Filing an action on a judgment under section 337.5(b) of the Code of Civil Procedure in California

Filing an action on a judgment under Code of Civil Procedure § 337.5(b) in California is the topic of this blog post. 

Many people are under the impression that a California judgment is no longer collectible once 10 years have passed since the date of entry of the judgment.

That is not always true. In fact, Code of Civil Procedure § 683.020 states that, "Except as otherwise provided by statute, upon the expiration of 10 years after the date of entry of a money judgment or a judgment for possession or sale of property:

(a) The judgment may not be enforced.

(b) All enforcement procedures pursuant to the judgment or to a writ or order issued pursuant to the judgment shall cease.

(c) Any lien created by an enforcement procedure pursuant to the judgment is extinguished."

However, what many people do not know is that a separate action on the judgment may be commenced after the 10 year enforcement period has expired, if the statute of limitations provided by Code of Civil Procedure § 337.5(b) has not yet expired. That statute of limitations is also 10 years. However, it does not begin to run until the judgment has become final either upon expiration of the period within which an appeal may be taken, or, if an appeal is taken, upon the issuance of the remittitur when the judgment has been affirmed. See Hoover v. Galbraith (1972) 7 Cal.3d 519, 525-526.

And if the judgment debtor is absent from the state, the statute of limitations is tolled for the period of time they are absent pursuant to Code of Civil Procedure § 351; see also Green v. Zissis (1992) 5 Cal.App.4th 1219,  1223.

And if the judgment debtor files a bankruptcy petition the statute of limitations period is also tolled during the period of the automatic stay.  Kertesz v. Ostrovsky (2004) 115 Cal.App.4th 369, 377.

This means that many California judgments that are considered not collectible may in fact be collectible simply by filing an action on the original judgment pursuant to the provisions of Code of Civil Procedure § 337.5.

And a judgment creditor is entitled as a matter of right to a judgment on the original judgment providing it is commenced within the 10- year statute of limitations period. Laches is no defense. See United States Capital Corp. v. Nickelberry (1981) 120 Cal.App.3d 864, 867-868.

Note that a stipulated judgment cannot normally be appealed and becomes final when entered, unless both parties enter into the stipulated judgment to facilitate an appeal.  Cadle Co. II, Inc. v. Sundance Financial, Inc. (2007) 154 Cal.App.4th 622, 624.

Attorneys or parties in the State of California who would like to view a sample complaint for an action under  Code of Civil Procedure § 337.5(b) can click below.

http://www.scribd.com/doc/117991884/Sample-Complaint-to-Renew-Judgment-Under-CCP-Section-337-5-b



The author of this blog post, Stan Burman, is an entrepreneur and freelance paralegal that has worked in California and Federal litigation since 1995 and has created over 300 sample legal documents for California and Federal litigation.

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