Liquidation of judgment, a procedure that takes place after a condemnatory court decision

The settlement of a judgment is the stage or procedure that takes place after a condemnatory judicial decision, and it is necessary to think that we can only move on to a resolutive action if, and only if, there is the prerequisite of condemnation. This is a basic assumption, because the next step is to define precisely the amount to be paid, be it for material damages, moral damages or other obligations that become evident.

So let’s see. When a judgment opts for payment of a sum, but does not specify the exact amount, or when it is necessary to calculate the amount due to financial indices, corrections, interest and other variables, it is necessary to liquidate the judgment in order to determine the final amount of the obligation contracted and imposed by the court decision.

You see, the settlement of the sentence is necessary because it is fundamental for the effective conclusion of the stage, which is the enforcement of the judicial decision, thus ensuring that the winning party receives adequate and fair compensation for the damages suffered or rights recognized. This stage is based on the principles of liquidity, certainty and enforceability or, in other words, it brings clarity and precision to the amount to be enforced, allowing the winning party to receive what they are owed.

From a civilizational point of view, it is the outcome of the dispute that is now under the mantle of justice and mediated by a judge

As we saw in the presentation, the settlement of a judgment is part of the process, but what is it? It is a procedure that takes place after a condemnatory court decision, in which the aim is to establish an amount, be it monetary or moral, to be paid by the losing party to the winning party. From a civilizational point of view, it is the outcome of the dispute that is now done under the cloak of justice and mediated by a judge, with the purpose of precisely determining the amount to be paid, whether for moral damages, material damages or other obligations.

Once the court decision has been imposed, when the judgment establishes an order to pay a certain amount, but does not specify the exact amount, or when it is necessary to calculate amounts that result from indices, corrections, interest and other variables that are inferred from the judgment, it is necessary to liquidate the judgment in order to determine the final amount of the obligation.

It must bring clarity, as a basic element in its proposal for the outcome of the amount to be enforced, allowing the winning party to receive what is owed to them in accordance with the court decision handed down. However, the settlement of the judgment is fundamental to the effectiveness of the judicial decision, guaranteeing that the winning party receives the damages suffered or the rights recognized.

Despite the initial argument, we must be aware of where and how we use this procedure, because there are considerations to be made before it is actually used. In the process, liquidation of judgment is a procedure that becomes necessary when the judgment handed down by the judge does not determine the amount to be paid or it is not possible to directly calculate the amount owed. You see, before the outcome, liquidity, certainty and enforceability must be in evidence, and it is not evident that the process of seeking to remedy the inaccuracy or, in other words, seeking additional calculations to determine its value, is incorrect.

On the other hand, when the basic elements are not set out with such a premise, we must seek to remedy them by means of settlement by creditor’s calculations or settlement by articles.

Having clarified the path for both parties and made them aware of the path to be taken, the basis used to determine the amount owed. Settlement by creditor’s calculations or, also known as settlement by articles, is a phase in the judicial process in which the judgment establishes selective criteria for calculating the amount to be paid. However, the calculations need to be specific and detailed in order to determine the amount to be paid. In order to consolidate this stage, it is important to clarify that the calculations are based on formulas for rates, interest, monetary correction indices and other elements that corroborate the judgment.

The reason is that it is inappropriate to follow the guidelines of the judgment strictly, since it should contain all the calculation criteria. This stage, listed here, aims to ensure that the amount to be paid is calculated fairly, as it has the power to provide transparency and legal certainty, ensuring that both parties are aware of the prior knowledge expressed.

In the same vein, there is another form of award settlement, called settlement by arbitration or expertise. The name makes us think of the invocation of a third party to settle doubts that arise in the drafting of the judgment, since when it is handed down it does not provide sufficient elements to calculate the exact amount to be paid. When this situation arises, it will be necessary to appoint an expert or judge to determine the amount of the payment, using appraisals, technical opinions and other methods appropriate to the situation.

When we opt for this type of valuation, we seek to ensure that each party knows and is certain of the correct amount owed to them, taking into account technical and specialized factors that can influence the quantification of amounts. The reasoning is based on a technical and impartial analysis that contributes to a fair resolution of the case and avoids possible controversy over the amount to be paid, since the expert opinion seeks to answer the questions posed by the defendant, the plaintiff and the judge, and may even present supporting and innovative facts for a better solution to the dispute.

We will go through each of the phases in detail until we reach the outcome or solution to the dispute. Analyze the judgment carefully, because it is the first step, it is crucial in the liquidation process. This analysis is essential in order to understand the judge’s decision and identify any criteria or instructions relating to liquidation that are contained in the judgment. Let’s imagine that after the judgment analysis step, the need for liquidation arises, or we find that the calculations are not included in the final instrument. Once we have analyzed the instrument and come to the conclusion that the sentence does not reveal how the settlement should be carried out, and even more so, there is no element that deduces what the correction or interest index to be applied should be, this would lead to the analysis and proceeding with the calculations, if it is by calculations of the creditor, the instructions of the sentence must be followed to calculate the amount due by applying formulas, interest rates, monetary corrections and other parameters as directed.

Appointment of an expert or arbitrator i.e. settlement by arbitration!

In the case of the appointment of an expert or arbitrator, i.e. settlement by arbitration, it is necessary for the parties to contribute to the outcome of the dispute, since the third party must bring a technical, unbiased view based on parameterized knowledge that forms part of a list of instruments known to the technical teams of the judiciary, which seeks to support the judge’s decision-making. After overcoming the stages presented and making the adjustments to methodologies and analysis techniques, we have the presentation of the settlement, which is a process and as such the stages are contiguous and fluid in order to reach the objective. Detail the evidentiary documents and information to the court or the opposing party, as required by the settlement procedure.

To close this front, we are still left with the monitoring and resolution of disputes, i.e. the party must be prepared to respond to questions, objections or challenges related to the settlement presented. Here, the most important thing is to reach a consensus on the value of the settlement, using transparency as one of the basic elements to ensure a successful and fair conclusion.

Even though we’ve reached the settlement stage and the analysis of the instrument is closed, is it possible to contest the settlement of the judgment? Be aware that the procedure is legal, and the opposing party does not always agree with the calculations presented. In other words, disagreement is protected, allowing the liquidation to be contested. To do so, the disagreeing party must identify the specific reasons for the contestation, which may include disagreement with the calculations or application criteria, interpretation of calculations or formulas.

For this phase to be taken into account, a petition or application must be filed detailing the reasons for contesting, amending or correcting. This petition must be legally grounded, supported by laws, case law or doctrine that foresees the revision of the liquidation. The effects of this challenge are the notification to file a counterclaim and a defense, if they wish, and the court may schedule a hearing to analyze the arguments, conforming to the settlement, suggesting adjustments to the calculations or ordering a new settlement.

The liquidation of a judgment is propositional, as presented in the dictionary, etymological origin of the word, liquidar+ção

After this journey through the formative process and presentation of the initial and intermediate phases, we come to the final phase of the judicial process, where the others, as well as this one, are essential to support the settlement of the judgment, in which the exact amount to be paid or compliance with the judicial judgment is determined.

The liquidation of a judgment is propositional, as presented in the dictionary, etymological origin of the word, liquidar+ção, (Priberam)

1. Act of liquidating,

2. Clearance of accounts,

3. Payment,

4. Commercial operation consisting of paying off debts and dividing the remaining assets between the partners.

Judgment settlement can take place in various ways, depending on the instruction provided in the court decision, where the precise amounts to be met by the losing party and actions to be taken by the plaintiff are calculated.

In the same vein, the settlement of a judgment may involve calculations by the creditor, arbitration or its own means, as indicated by the court decision or judgment.