Enforcement and Recognition of Foreign Judgments in United States Courts: A Practical Perspective

Abstract

Lawyers have a tendency to focus on "winning" trials. Yet, enforcement of a hard-won judgment can be an equally important task. That task takes on an additional level of complexity when it must be done in a foreign country. It is also important to know the extent to which the judgment can be used defensively, if the prevailing party should be haled into the court of another country on a related matter.

Although often used interchangeably, the terms "enforcement" and "recognition" of foreign judgments refer to two distinct concepts. Enforcement occurs when a court compels a defendant to satisfy a judgment that has been rendered against him or her in the court of a foreign nation. While a court must recognize a judgment in order to enforce it, recognition may also occur independently of enforcement. Recognition occurs when a court precludes litigation of a claim or issue because that claim or issue was previously litigated in the court of a foreign nation. Most of this paper discusses factors relevant to both enforcement and recognition of foreign judgments. 

At present, the United States is not a party to any international agreements or treaties concerning enforcement or recognition of foreign judgments. Nor does the United States have any federal statutes governing the enforcement or recognition of judgments rendered in the courts of foreign nations. Traditionally, foreign judgments have been enforced or recognized on the basis of international comity under common law standards. These standards are generally governed by the laws of the state in which enforcement or recognition is sought.