What Is a Default Judgment?

When you file a lawsuit, you expect the other side to show up and defend themselves. But what happens if they don’t? That’s where a default judgment comes in. It’s a powerful legal tool that can decide the case in your favor if the other side ignores the lawsuit.

Here’s what business owners need to know about default judgments, how they work, and why they matter.

What Is a Default Judgment?

A default judgment happens when one side in a lawsuit fails to respond or appear in court. If the defendant doesn’t file an answer by the deadline or skips a scheduled court appearance, the judge may enter a judgment in favor of the plaintiff (the person who filed the lawsuit).

In other words, if the other side doesn’t play by the rules, they can lose automatically.

How Do You Get a Default Judgment?

The process usually involves two steps:

1. Entry of Default: The court formally notes that the defendant failed to respond by the deadline.

2. Default Judgment: The court then issues a judgment, which can include money damages or other relief requested in the complaint.

In some cases, the plaintiff must present evidence to prove the amount of damages, even if the defendant didn’t show up.

Why Default Judgments Matter

• Saves time and money: If the other side ignores the case, you can win without going through a full trial.

• Enforceable judgment: Once granted, a default judgment is just as enforceable as one decided after trial. You can use it to collect money or enforce rights.

• Deterrent: Knowing that ignoring a lawsuit can lead to default judgment encourages defendants to participate.

Can Default Judgments Be Set Aside?

Yes. Courts sometimes allow defendants to undo (or “vacate”) a default judgment, but only under limited circumstances, such as:

• Excusable neglect (for example, they never got the papers or had a genuine emergency).

• A meritorious defense (they actually have a valid legal argument).

• Prompt action (they must act quickly once they realize a default judgment has been entered).

Practical Example

Imagine your business sues a client for unpaid invoices. The client ignores the lawsuit and never files an answer. After the deadline passes, you can ask the court for a default judgment. If granted, you now have a legally enforceable order requiring the client to pay.

Final Thought

Default judgments are a critical part of the legal system. They protect plaintiffs from endless delays when defendants refuse to participate. But they also carry risks, since courts may sometimes reopen cases if the defendant shows good cause.

For business owners, the takeaway is simple: never ignore a lawsuit—and if the other side does, know that you may be able to win by default.

This blog is for informational purposes only and not legal advice. If you’re dealing with a lawsuit and want to understand your options, consult with experienced counsel.