Friday, August 22, 2014
This story from the WSJ Law Blog falls right into the ContractsProf Blog sweet spot:
In October 2002, Los Angeles dentist Dr. Craig D. Gordon won a $1,605.73 default judgment against a 22-year-old former patient who was allegedly fitted with porcelain fillings to replace silver ones but never paid the bill.
The patient was Kim Kardashian, and nearly a dozen years later, Dr. Gordon has finally gotten his money back – with interest and an extra $1,500 thrown in. The twist is the money didn’t come from the now (in)famous Ms. Kardashian but from a California attorney who bought the uncollected judgment for $5,000 in an online auction that ended Thursday.
JudgmentMarketplace.com, a three-year-old site that gives creditors a forum for hawking uncollected debts, said the transaction marked the first time in the company’s history that the selling price for a listed judgment exceeded the total value of the principal and interest.
“Judgments usually sell for only pennies on the dollar,” said the site’s founder, Shawn Porat, a Manhattan resident.
He said the Kardashian judgment may have commanded a premium because of its novelty value. In other words, for $5,000, you can tell people at a cocktail party that a Kardashian is indebted to you.
Ms. Kardashian’s attorney, Todd Wilson, told Law Blog that she “never sought or received treatment by Dr. Gordon of any kind.”
The buyer, said Mr. Porat, could also expect the judgment to increase in value as more interest accrues. Under California civil procedure code, judgments automatically expire after 10 years, but before time runs out, a creditor may file a request for a 10-year renewal with the original court. And there’s no limit to how many times you can extend it.
“Although I wish she had just paid her bill like most of my clients do, I’m really glad to finally have closure on this incident,” Dr. Gordon said in a statement.
Interested in purchasing some celebrity debt of your own? WSJ Law Blog reports:
JudgmentMarketplace.com is also listing a $9 million wrongful death judgment against O.J. Simpson on behalf of Ronald Goldman’s mother, who is asking for at least $1 million. The 17-year-old judgment has accumulated more than $15 million in interest, according to the site.