An excess judgment is a court award that exceeds the defendant's insurance coverage limits, creating a situation where the at-fault party becomes personally responsible for paying the difference out of their own pocket. For example, if you win a $500,000 judgment but the defendant only has $100,000 in liability insurance, there's a $400,000 excess judgment that the defendant must pay from their personal assets like savings, property, or future income. This can be financially devastating for defendants who don't have enough money or assets to cover the full amount.
Excess judgments often occur in cases involving serious injuries where the damages are much higher than typical insurance limits, such as brain injuries, paralysis, or wrongful death cases. While winning an excess judgment means you legally deserve more money, actually collecting it can be challenging if the defendant doesn't have sufficient assets or income to pay. However, excess judgments don't disappear - they can often be collected over many years through wage garnishment, property seizure, or other legal collection methods, and the defendant typically cannot discharge this debt through bankruptcy if it resulted from intentional wrongdoing.
