Thursday, July 11, 2019

Can't Collect on Half a Judgment

Newstart Real Estate Inv. LLC v. Huang, No. B292417 (D2d8 Jul. 3, 2019)

P wins a money judgment that includes punitive damages. The Court, however, issues a remittitur on punitives under Code of Civil Procedure § 662.5. P rejected it, resulting in a granted motion for a new trial. P appeals under § 904.1(a)(4). And while that’s proceeding, P starts to make efforts to collect on the compensatory part of the judgment. 

The trial court shuts that down, reasoning that a grant of a new trial has the effect of vacating the whole judgment until retrial occurs and a single final judgment can be entered. The Court of Appeal agrees. You can only collect on a final judgment. When a new trial motion is granted, that vacates the judgment as a matter of law. That a retrial might ultimately be addressed only to the punitives and not to liability or compensatory damages is not relevant to the collectability issue.

Affirmed.

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