Confirmed or set judgments are quite common in the context of preliminary and legal disputes, and disputes in the cannabis industry are no different. Since the concepts are slightly different, here’s an overview of both why they might be the best scenario for you and how you can make sure they are effective (assuming a court is ready to accept the filing).
Confession of judgment
A confession of judgment enables a judgment to be made or to become due for money due. Once a confession is received by the court, it is just as enforceable as any other judgment. Amazingly, it can be obtained before a lawsuit is even filed – making it a great and highly efficient solution in any dispute situation. However, it’s quite rare and difficult to come by as few defendants (or potential defendants) will agree to it. In some cases, however, we have seen potential defendants consent to a confession of the verdict if they understand that the alternative – litigation – is ultimately not worthwhile because their chances of success are slim and they do not have the means to defend a lawsuit, etc. .
Of course, confessions can be viewed as a violation of due process rights since the accused is giving up his rights of defense. Hence, it is important that all procedural requirements are strictly followed when filing a. In California, the plaintiff must file two statements with a confession. The first is an affidavit by the defendant that: (a) permits the entry of a judgment for a specified sum, (b) states the facts out of which the sum or liability arose, and (c) shows that the amount confessed Is “fair”. due or becoming due. The second is a certificate from the defendant’s attorney stating that he: (a) reviewed the proposed judgment, (b) advised the defendant of the rights and defenses he is waiving, and (c) advised the defendant has to admit that assessment.
Provision for judgment
A provision for a judgment is similar and is commonly used when a plaintiff is forced to file a lawsuit but is able to reach an agreement with the defendant. There are often trade-offs involved in settlement, so it may happen that the parties have been able to agree on a repayment schedule and the plaintiff wants collateral to ensure that all payments are made. Or it may be the case that the plaintiff is willing to discount the amount of debt owed by the defendant because its likelihood of legal action is unclear.
There are a variety of reasons that a set judgment might make sense. In these cases, these judgments should be enforced and submitted to the court as soon as possible. Again, the same due process considerations are required. So make sure that the judgment set up is personally signed by all parties – not just the lawyers.
A few little things at the end. First, when a set judgment is entered, you can also consider receiving post mortgage liens. For example, if a judgment is not passed until the defendant defaults on a payment schedule months later, other creditors may encumber the defendant’s assets in the meantime. Second, it is important to know that if the defendant eventually files for bankruptcy, a given judgment will generally not have an exclusive effect. One way to counteract this is to include language in the provision that shows the intent of all parties that the amount owed cannot go bankrupt (which may not even be an option if the culprit is a cannabis company).