If the defendant fails to answer within the specific timeframe, the court will enter a default against the defendant and all allegations are assumed to be true—meaning the defendant essentially loses the case and is found liable. The court can then issue a default judgment to award money and possibly attorneys’ fees and interest to the plaintiff.
Scheduling
After a defendant has been served with a summons and answers the complaint, attorneys meet to plan out a series of deadlines, scheduling an exchange of information relevant to the case, as well as the possibility of settling without a trial.
At this stage, De Falco notes, “The main job of the court is to try to facilitate more discussions.” If no settlement can be agreed upon, the parties will submit a schedule of agreed deadlines for the case. This, he notes, is “the nitty gritty of any dispute.”
Discovery
Once the court has accepted the plans and schedules made by the attorneys, the discovery stage begins. Attorneys are required by law to provide some information automatically such as witness names, copies of relevant documents, etc.
Other information is provided by request of one side or the other such as answers to questions submitted in writing, specific documents, or admissions or denials of statements.
This stage also includes depositions, or testimony under oath by a witness, usually in a lawyer’s office or other informal setting without a judge. A court reporter records the testimony, which can later be used against an individual if information contradicts testimony at trial.
“Discovery is intended to get everything out in the open,” De Falco explains, including any written correspondence exchanged between the parties that can affect “the validity of a client’s PACA trust claim.” From the perspective of an attorney, De Falco finds this stage can yield new information even about one’s own client. “You see things you may not have seen before,” he explains, adding, “you want to know the risk ahead of time rather than learning it down the road at trial. If you find something that can impact your client, you want to find ways to minimize the damage.”
Dispositive motions
Once all the facts are established, each side can determine if the case should go to trial or whether to file a dispositive motion. If no facts are in dispute, either side may ask the judge to issue a summary judgment—i.e., a judgment without further proceedings because of the absence of any genuine issue of material facts. The side making a motion for summary judgment hopes to avoid the time, trouble, and expense of a trial. For example, if the defendant does not deny the money is owed, additional discovery and trial preparation may not be necessary.
If the judge grants the summary judgment motion, the case (or one issue within the case) will be decided based on the facts presented. If the judge denies the motion, the case proceeds to trial. Both sides, however, may be ordered to attend a settlement conference to try and resolve the case without a trial.
