Legal Question in Personal Injury in California
Award of Costs
I filed a Municipal Court action which was later transferred to Small Claims Court against the local city; I won in Small Claims Court, but lost in a Trial De Novo and the city was awarded costs in the neighborhood of $1600.00. The City filed a lien against my home, but due to lower income making monthly payments of $25 per month. Would it be advantage to pay the city off entirely before the year is up when costs were awarded? Or, okay to go ahead and make payments until it is paid down sufficiently to pay off and get a Satisfaction of Judgment and ask the city to remove the lien? Am I running any risk with the lien against my home in taking longer than a year since costs were awarded is my main concern. Thank you for any information you can give me.
2 Answers from Attorneys
Re: Award of Costs
Interest does accrue on any judgment. By paying it off, you avoid 10% interest. Additionally, if you want to refinance, it would serve as a cloud on your title. If you can afford it, it might make sense to pay it off. Also, the City might negotiate with you on the costs, since the City didn't have to pay for filing fees -- only depositions if it took any. Good luck!
Re: Award of Costs
It sounds like you might be asking a tax related question. If so, please consult a tax attorney. Regarding the judgment, if it is easier for you to just pay it off now, then you would save on interest. But, if it is easier just to pay the installments, then do that. Regarding the lien, you probably won't be able to refinance if there is a lien, so, the lender will make you pay it off. Or, the lender may include that in the loan and pay it off directly to clear title. Also, the failure to pay an outstanding judgment may affect your credit. Good luck and thanks for inquiring.
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