§ 11932 Judgment Satisfaction Threshold

This law says a court judgment is considered paid off when at least $25,000 is put into the judgment, even if the total judgment is higher, and it treats a bond backed by the U.S. or state as a cash deposit.

Key Takeaways

•A judgment from one accident is “satisfied” once $25,000 is paid into it, no matter how big the total judgment is.
•Bonds that are backed by the full faith and credit of the U.S. or the state count as cash deposits.
•The rule only applies to judgments that exceed $25,000.

Example

A driver causes a crash and a court orders them to pay $60,000 to the injured party.

The judgment is only considered satisfied once $25,000 is actually paid into the judgment account, even though the total owed is $60,000. After $25,000 is credited, the judgment meets the law’s definition of “satisfied.”

How to Calculate

If Judgment Amount > $25,000, then Judgment is satisfied when Credited Amount ≥ $25,000.

Look at the total judgment amount from the accident.
Check if that amount is more than $25,000.
Make sure at least $25,000 has been credited (paid) toward the judgment.
If $25,000 or more is credited, the judgment is considered satisfied.

A court orders a $40,000 payment for a slip‑and‑fall injury.

Result: Since $25,000 (the required minimum) has been credited, the judgment is satisfied under the statute.

For the purposes of this article: (a) A judgment is satisfied when twenty-five thousand dollars ($25,000) has been credited upon any judgment in excess of that amount which arises out of any one accident or occurrence. (b) A deposit of bond or other obligation for the payment of which the full faith and credit of the United States or of this state is pledged is considered a deposit of money. (Enacted by Stats. 1967, Ch. 15.)

Key Takeaways

•A judgment from one accident is “satisfied” once $25,000 is paid into it, no matter how big the total judgment is.
•Bonds that are backed by the full faith and credit of the U.S. or the state count as cash deposits.
•The rule only applies to judgments that exceed $25,000.

Example

A driver causes a crash and a court orders them to pay $60,000 to the injured party.

How to Calculate

If Judgment Amount > $25,000, then Judgment is satisfied when Credited Amount ≥ $25,000.

Look at the total judgment amount from the accident.
Check if that amount is more than $25,000.
Make sure at least $25,000 has been credited (paid) toward the judgment.
If $25,000 or more is credited, the judgment is considered satisfied.

A court orders a $40,000 payment for a slip‑and‑fall injury.

Result: Since $25,000 (the required minimum) has been credited, the judgment is satisfied under the statute.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 11932 Judgment Satisfaction Threshold

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References