Also known as: liquidated sums · sum certain
Written by attorneys · grounded in primary & secondary sources — see below
A monetary amount that is fixed in advance or capable of being determined with exactness through arithmetic computation from established facts or contract terms.
Lunar Dynamics sued Lattice Systems in federal court on a promissory note stating a fixed principal, interest rate, and maturity date. Lattice Systems was served but never appeared. Lunar Dynamics filed an affidavit totaling unpaid principal, accrued interest, and late fees. The clerk entered judgment for that computed amount and costs.
Lily Lopez contracted to sell gravel to Lotus Pharmaceuticals at the prevailing market price. After breach, the court found the market price was $8.25 per cubic yard. Once that rate was fixed, the total owed for the delivered quantity became computable with exactness. Lopez then recovered prejudgment interest on the resulting liquidated sum.
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A clerk must enter default judgment when the claim is for a sum certain or one that can be made certain by computation, the defendant has defaulted for not appearing, and the plaintiff supplies an affidavit showing the amount due, provided the defendant is neither a minor nor incompetent.
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No. Once the court resolves the rate dispute by finding the correct percentage or market price, the total amount owing can be computed with exactness and qualifies as a liquidated sum.
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Prejudgment interest is generally denied on claims that are neither liquidated as a dollar sum nor ascertainable by fixed standards because the amount due cannot be determined without further evidence or discretion.
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The clerk may enter judgment only for the sum certain supported by affidavit. Any additional amounts that require proof beyond computation must be presented to the court under Rule 55(b)(2).
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…for the contract to remove the rule of the common law that payment of a less sum cannot be a satisfaction of a greater liquidated sum, unless there is some further advantage accompanying the payment. The short question then is, in relation to a judgment debt payable immediately, and on which the creditor is entitled to…