Foreign Country Money Judgment Actions Now Face Due Process Hurdle in New York
Foreign judgment creditors may now consider domesticating their judgments in states with broader recognition than New York, and foreign judgment debtors may now consider whether any foreign judgment against them is compatible with due process under New York standards.
December 09, 2022 at 02:20 PM
8 minute read
Creditors' and Debtors' RightsIn 2021, New York significantly expanded its Recognition of Foreign Country Money Judgments Act (found in CPLR Article 53) (the Act) by granting New York judges wider discretion to refuse to recognize foreign country money judgments. The 2021 amendment to the Act adopts the Uniform Law Commission's 2005 model law (the 2005 Uniform Act) and brings New York in line with a growing number of states that have adopted the 2005 Uniform Act. The 2021 amendment is significant for foreign judgment creditors and debtors alike, because New York courts may now refuse recognition of a foreign judgment where the overseas proceedings did not comport with due process under U.S. law. Foreign judgment creditors may now consider domesticating their judgments in states with broader recognition than New York, and foreign judgment debtors may now consider whether any foreign judgment against them is compatible with due process under New York standards.
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