Legal Question in Credit and Debt Law in California
Satisfaction of Judgment
I won a small claims court case with a judgment of a few hundred dollars. This involved an auto accident. I am supposed to notify the court through an ''Acknowledgment of Satisfaction of Judgment'' when I have received payment. I received a check from the other party's uto insurance company payable only when accompanied by a confirmed Satisfaction of Judgment to the court paperwork. The question is: does this conditional payment constitute ''payment in full'' or legal payment as the check will not clear without the Satisfaction of Judgment paperwork. However, if I notify the court that I have been paid but the check does not clear, what is my position? I do not want to tell the court that I have been paid when all I have is an uncleared check???
1 Answer from Attorneys
Re: Satisfaction of Judgment
Thanks for your inquiry. You can typically safely deposit an insurance company's check without worrying about it clearing, but it is normal to obtain a satisfaction of judgment before depositing the check.
If the check should bounce, you can always file a motion to reopen the case, or file a new lawsuit for breach of contract based upon the settlement agreement and the check.