Here’s the scenario: You’ve just won a civil judgment and you’re trying to find the quickest most efficient way to collect your judgment. If your research reveals that the judgment debtor is suing someone else, you have a valuable opportunity to leverage their potential recovery. A lesser known but powerful tool for judgment collection in California is placing a lien on a pending lawsuit.
What is a Judgment Lien?
Authorized by California Code of Civil Procedure 708.410, a judgment lien is a legal claim that attaches to a debtor’s interest in the lawsuit they are in the middle of. Once properly filed a served, you have attached any recovery they might obtain on the lawsuit and the debtor cannot settle or dismiss their lawsuit without your consent as the lienholder.
Steps to Place a Lien on a Pending Lawsuit in California:
- Obtain a Certified Copy of the Judgment: Request a certified copy of your judgment or abstract of judgment from the court clerk. This will be required when filing your lien.
- Prepare a Notice of Lien: The Notice of Lien must include the following information:
- Name and address of the judgment debtor
- Name and address of the judgment creditor
- Amount of the judgment
- Name and address of the court that issued the judgment
- Date of the judgment
- File the Notice of Lien: File the Notice of Lien with the court where the debtor’s pending lawsuit is located.
- Serve the Notice of Lien: Ensure the Notice of Lien is properly served on the debtor and all other parties involved in the pending lawsuit.
If you’re a judgment creditor in California and your debtor has a pending lawsuit, placing a lien on that lawsuit can be a strategic move to secure the money you’re owed.
