Judgment

How BC law treats it

A judgment binds the parties to the lawsuit. It is not automatically a precedent: only the legal reasoning has precedential value, and only where it comes from a court that binds the later court, such as the Court of Appeal for British Columbia for BC trial courts. Most trial judgments turn on their own facts. A judgment can be obtained after trial, on a summary trial, or by default where the defendant does not file a response to civil claim within the time allowed. Collecting a money judgment is a separate step. In BC, a judgment creditor can garnish wages or bank accounts under the Court Order Enforcement Act, register the judgment against the debtor's land in the Land Title Office, and enforce against goods through a writ of seizure and sale executed by a court bailiff. From registration, the judgment forms a lien and charge on the debtor's interest in the land (Court Order Enforcement Act s. 86), but it ceases to do so after two years unless the registration is renewed before then (s. 83). BC's Money Judgment Enforcement Act, which received Royal Assent in 2023, will replace much of this enforcement process once it is brought into force by regulation, so its status should be checked before enforcing. The creditor can also examine the debtor about assets and income under Rule 13-4 of the Supreme Court Civil Rules. Under Limitation Act s. 7, a proceeding to enforce or sue on a judgment for the payment of money or return of property must generally be brought within 10 years after the judgment becomes enforceable. A party who disagrees with a BC Supreme Court judgment generally has 30 days to file a notice of appeal to the Court of Appeal under the Court of Appeal Act. Judgments from other provinces can be registered in BC under the Enforcement of Canadian Judgments and Decrees Act.

What it means for your business

For a business owed money, winning in court is only half the job. A judgment against a company with no assets may be worth little, so the enforcement plan should start before the lawsuit is filed. Registering against land early, garnishing accounts and examining the debtor can turn a paper judgment into payment. For a business that is sued, a default judgment can be entered quickly if the response deadline is missed. Example: A Langley supplier obtains a $60,000 judgment against a contractor for unpaid invoices. It registers the judgment against the contractor's property in the Land Title Office and garnishes the contractor's bank account, prompting a payment arrangement within weeks.

Risks and common mistakes

Assuming a judgment means the money will be paid without further enforcement steps. Ignoring a notice of civil claim and allowing a default judgment to be entered. Letting a registered judgment lapse on title by failing to renew it. Missing the 30 day deadline to appeal a BC Supreme Court decision. Treating every trial judgment as a binding precedent for future disputes.