Small Business Who Refuse to Pay Court Ordered Punitive Damages

**Justice44** · 01-03-2009 02:55 PM

For those who have studied law, I would like to know the severity of the financial consequences of a business refusing to pay punitive damages to a plaintiff in a court settlement. How badly will small business' credit score be ruined? The reason why I am asking is that I am shocked that many small businesses think they are absolved from being sued because of their revenue.

**jasaunders** · 01-03-2009 05:57 PM

It has nothing to do with a credit score. If the court ordered settlements aren't paid, there are other remedies that can be taken, such as garnishments from bank accounts or filing a motion to hold the party in contempt. Not to mention, any business you are working with will see a lien and may decide not to do business with you as a result.

**Justice44** · 01-05-2009 05:28 PM

Originally Posted by jasaunders

It has nothing to do with a credit score. If the court ordered settlements aren't paid, there are other remedies that can be taken, such as garnishments from bank accounts or filing a motion to hold the party in contempt. Not to mention, any business you are working with will see a lien and may decide not to do business with you as a result.

So your credit score is not effected for debt owed? How long does it take to get these remedies rolling. My mom had a tenant who left without paying rent. I have to get her to use the legal plan to consult with an attorney.

**CDRamming** · 01-05-2009 07:20 PM

Are you seeking punitive damages in this case? Punitive damages will not be assessed unless "gross conduct" occurred, which usually in civil cases only occurs in drunk driving accidents and serious acts of neglect. Your case would most likely be best handled in a small claims court and you can sue for compensatory damages (the amount necessary to make you financially "whole") for the amount of rent owed, as well as damages to the property. If the person no longer occupies the residence and left early from his contract you can seek compensation for the months the property was not occupied if you can prove to the court that you made a valid attempt to find a tenant to replace the previous. If the defendant (tenant) is unable to pay his wages can be garnished and tax returns sent to your mother. If it is a small business this can occur to the owners of the company as well as liens assessed against the business and possible liquidation of all assets in order to pay off the outstanding balance. If it is a company do you know what entity it is organized under? I will be able to help you further if I know this.
*I am not an lawyer and all legal matters should be taken care of through a lawyer*

**bking** · 02-23-2009 01:46 PM

Judgments in court are more than just a "debt owed". Judgments do show up on your credit report, usually as just that: a judgment.

If you take the tenant to court and win, that doesn't mean you get paid. There are attorneys out there who specialize in just trying to collect on the judgment awarded in the original lawsuit. I don't think you'll see punitive damages awarded in a landlord/tenant suit, just contractual remedy based on the rent owed.