Since my recent vlog about Bo Jackson giving up a $31 million judgment against his niece and nephew, I’ve received a few questions about the vlog that I thought were worth sharing (thank you for those questions, and your interest in the video!)
Here are the questions that I’ve received and my answers:
- Did Bo actually return $31 million to his niece and nephew?
No, Bo never obtained the $31 million. What Bo obtained was a $31 million judgment, not the actual cash. Had it stood, Bo’s judgment gave him the ability to collect $31 million from his niece and nephew and their available assets. Enforcing a judgment can involve liening a debtor’s assets, such as real property or other tangible assets and executing levies on the debtor’s bank accounts. By agreeing to a new judgment that involved no award of money, Bo gave up the right to enforce his initial award of $31 million.
- I realize Bo consented to a new judgment and let his niece and nephew out from under the obligation to pay him $31 million, but is it possible to re-open a default judgment when the other side does not consent to re-opening the case?
Good question. It is possible to re-open or vacate a default judgment, however it is not easy. A debtor would have to meet the applicable standard for vacating a default judgment which can vary depending on the laws of the State wherein the default judgment was entered against the debtor. For example, in New York State, in order to vacate a default judgment a debtor must show: 1) a reasonable excuse for their failure to appear and answer the complaint; and 2) that the debtor has a meritorious defense to the claim(s) against them such that if the case were re-opened the debtor could prevail on the merits. If the debtor is able to convince the court that they meet this two-pronged standard, keep in mind that’s only the beginning. The debtor must be ready to defend the action against them as the case will begin anew. Also keep in mind that there is a deadline or statute of limitations for a debtor to challenge a default judgment.
- If Bo had obtained both the right to collect $31 million and the restraints against his niece and nephew, why would he agree to a new deal that left only the restraints in place? That sounds like a loss for Bo. Why would he agree to such a deal?
At this point we can only speculate as to Bo’s true motivations. A few ideas come to mind though. Perhaps Bo knew, or had a strong suspicion, that he would never be able to collect on the $31 million judgment, and that the true value of the judgment lay in the no harassment provisions. Perhaps Bo also felt that his niece and nephew would be more likely to abide by the no harassment provisions if they were incentivized to do so. In other words, they would leave Bo alone if they received relief from the $31 million obligation. But that’s just my speculation. Only “Bo Knows”.