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If you have a judgment from a foreign court, learning how to enforce it in the United States is critical. This guide breaks down the essential legal principles, the role of the Uniform Recognition Act (UFCMJRA), mandatory and discretionary grounds for non-recognition, and the crucial concept of comity for individuals and businesses engaged in international asset recovery.
The globalized nature of modern business and personal life means that legal disputes often transcend national borders. When a court in a foreign country—known as the rendering jurisdiction—issues a judgment, the successful party may need to enforce that decision against assets held by the debtor in the United States. This process is not automatic and is governed primarily by state law, guided by principles of international legal practice. Understanding the requirements for the recognition of foreign judgments is the crucial first step in any cross-border enforcement strategy.
Unlike judgments between U.S. states, which are automatically subject to the Constitution’s Full Faith and Credit Clause, judgments from foreign nations do not receive mandatory recognition. Instead, U.S. courts treat them based on state law and the doctrine of comity.
The United States is not a signatory to any bilateral treaty or multilateral convention on the reciprocal recognition and enforcement of foreign judgments. This absence of a federal framework means the law governing recognition is almost entirely a matter of individual U.S. state law, although all states draw from a common foundation.
Comity, or comitas gentium, is the foundational legal principle established by the U.S. Supreme Court in the 1895 case of Hilton v. Guyot. It is the recognition one nation allows within its territory to the judicial acts of another nation, having due regard both to international duty, convenience, and the rights of its own citizens. It is neither an absolute obligation nor mere courtesy, but a matter of discretion guided by legal standards.
To standardize the process across the U.S., most states have adopted one of two versions of a uniform law. These acts codified the common law principles of comity, providing a clear path for creditors:
Both acts apply only to judgments “granting or denying recovery of a sum of money.” They specifically exclude judgments for taxes, fines, penalties, or domestic relations matters like divorce and child support. The judgment must be “final, conclusive, and enforceable” where it was rendered.
Under both the UFMJRA and the UFCMJRA, a U.S. court must not recognize a foreign judgment if the party opposing recognition can establish one of the following fundamental failures:
These are core constitutional concerns that override the principle of comity.
A U.S. court may choose to deny recognition based on several other grounds. The court has discretion and weighs these factors carefully:
| Ground | Explanation and Impact |
|---|---|
| Insufficient Notice | The defendant did not receive notice of the foreign proceedings in sufficient time to enable them to defend. |
| Fraud | The judgment was obtained by “extrinsic” fraud that deprived the losing party of an adequate opportunity to present their case (e.g., concealing evidence or preventing participation). |
| Public Policy | The cause of action or the judgment itself is “repugnant” to the public policy of the recognizing state or the United States. (A common example is refusing to enforce excessive punitive or multiple damages.) |
| Conflicting Judgment | The foreign judgment conflicts with another final and conclusive judgment. |
| Anti-Libel Provision (The SPEECH Act) | U.S. law prohibits recognition or enforcement of foreign libel judgments unless the foreign law provides at least as much protection for free speech as the U.S. First Amendment. |
The process of enforcing a foreign judgment in the U.S. requires two distinct steps: recognition and then enforcement.
Legal Tip: Recognition vs. Enforcement
Recognition is the act of the U.S. court acknowledging the foreign judgment as valid, giving it res judicata effect—meaning the issues decided abroad cannot be relitigated. Enforcement is the subsequent legal action taken to seize the debtor’s assets (e.g., garnishment, judicial sale) once the foreign judgment has been converted into a domestic one.
A party seeking to enforce a foreign judgment must commence a new action in a competent U.S. state court (or a federal court based on diversity jurisdiction). This lawsuit is not a retrial of the underlying merits of the original case. Instead, the U.S. court reviews the foreign judgment against the statutory or common law criteria (primarily the mandatory and discretionary grounds for non-recognition).
If the U.S. court grants recognition, the foreign judgment is converted into a domestic judgment of that state. At that point, the judgment creditor can use all the state’s domestic enforcement remedies to collect on the debt, provided they can establish jurisdiction over the debtor or their assets.
A business in Country A won a $5 million breach of contract judgment against a U.S.-based corporation. The U.S. corporation refused to pay. The Country A business filed an action in the New York State Supreme Court (a UFCMJRA state) seeking recognition. The U.S. corporation argued that the foreign court made a legal error on the merits of the contract. The New York court refused to retry the contract dispute, found no mandatory grounds for non-recognition (due process was sufficient, jurisdiction was proper), and recognized the judgment. The judgment then became a New York judgment, allowing the Country A business to initiate garnishment proceedings against the U.S. corporation’s bank accounts in New York to recover the $5 million.
For individuals or companies navigating international debt recovery, the process of gaining local enforceability is systematic, though not always simple. Here are the core takeaways:
Seeking to recognize a foreign judgment is a specialized area of law. A seasoned Legal Expert can assess the jurisdictional basis of the foreign court and evaluate potential non-recognition defenses, significantly improving the chances of successful asset recovery. Do not assume automatic recognition; strategic action in the appropriate state court is essential.
A: The original U.S. Supreme Court ruling in Hilton v. Guyot included a reciprocity requirement. However, a majority of U.S. jurisdictions have since abandoned this requirement. A minority of states have expressly added reciprocity back into their local version of the Uniform Act. Therefore, the rule depends on the specific U.S. state where recognition is sought.
A: No. The Uniform Foreign-Country Money Judgments Recognition Act (UFCMJRA), adopted by most states, specifically excludes judgments for taxes, fines, or other penalties from recognition.
A: U.S. courts typically refuse recognition only for extrinsic fraud, which is fraud that deprives the losing party of an opportunity to present their case (e.g., fraudulent service of process). Intrinsic fraud (e.g., false testimony or falsified documents presented during the foreign trial) is generally insufficient grounds to deny recognition, as it is considered part of the merits that the foreign court should have resolved.
A: The Uniform Acts define a judgment as “final and conclusive” even if an appeal is pending or subject to appeal. If an appeal is pending, the U.S. court has the discretion to stay (pause) the recognition and enforcement proceedings until the appeal in the foreign jurisdiction is concluded.
Recognition of foreign judgments, Enforcement of foreign judgments, Uniform
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