Business Law: Domestication of Foreign Judgments

Q: What is a "“judgment domestication"?

A: Under Article IV, Section 1 of the U.S. Constitution, the Full Faith and Credit Clause, addresses the duties that states within the United States have to respect the "public acts, records, and judicial proceedings of every other state."

Practically speaking, if you have a judgment from another state or federal court outside of New York or New Jersey, we can help you bring that judgment into New York or New Jersey so that you can enforce it there against your debtor’s assets located within either state.

Generally speaking, the procedure for judgment domestication is relatively straightforward in both New York and New Jersey. In New York, however, there is a slightly different procedure required depending on whether the judgment was obtained on the merits or by default.

Domestication in New Jersey

The domestication process in New Jersey is similar to New York’s process for judgments on the merits even if the judgment was obtained by default. In either case, you just need to provide us with an exemplified copy of the judgment, and we will file an affirmation in support of our request. Once the judgment is domesticated, we serve the debtor with a Notice of Entry, and fourteen (14) days after that, you can proceed with efforts to enforce the judgment.

Domestication in New York (By Default Judgment)

The expedited procedure of New York CPLR § 5402 is not available when a foreign judgment is obtained by default or confession. Instead, we must file a motion for Summary Judgment in Lieu of Complaint pursuant to New York CPLR § 3213. While fairly straightforward, this method does involve additional preparation (e.g., motion drafting and personal service on the debtor) and carries with it an increased risk that the debtor will obtain local counsel to challenge the motion, potentially opening the door to additional litigation. On your end, the process is the same: we just need an exemplified copy of the judgment to get started.

Domestication in New York (By Judgments on the Merits)

According to Section 5402 of the New York Civil Practice Law and Rules CPLR), it provides that New York must offer full faith and credit to all sister state judgments and lays out an expedited procedure for domestication of judgment on the merits. The first step is for you, the client, to obtain what’s known as an exemplified, authenticated, or triple-sealed record of your out-of-state judgment from the court in which it was entered. This record will generally be signed and sealed by two to three people, including at least one judge or magistrate, at least one clerk. To avoid any misunderstanding when obtaining this document, you should explain to the clerk that you intend to file and enforce the judgment in another state. This should ensure that you are provided the proper type of record for this purpose. Please note: exemplified judgment copies are valid for ninety (90) days only. If your copy expires before it is filed in New York you will need to return to the court in your home state to obtain a new copy. While you obtain the exemplified copy of your judgment, we will simultaneously prepare an Affidavit and / or Affirmation in Support of our request for domestication. Once we have the exemplified copy of your judgment, we will promptly file both documents in New York in the county in which the judgment debtor’s assets are located. The Court then returns a copy of the judgment stamped as docketed in that county, and at that time, the judgment becomes a lien against the debtor’s assets.

For more information, please contact our office to schedule a consultation.