1. Click master to insert date Click master to add name Debt Collection and Enforcement of Judgments Kimberley D. Caines Associate MJM Limited kcaines@mjm.bm

2. Disclaimer  The following is a cursory overview on the debt recovery process and the enforcement of money judgments. Time will not permit us to delve deeper into the various sub-topics.

4. Overview  Debt Recovery Process  Types of Claims  Types of Judgments  After the judgment…  Magistrate’s Court  Supreme Court  Court’s Approach  Practical Tips

5. Debt Recovery Process  Two Courts that deal with Debt Recovery in Bermuda Magistrate’s Court (any claims up to $25,000) › Civil Court Supreme Court (any claims over $25,000) › Commercial Court › Civil Court 1

6. Debt Recovery Process cont’d  Magistrate’s Court Ordinary Summons Judgment Summons Warrant of Arrest Committal to Prison Writ of Execution 1  Supreme Court Writ of Summons Process more involved

7. Types of Claims 2  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text  Money Claims  Personal Injury  Breach of Contract or Agreement  Landlord and Tenant  Employment Matters (wrongful dismissal)  Construction Claims  Service invoices

8. Types of Judgments 2  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text  Two Types of Judgments which can be obtained:  Judgment on Merit or Fact  Default Judgment  A judgment may be liable to being:  Set-aside; or  Appealed to a higher court  [there are certain parameters: such as time limit and points of law which apply]  Judgments attract interest per annum at the statutory rate of 5% (Mag Ct) or 7% (Supreme Court)

9. You have a judgment now what?  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text 3  Common misconception that money will automatically flow from the judgment once obtained  Often times a money judgment will have to be enforced (assistance by lawyers will facilitate this process)

10. Magistrate’s Court  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text 4  Procedure is guided by the Magistrate’s Court Act 1948, the Magistrate’s Court Rules 1973 and the Debtor’s Act 1973.  Enforcement of Judgments  Judgment Summons  Attachment of Earnings  Writ of Execution  Default Clauses

11. Supreme Court  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text 5  Procedure is guided by the Rules of the Supreme Court 1985 and the Debtor’s Act 1973  Writ of fieri facias  Examination of Judgment Debtor  Garnishee Proceedings  Judgment Summons  Committal to Her Majesty’s Prisons  Writ of Possession (mortgagor/ mortgagee matters)

12. Court’s approach  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text 6  The court has to balance both sides (debtor and creditor) when enforcing judgments.  Court has a discretion in whether to order a particular remedy of enforcement that is being sought  Wording of court rules is typically: may  Court is understanding of current economic climate  Judgments (Reciprocal Enforcement) Act 1958  Ability to enforce judgments in certain other jurisdictions

13. Practical tips to safeguard your Business  CLICK HERE TO ADD TITLE Click here to add text › Click here to add text Click here to add text 7  Obtain proper legal advice to draft and review contracts and agreements BEFORE executed  Obtain as many details of the individual (name, address etc)  When possible obtain security from individuals – value of security cannot be underestimated  Consider whether there are other secured creditors  Keep proper track of payments made on debts  Keep track of debts/ secure internal accounting guidelines  Be mindful of time limit to bring a claim

14. Any Questions? 8