#24 - (Making Good Use Of Stipulated Judgments; Jerry Koosman)

During the last 2 to 3 years because of the state of the economy, I have dealt with more than my usual share of Stipulated Judgments on behalf of various clients, both on the providing and receiving ends. Stipulated Judgments are a cost effective tool primarily because trial and the resulting exorbitant expense is avoided.
For those who are not familiar with this mechanism (my non-lawyer audience who actually reads this part of the blog), the respective parties agree to skip the trial by settling for a pre-determined amount and the party being paid obtains a judgment for the entire amount in dispute, which is put on the shelf and never used so long as the agreed upon amount is paid in accordance with the agreement (in the agreed upon installment amounts and in the agreed upon time). Parties agreeing to pay are receptive because they are getting the equivalent of a debt reduction and recipients are receiving certainty.

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