What it means
The word comes from the idea of a written command, and writs have a long history in common law systems. A court issues the writ in its own name, and it carries the authority of the court behind it.
Ignoring it can lead to penalties, additional costs or enforcement action. Writs come in many types.
A writ of summons starts a lawsuit by telling the defendant that a claim has been made against them, while enforcement writs are issued after a judgment to help the winning party collect. Others, such as a writ of attachment or a writ of seizure and sale, are aimed at property.
For a business, the practical importance depends on which side of the writ it is on. A company that is owed money may ask a court for a writ to enforce its judgment against a customer who will not pay.
A company that receives one may find its bank accounts frozen, goods seized or sales of assets forced, which can threaten its ability to trade. Finance teams should know the procedure for dealing with legal documents.
All court papers should be logged the day they arrive and sent straight to the legal adviser, because deadlines for responding can be short. The accounts may also need to record a provision (an amount set aside for a probable loss) or disclose a contingent liability if the claim is likely to succeed.
The nuance is that the name, form and effect of writs differ between countries and sometimes between regions of the same country. Some places have replaced traditional writs with other types of court order, so local rules decide exactly what a writ can do and how it is served.
Costs and timing are worth planning for. Legal action takes months, court fees and solicitor charges add up, and a debtor may settle at the last moment.
Credit control teams therefore weigh the size of the debt against the likely cost before deciding to start, and many agree a clear escalation policy so that no one has to improvise.
In practice
Real-world examples.
Example
A supplier is owed $85,000 by a retailer that has ignored repeated reminders. The supplier sues, and the court issues a writ of summons that is served on the retailer, starting the legal process. Securing the judgment at that stage costs the supplier a further $2,500 in fees.
Example
A construction company wins a court judgment against a client for unpaid work. It asks the court to issue an enforcement writ so that the client's equipment can be seized and sold to pay the debt. The officer must follow strict rules about what can be taken.
Example
A small manufacturer receives a writ at its premises on a Friday afternoon. The finance director sends it to the company's solicitor that same day and notes the deadline for responding in the legal calendar. The solicitor replies within two days, well inside the response period.
Case study
Seen in the real world.
Pinecrest Joinery is an illustrative, fictional furniture maker that was owed $48,000 by a hotel group for a fit-out. After months of promises, the owner instructed a solicitor to begin proceedings, and the court issued a writ that was served on the hotel group.
The hotel group did not respond within the required time, so Pinecrest obtained judgment in its favour. Because the hotel still did not pay, the solicitor then obtained an enforcement writ, and an officer of the court visited the hotel to seize assets. The threat was enough to bring the hotel's finance team to the table, and it paid $48,000 plus costs of $4,500.
The illustrative lesson for Pinecrest's bookkeeper was that the early cost of legal action was small compared with the debt, and that keeping clear records of the contract, the delivery and the reminders made the claim straightforward.
Watch out
Common mistakes.
- Ignoring a writ in the hope that it will go away, which can result in judgment being entered without the company ever presenting its case.
- Letting legal papers sit in a general inbox, so the response deadline passes before anyone reads them.
- Assuming a writ proves the claim is valid, when it only starts or enforces a legal process and the claim can still be challenged.
Questions
People also ask.
Is a writ the same as a summons?
Not exactly, because a summons orders a person to appear or respond, while a writ is a broader term for a formal court order that can start or enforce a claim. The exact name and form depend on the country and the court.
What should a company do on receiving a writ?
Log the date it was received, send it to the legal adviser immediately and diarise every deadline for a response. Never contact the other side directly without taking advice.
Can a writ affect the accounts?
Yes, it may require a provision or a disclosure of a contingent liability if the outcome is likely or possible.
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