Legal Brief for November, 2016

How Do I Collect On My Judgement?

With the increase in the amount for claims that can be brought in Provincial Court - Civil Division (previously known as Small Claims Court) to the current $50,000.00, I find that many clients are seeking to obtain judgments against other parties for claims that previously did not justify the time or expense of chasing after.  As the Provincial Court system is designed to allow people to file their own claims and appear at trials without having a lawyer, many people arrive at the end of the process with a Court Judgment in hand but unsure about how to collect the money owing on the Judgment.  I often then get phone calls from clients at this stage with the age old question - "How do I get paid?"

There are several options available to the person holding the Judgment.  The first is to request (hope) that the party that you sued will pay you voluntarily.  This is only likely to happen however only if the defendant has appeared at the trial and is able and willing to honour what the Court has ordered.  Unfortunately this tends to be the exception rather than the rule.

If you are unable to get the defendant to pay in this manner, then you will have to proceed to what is known as "enforcement".  This is where you use legally mandated processes which in effect force the defendant to pay, whether they like it or not.

A common option is to try what is known as a "garnishee".  If for example you know where the defendant works, you can have the Court issue what is known as a Garnishee Summons.  This document is then sent to the employer of the defendant.  The employer is then required to send a portion of the employee's earnings back to the Court office.  Those funds will then be paid by the Court office to you (and any other creditors of the defendant who may also have a judgment against the person).  A Garnishee Summons can also be sent to a bank if you happen to know where the defendant has a bank account.

A second option is what is known as a "seizure".  If for example you know where the defendant has its office or shop if it is a business or where he or she lives if they are an individual, you can have a bailiff go to the premises and place a legal seizure on any goods or equipment found there.  If the defendant does not pay the debt owing after the seizure is put in place, you can then eventually have the goods sold at public auction and the proceeds will be paid to you, less any expenses incurred by the bailiff and the auction.

A third option is if you know that the defendant owns land, whether a residence in the city or an acreage or other rural property, then you can have your judgment registered against the Certificate of Title to the property at the Land Titles Office.  The document will then remain registered on the Title indefinitely, and when the owner eventually sells the property then you will get paid from the sale proceeds.

Any one of these options or a combination of all three of them will hopefully prove effective in recovering your hard earned money that the defendant owes to you.