A prejudgment remedy (or PJR) is a unique legal tool that allows for a plaintiff to seek and attach a defendant’s assets early in the litigation process and before a final judgment is rendered by the court.
Connecticut is one of several states that allows for the plaintiff to file for a PJR before a case goes to trial. Filing a PJR along with a lawsuit can strengthen your case in a number of ways.
Here are four reasons to file a PJR:
1. Attach Defendant’s assets. The purpose of a PJR is to ensure there are sufficient assets in case the lawsuit is successful. A successful PJR will lead to an attachment of the defendant’s assets in an amount that ensures the Plaintiff gets paid.
2. Allows you to “test” your legal argument. The PJR hearing takes place before the judge. During the hearing, the Plaintiff is required to present his case to justify an attachment on the Defendant’s assets and the Defendant has the ability to defend himself. The standard of proof is low; in fact, a Plaintiff must merely prove the existence of probable cause for their claim. Even though the standard is low, the hearing does give some insight into how a court may view the claims before the parties invest more time and money into the case.
3. Accelerates the pace of litigation - leverage. A PJR may accelerate the pace of litigation by increasing the likelihood of an early settlement for two reasons. First, a PJR hearing usually takes place a couple months after the lawsuit is filed, so the defendants will be faced with the inconvenience of being dragged into court quickly.
4. Accelerates the pace of litigation – public disclosure. In addition to inconvenience of having to go to court, if a PJR is granted, the defendants will likely have to disclose all of their assets to the court. Therefore, defendants may be persuaded to reach an early settlement rather than disclosing their assets publicly.
If you have any further questions on Prejudgment Remedies, or with any other legal matters related to your business or estate planning, please contact us at jfournier@jeflegal.com or 860.670.3535.