What is determined in a default judgment?

• A. An agreement made out of court
• B. An assessment of damages owed by the insurer
• C. A ruling favoring one party due to the absence of the other
• D. A determination of fraud in the next court hearing

Answer: (C)

In a default judgment, the court issues a ruling favoring one party because the other party failed to respond or appear in court. This typically occurs in civil cases when the defendant does not answer the complaint or fails to show up for the hearing, leading the court to assume that the plaintiff's claims are valid. As a result, the court will often grant the judgment requested by the plaintiff, as there is no contesting evidence or argument from the defendant.

This process streamlines legal proceedings by allowing plaintiffs to obtain relief even when the opposing party neglects to engage in the process. It reflects the obligation of all parties to participate in legal proceedings and emphasizes the importance of responsiveness in the judicial system.

In this context, the other options do not accurately capture the essence of a default judgment. An agreement made out of court relates to settlements rather than judicial decisions. An assessment of damages owed by the insurer involves evaluative processes usually conducted with both parties present. A determination of fraud in the next court hearing implies a future proceeding rather than an immediate judgment based on default.