As the financial capital of the world, judgments from other jurisdictions are often obtained against New York residents. Once a money judgment is obtained, the next step is enforcing the judgment in New York. Creditors must commence an action in New York to enforce or domesticate the foreign judgment, whether the judgment is from a sister-state or a foreign country. Foreign and out-of-state judgments are often domesticated in New York state court in a streamlined procedure known as summary judgment in lieu of complaint under C.P.L.R. § 3213. Once domesticated, the creditor has access to a variety of enforcement options to recover on the judgment.
There are a number of defenses to an action to domesticate a foreign judgment. For foreign country judgment, New York courts will not recognize the judgment if it was rendered under a system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law or if the foreign court did not have personal jurisdiction over the defendant. N.Y. C.P.L.R. § 5304(a). Other defenses can be found in C.P.L.R. § 5304(b).
Once the judgment is domesticated, a foreign money judgment is treated as if it were a New York judgment. Therefore, among other things, a judgment creditor with such a judgment can utilize New York’s post-judgment discovery and judgment enforcement procedures. In addition, the newly domesticated judgment begins to accrue interest at New York’s statutory 9% post-judgment interest rate from the date of domestication.
Contact us for more information.
There are a number of defenses to an action to domesticate a foreign judgment. For foreign country judgment, New York courts will not recognize the judgment if it was rendered under a system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law or if the foreign court did not have personal jurisdiction over the defendant. N.Y. C.P.L.R. § 5304(a). Other defenses can be found in C.P.L.R. § 5304(b).
Once the judgment is domesticated, a foreign money judgment is treated as if it were a New York judgment. Therefore, among other things, a judgment creditor with such a judgment can utilize New York’s post-judgment discovery and judgment enforcement procedures. In addition, the newly domesticated judgment begins to accrue interest at New York’s statutory 9% post-judgment interest rate from the date of domestication.
Contact us for more information.
Copyright: gstockstudio / 123RF Stock Photo