Winning a lawsuit against a business is only half the battle. Getting paid requires a separate enforcement process, and many judgment creditors don’t realize how much work lies ahead after the court rules in their favor. In Washington DC, the judgment enforcement process involves specific procedures and remedies that differ from those in many other jurisdictions. Understanding these options can mean the difference between collecting what you’re owed and watching a judgment gather dust.
The Judgment Becomes Your Legal Tool
Once you have a final judgment from a DC court, it becomes a powerful collection tool. The court won’t automatically collect the money for you, though. You’ll need to take action. A judgment in DC is valid for 12 years and can be renewed. This gives you time to pursue collection, but waiting too long can make enforcement harder. Businesses change, assets move, and accounts close.
Discovering Business Assets
Before you can collect, you need to know what the business owns. DC courts provide several discovery tools for judgment creditors:
- Interrogatories asking about bank accounts, real estate, and other assets
- Requests for documents showing income and property
- Debtor examinations where business representatives must appear in court and answer questions under oath
The subpoena process for third parties can reveal where a business banks, who owes them money, and what property they hold. Sometimes a business will try to hide assets, but a Washington D.C. Commercial Litigation Lawyer can use legal discovery to uncover what’s really there.
Garnishing Business Accounts And Receivables
Garnishment is one of the most effective enforcement methods. In DC, you can garnish bank accounts, customer payments, and other debts owed to the judgment debtor. Bank account garnishment often catches businesses off guard. Once served, the bank must freeze the account and turn over available funds up to the judgment amount. The business gets notice and a chance to claim exemptions, but most business assets don’t qualify for protection. Garnishing accounts receivable works differently. You can intercept payments that customers owe to the judgment debtor. This ongoing garnishment continues until the judgment is satisfied. For businesses with regular income streams, this can be particularly effective.
Executing Against Business Property
When a business owns real estate, vehicles, or equipment, you can ask the court for a writ of execution. The U.S. Marshals Service or DC’s enforcement office can then seize and sell the property to satisfy your judgment. Personal property execution requires identifying specific assets and their location. The execution process involves notice requirements and sometimes public auction sales. Real estate is easier to locate but harder to sell quickly. Liens against business property provide another option. Recording a judgment lien with the DC Recorder of Deeds creates a claim against any real property the business owns in the District. When they try to sell or refinance, your lien must be paid.
Piercing The Corporate Veil
Sometimes, a business judgment can’t be collected because the company has no assets. If the business owners used the corporate form to commit fraud or didn’t maintain proper separation between personal and business affairs, you might be able to hold them personally liable. Veil-piercing cases are fact-intensive. Courts look at factors like commingling funds, undercapitalization, and whether the business was just an alter ego of the owner. A Washington D.C. Commercial Litigation Lawyer can evaluate whether this remedy applies to your situation.
Practical Enforcement Strategies
The most effective enforcement approach depends on what assets the business has and how cooperative they’re being. Many businesses will negotiate a payment plan once they realize you’re serious about collection. Starting with less aggressive methods sometimes makes sense. A simple demand letter might prompt payment. But if the business is playing games or hiding assets, you’ll need to use the full range of enforcement tools quickly.
Multiple enforcement methods can be used simultaneously. You might garnish bank accounts while also executing against equipment or pursuing veil piercing claims. The goal is to create enough pressure that paying the judgment becomes the path of least resistance. Judgment enforcement takes persistence and knowledge of DC’s specific procedures. Eric Siegel Law works with clients to develop collection strategies that match the circumstances of each case, using the enforcement methods most likely to produce results in your situation.