Default judgement - business changed name

[Anthony Brown]

Jurisdiction

California

I was awarded a judgement in Federal Court against a business in California, then found that they had changed their business name - same business entity, just a minor name change - after we had filed for default judgement. My attorney is telling me that the name on the judgement cannot be amended, and that my only recourse is to sue them again under their new name. That seems ridiculous to me...if that were true, then businesses would do a small name change all the time to get out of being sued. Can I not just request the court to amend the judgement to the new name?

 

[army judge]

If you hold a judgment against ABC Company that changed its name to XYZ Enterprises after you received a judgment against ABC, does your attorney explain his reasoning as to how XYZ (which is also ABC) became judgment proof?

Hmmm, when was the defendant served?
When did you receive the default judgment?
In what geographic location does the defendant do business?
Is what US state is the corporation a citizen?
What is the value of the judgment?
When did the defendant change the corporate name?
Where was the change effected?

Think about this, mate.

Billy Brown is charged with murdering Larry Green.
Bully Brown is arrested, and absconds during the trial.
Billy Brown is tried in absentia and convicted of murdering Larry Green, eventually receiving a life sentence in prison.
Billy Brown changes his name and gender MAGICALLY becoming Peggy Purple.

Peggy's fingerprints reveal "she" is the killer "formerly known as" Billy Brown.

Does Peggy Purple get to avoid incarceration?

 

[Anthony Brown]

My thoughts exactly...but I'm not a lawyer.
He didn't necessarily say they are judgement-proof; he just said the name on the judgement can't be changed. But from what little I understand about judgements, I'll have a hard time collecting if the names don't match exactly

In answer to your questions:

Hmmm, when was the defendant served? 12 months ago
When did you receive the default judgment? 13 months ago
In what geographic location does the defendant do business? SoCal
Is what US state is the corporation a citizen? CA
What is the value of the judgment? $15K
When did the defendant change the corporate name? 14 months ago (after we filed for default, but before we received the judgement)
Where was the change effected? CA

 

[army judge]

Hmmm, when was the defendant served? 12 months ago
When did you receive the default judgment? 13 months ago
In what geographic location does the defendant do business? SoCal
Is what US state is the corporation a citizen? CA
What is the value of the judgment? $15K
When did the defendant change the corporate name? 14 months ago (after we filed for default, but before we received the judgement)
Where was the change effected? CA

Here's what I suggest you do, if its possible and won't cost you anything but time.

I'd ask my lawyer (or former lawyer, as the case might be) for a brief, as in 15 minute meeting.

If he/she ask why you should be granted such an audience, say you've got a few questions about why he/she believes the judgment to be noncollectable.

In fact, if he/she has five minutes, maybe it could happen on the telephone.

All you want to know is what was her/his legal reasoning behind the statement that the judgment can't be collected against the current incarnation of ABC CO.

There are strict rules about if a company owes money to creditors, company dissolution is not a legitimate option.

There ARE legal ways to avoid or get rid of debt, but changing a name isn't one.

I would also suggest you talk to firms who collect debts.
The debt collection form gets 20-30% of the amount collected, but 70-80% of loaf of bred is better than no loaf of bread at all.

The debt collection agency or law firm might be able to shed more insight onto your lawyer's comments.

 

[Zigner]

Using generic terms, can you explain what the "minor" name change was?

For example, did the name go from "Joe's Plumbing and Heating" to "Joe's Plumbing, Heating, and Air Conditioning", or did the name go from "Joe's Plumbing" to "Joe's Plumbing, Inc."?

 

[Anthony Brown]

Something along the lines of changing from "Joe's Plumbing Corp" to "Mr Joe's Plumbing Corp"

 

[Zigner]

Something along the lines of changing from "Joe's Plumbing Corp" to "Mr Joe's Plumbing Corp"

Why do you feel this was a name change, vs. a new business entity?

 

[Anthony Brown]

Why do you feel this was a name change, vs. a new business entity?

It's the same entity; the CA entity number did not change, just the name

 

[army judge]

It's the same entity; the CA entity number did not change, just the name

You have the federal civil judgment against your debtor.

What have you done (or attempted to do) with your judgment?

Federal judgments are a tad more complicated than most state court judgments.

I think I am beginning to understand your confusion.

However, when you do it correctly, you tend to get your money!

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Take a look at FRCP Rule 69:

Federal Rules of Civil Procedure › TITLE VIII. PROVISIONAL AND FINAL REMEDIES › Rule 69. Execution

(a) In General.

(1) Money Judgment; Applicable Procedure. A money judgment is enforced by a writ of execution, unless the court directs otherwise. The procedure on execution—and in proceedings supplementary to and in aid of judgment or execution—must accord with the procedure of the state where the court is located, but a federal statute governs to the extent it applies.

(2) Obtaining Discovery. In aid of the judgment or execution, the judgment creditor or a successor in interest whose interest appears of record may obtain discovery from any person—including the judgment debtor—as provided in these rules or by the procedure of the state where the court is located.


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You need to consider FRCP Rule 58

Federal Rules of Civil Procedure › TITLE VII. JUDGMENT › Rule 58. Entering Judgment
Rule 58. Entering Judgment

(a) Separate Document. Every judgment and amended judgment must be set out in a separate document, but a separate document is not required for an order disposing of a motion:

(1) for judgment under Rule 50(b);

(2) to amend or make additional findings under Rule 52(b);

(3) for attorney's fees under Rule 54;

(4) for a new trial, or to alter or amend the judgment, under Rule 59; or

(5) for relief under Rule 60.

(b) Entering Judgment.

(1) Without the Court's Direction. Subject to Rule 54(b) and unless the court orders otherwise, the clerk must, without awaiting the court's direction, promptly prepare, sign, and enter the judgment when:

(A) the jury returns a general verdict;

(B) the court awards only costs or a sum certain; or

(C) the court denies all relief.

(2) Court's Approval Required. Subject to Rule 54(b), the court must promptly approve the form of the judgment, which the clerk must promptly enter, when:

(A) the jury returns a special verdict or a general verdict with answers to written questions; or

(B) the court grants other relief not described in this subdivision (b).

(c) Time of Entry. For purposes of these rules, judgment is entered at the following times:

(1) if a separate document is not required, when the judgment is entered in the civil docket under Rule 79(a); or

(2) if a separate document is required, when the judgment is entered in the civil docket under Rule 79(a) and the earlier of these events occurs:

(A) it is set out in a separate document; or

(B) 150 days have run from the entry in the civil docket.

(d) Request for Entry. A party may request that judgment be set out in a separate document as required by Rule 58(a).

(e) Cost or Fee Awards. Ordinarily, the entry of judgment may not be delayed, nor the time for appeal extended, in order to tax costs or award fees. But if a timely motion for attorney's fees is made under Rule 54(d)(2), the court may act before a notice of appeal has been filed and become effective to order that the motion have the same effect under Federal Rule of Appellate Procedure 4 (a)(4) as a timely motion under Rule 59.

Rule 58. Entering Judgment


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Perhaps this will help:

Civil Judgment Forms

 

[Anthony Brown]

You have the federal civil judgment against your debtor.

What have you done (or attempted to do) with your judgment?

Federal judgments are a tad more complicated than most state court judgments.

I think I am beginning to understand your confusion.

However, when you do it correctly, you tend to get your money!

========================================

We haven't done anything about collecting the judgement yet; my attorney said to just wait and let the interest go up.

I see FRCP 52b and 59e both indicate that motions to amend judgements must be filed within 28 days of entry. So I guess we missed the boat on that

...although that would still raise the question, what if they had changed their business name more than 28 days after entry of Judgement? Then the plaintiff has no recourse? That seems ridiculous as well
​

 

[army judge]

although that would still raise the question, what if they had changed their business name more than 28 days after entry of Judgement? Then the plaintiff has no recourse? That seems ridiculous as well

I haven't thoroughly researched all aspects of your dilemma, however, from what has been revealed about the "name change"; I'm not sure it is relevant.

 

[zddoodah]

I was awarded a judgement in Federal Court against a business in California, then found that they had changed their business name - same business entity, just a minor name change - after we had filed for default judgement. My attorney is telling me that the name on the judgement cannot be amended, and that my only recourse is to sue them again under their new name. That seems ridiculous to me...if that were true, then businesses would do a small name change all the time to get out of being sued. Can I not just request the court to amend the judgement to the new name?

You're right. It is ridiculous. File a motion to amend the judgment.