On February 21st, JOSHUA LEVIN-EPSTEIN offered a practical training on enforcing foreign country money judgments in New York. Mr. Levin-Epstein explained that Article 53 of the New York Civil Practice Law and Rules governs these types of matters, which are typically brought as motions for summary judgment in lieu of complaint and seek an order recognizing the foreign judgment. CPLR Article 53 provides for a relatively straightforward procedure. However, the speaker observed that for many litigants who have obtained a foreign money judgment the aggravation and expense of litigation often continues if the adversary engages in manufacturing meritless arguments that undermine the effective utility of Article 53.
Under Article 53, a foreign country money judgment can be enforced in New York if it is final, conclusive, and enforceable in the country in which it was rendered. Typically, the applicant will submit a supporting affidavit from a foreign attorney describing the legal system in which the judgment was issued to show that the judgment was rendered in compliance with due process bya fair and impartial tribunal. Significantly, the applicant will also need to show that the foreign court had personal jurisdiction over the party against whom it issued the judgment.
When seeking recognition under Article 53, it is not necessary for the New York court to have personal jurisdiction over the judgment-debtor, or for the judgment-debtor to have assets in New York. Once recognized by the New York court, a foreign money judgment is treated as if it were a New York judgment, and a judgment-creditor can utilize New York’s post-judgment discovery and judgment enforcement procedures. Mr. Levin-Epstein provided practical tips for attorneys seeking to enforce a foreign money judgment. He explained that the monetization of a foreign judgment involves a three-step process which includes: (i) the procedural and technical entry of the money judgment and service in accordance with the relevant procedural rules; (ii) the identification and location of the judgment debtor’s assets; and (iii) the enforcement of the judgment against the judgment debtor’s real and personal property in accordance with the relevant legal rules. He cautioned that judgment debtors may go to great lengths to frustrate the judgment creditor’s actual financial recovery, for example, by concealing assets in shell corporations, transferring money abroad, and otherwise secreting assets. Thus, the attorney representing the judgment-credit may need to conduct an investigation to identify the debtor’s assets and where they are located. Additional litigation may be necessary to seek an injunction to prevent the transfer of the assets or bring a claim for fraudulent conveyance.
