You have discovered that a judgment has been entered against you or your business; what do you do now? Finding out that you a judgment has been entered against you, or your business is a scary experience. This article will discuss whether you might be able to have the case reopened which will give you a chance to fight the case. This process is handled by filing a motion to reopen the judgment under Wis. Stat. 806.07. This article will help you learn about the process.
Default Judgment
A default judgment occurs when a court rules in favor of the plaintiff because the defendant (in this case, you or your business) failed to respond to a lawsuit or appear in court. Basically, if a lawsuit was filed against you and proper proof of service is filed with the Court, if you do not respond to the lawsuit, the Court will rule in favor of the Plaintiff. Luckily, Wisconsin law recognizes that sometimes the judgment should not have been entered against you or your business.
Reopening a Default Judgment
Identify the Reason for Default: The first step should be to obtain all of the information you can about the judgment. Wisconsin has a Circuit Court Access page (CCAP) that can be accessed here: Wisconsin Circuit Court Access. If you search CCAP for your or your business’ name, you should be able to find the case. Once you find the case on CCAP, you can learn when you or your business were served with the lawsuit and why the default judgment was entered. The Common reasons for entry of a default judgment include not receiving lawsuit notices or mishandling paperwork. It will also be helpful to collect any evidence that you may have of improper service or to document the extenuating circumstances that led to you or your business’ inability to file a response to the lawsuit.
File a Motion to Reopen: Under Wisconsin Statutes 806.07, you can request relief from a judgment for the following reasons:
- (a) Mistake, inadvertence, surprise, or excusable neglect;
- (b) Newly-discovered evidence which entitles a party to a new trial under s. 805.15 (3);
- (c) Fraud, misrepresentation, or other misconduct of an adverse party;
- (d) The judgment is void;
- (e) The judgment has been satisfied, released or discharged;
- (f) A prior judgment upon which the judgment is based has been reversed or otherwise vacated;
- (g) It is no longer equitable that the judgment should have prospective application; or
- (h) Any other reasons justifying relief from the operation of the judgment.
In addition to one of the above listed reasons that a judgment can be reopened, you must also be able to present a meritorious defense. This means providing a valid legal argument that could potentially change the outcome of the case. In other words, a Court is not going to reopen a judgment if the Court will end up entering the judgment against you at a later date.
It is also important to understand that there are deadlines for filing a motion to reopen. In Wisconsin, you generally have a reasonable time to file a motion to reopen a default judgment. Wisconsin Courts have decided that if you argue that the reason that you did not respond to the lawsuit was due to mistake, inadvertence, surprise, or excusable neglect, a reasonable time to file a motion to reopen is within 1 year.
A default judgment can have significant impacts on you and your business, including financial strain, damage to credit rating, and potential legal repercussions. By taking prompt action to reopen the case, you can mitigate these consequences and protect your business’s future. Reopening a default judgment is a challenging but achievable task. By understanding the process, gathering the necessary evidence, and seeking legal assistance, you can increase your chances of successfully reversing the judgment. It is often beneficial to seek the assistance of an experienced attorney that can help you prepare your motion, gather evidence, and present a strong defense in court. Contact the experienced business litigation attorneys at Halling & Cayo, S.C. today for a free consultation.
David Seth Hill focuses his practice on securities litigation, construction litigation, and commercial litigation. Seth is a Shareholder at Halling & Cayo, S.C. and has been a licensed attorney for more than 15 years. He has experience handling a very broad range of civil litigation matters and has represented Clients throughout the State of Wisconsin, including individuals, small, and large businesses (including fortune 500 companies). He can be reached directly:
E-mail: dsh@hallingcayo.com
Phone: 414-271-3400