Collecting a Foreign Country Judgment

A money judgment entered by a court outside the United States has no automatic force in New York. Before a creditor can restrain a bank account, place a lien on real estate, or send a sheriff to levy on assets located here, the foreign country judgment must first be recognized by a New York court. Only after recognition does the judgment become enforceable through the same powerful collection remedies available to holders of New York judgments.

New York is one of the most important venues in the world for this process. Enormous volumes of capital flow through New York banks, and debtors who successfully hide assets abroad frequently hold accounts, securities, receivables, or real property within reach of the New York courts. Our firm represents foreign and domestic creditors in every stage of this process — from the recognition proceeding itself through aggressive post-recognition judgment enforcement.

The Governing Statute: CPLR Article 53

Recognition of foreign country money judgments in New York is governed by CPLR Article 53, New York's enactment of the Uniform Foreign Country Money Judgments Recognition Act. The Legislature substantially revised and modernized Article 53 in 2021, adopting the 2005 version of the uniform act. The key provisions are:

• CPLR 5301 — definitions, including what counts as a "foreign country judgment"
• CPLR 5302 — the scope of the article and which judgments qualify
• CPLR 5303 — the procedure for obtaining recognition and the statute of limitations
• CPLR 5304 — the mandatory and discretionary grounds for refusing recognition
• CPLR 5305 — the bases of personal jurisdiction New York will accept
• CPLR 5306 — the effect of recognition: the judgment becomes enforceable "in the same manner and to the same extent as a judgment rendered in this state"
• CPLR 5307 — stays pending appeal in the country of origin

Understanding how these sections interact is the difference between a fast, efficient recognition proceeding and a case that stalls for years on avoidable procedural objections.

Which Foreign Judgments Qualify Under CPLR 5302

Under CPLR 5302(a), Article 53 applies to a foreign country judgment that:

1. Grants or denies recovery of a sum of money, and
2. Is final, conclusive, and enforceable under the law of the country where it was rendered.

Importantly, a judgment can be "final and conclusive" even if an appeal is pending abroad. Under CPLR 5307, the New York court has discretion to stay the recognition proceeding until the foreign appeal concludes, but the pendency of an appeal does not by itself defeat recognition.

Judgments Excluded from Article 53

CPLR 5302(b) excludes three categories from the article, even when they award money:

• Judgments for taxes
• Fines and other penalties
• Judgments for divorce, support, or maintenance, or other judgments rendered in connection with domestic relations

Under CPLR 5302(c), the party seeking recognition bears the burden of establishing that the judgment falls within the article. In practice, this means the creditor's moving papers should include a certified or exemplified copy of the foreign judgment, a certified English translation, and proof — usually an affidavit from foreign counsel — that the judgment is final, conclusive, and enforceable where rendered. Assembling this evidentiary package correctly at the outset prevents the most common early-stage objections.

How Recognition Is Obtained: CPLR 5303

Unlike the streamlined clerk-filing process available for domesticating a foreign judgment in New York, a foreign country judgment cannot simply be filed with the county clerk. CPLR 5303 requires a judicial proceeding. Recognition may be raised:

• As an original action on the foreign judgment (CPLR 5303(b)), or
• As a counterclaim, cross-claim, or affirmative defense if recognition is sought within a pending New York action (CPLR 5303(c)).

The CPLR 3213 Shortcut: Summary Judgment in Lieu of Complaint

Because a foreign country money judgment qualifies as "a judgment" under CPLR 3213, the creditor can commence the action by serving a summons with a motion for summary judgment in lieu of complaint rather than a conventional complaint. This is almost always the preferred route: it skips the pleading stage and puts the merits before a judge immediately.

The mechanics matter. The motion's return date must give the debtor at least the time to appear provided by CPLR 320(a) — generally 20 days if the summons is delivered personally within New York, or 30 days if service is completed by other means or outside the state. If the debtor raises no triable issue under the limited defenses available in CPLR 5304, the court grants summary judgment and directs entry of a New York judgment.

A Worked Example

Suppose a foreign commercial court entered a final judgment for the equivalent of $2 million on March 1, 2023, against a debtor who maintains a brokerage account in New York. Working with our firm, the creditor:

1. Obtains an exemplified copy of the judgment and a certified translation (weeks 1–3);
2. Files a summons and CPLR 3213 motion in Supreme Court, supported by an affidavit of foreign counsel attesting to finality and enforceability, and serves the debtor (weeks 3–6);
3. Sets a return date at least 30 days after completion of service on the out-of-state debtor;
4. If unopposed or if opposition raises no statutory ground for non-recognition, obtains an order recognizing the judgment and enters a New York judgment — often within four to six months of filing.

The moment the New York judgment is entered, the full arsenal of CPLR Article 52 enforcement devices becomes available.

The Deadline: CPLR 5303(d)'s Statute of Limitations

The 2021 amendments added a clear limitations rule. Under CPLR 5303(d), an action for recognition must be commenced within the earlier of:

• The period during which the judgment remains effective in the country where it was rendered, or
• Fifteen years from the date the judgment became effective in that country.

Two examples show how this works:

• Example 1: A foreign judgment became effective on June 1, 2020, and under the law of the rendering country it remains enforceable for 10 years — until June 1, 2030. Because 10 years is shorter than 15, the New York recognition action must be commenced by June 1, 2030.
• Example 2: The same judgment is enforceable for 25 years in its country of origin. The 15-year cap controls, so the New York action must be commenced by June 1, 2035.

Because the deadline depends on foreign law, creditors should not assume they have 15 years. Some legal systems extinguish judgments in six years or less. We evaluate the foreign limitations period with local counsel at the outset of every engagement so the New York filing is never at risk.

Defenses to Recognition: CPLR 5304

The debtor cannot relitigate the merits of the underlying dispute. The New York court does not ask whether the foreign court got the case right — it asks only whether one of the statutory grounds for non-recognition exists. Under CPLR 5304(c), the debtor bears the burden of establishing any such ground.

These defenses are narrow by design. New York courts have repeatedly emphasized that Article 53 was enacted to promote the efficient enforcement of foreign judgments and to assure foreign creditors that their judgments will be honored here. Generalized complaints about the foreign legal system or dissatisfaction with the outcome do not qualify.

Personal Jurisdiction: CPLR 5305

Because lack of personal jurisdiction is a mandatory ground for non-recognition, CPLR 5305 lists bases of jurisdiction New York will accept as sufficient, including: personal service in the foreign country; voluntary appearance (other than to contest jurisdiction or protect seized property); prior agreement to submit to that court's jurisdiction; the debtor's domicile or principal place of business there; a business office there where the claim arose from that office's activity; and operation of a motor vehicle or airplane there where the claim arose from that operation. The statute also permits courts to accept other bases of jurisdiction. If your foreign judgment fits one of these categories, the most potent mandatory defense is off the table.

After Recognition: Turning the Judgment Into Money

Under CPLR 5306, a recognized foreign country judgment is enforceable in the same manner and to the same extent as a New York judgment. That unlocks Article 52 of the CPLR, the enforcement toolkit we deploy in every judgment collection matter:

• Restraining notices (CPLR 5222) — served on banks and other third parties, freezing up to twice the judgment amount without any court appearance
• Information subpoenas and depositions (CPLR 5223, 5224) — compelling the debtor and third parties to disclose assets under oath through a judgment debtor examination
• Property and income executions (CPLR 5230, 5231, 5232) — directing the sheriff to levy on personal property, real property, and wages
• Turnover proceedings (CPLR 5225, 5227) — special proceedings compelling the debtor or third parties, including banks and transferees, to deliver assets or pay debts owed to the debtor
• Real property liens (CPLR 5203) — docketing the judgment with the county clerk creates a lien on the debtor's real property in that county for ten years

A New York money judgment is enforceable for twenty years under CPLR 211(b), which frequently gives creditors far more time to collect than the judgment enjoyed in its country of origin.

Currency Conversion and Interest

Foreign judgments are usually denominated in foreign currency. Under Judiciary Law § 27(b), a New York judgment based on an obligation denominated in a foreign currency is entered in that currency and converted to U.S. dollars at the rate of exchange prevailing on the date of entry of the New York judgment. Timing therefore has real economic consequences: a strengthening or weakening dollar between recognition and entry can move the recovery by a meaningful percentage. Once the New York judgment is entered, post-judgment interest accrues at New York's statutory rate of 9% per year under CPLR 5004 — often far more favorable than the rate available in the country of origin.

Strategic Considerations Before You File

• Asset investigation first. Recognition is a means to an end. Before filing, we investigate whether the debtor holds accounts, securities, receivables, real estate, or business interests reachable from New York, so the recognition proceeding is aimed at real recovery.
• Anticipate the 5304 defenses. If the foreign proceeding was a default, expect the debtor to attack service and jurisdiction. Building the evidentiary record on notice and jurisdiction before filing shortens the fight considerably.
• Watch for pending foreign appeals. Under CPLR 5307, a court may stay recognition pending appeal abroad. Sometimes it is better to secure the New York proceeding early and litigate the stay; sometimes waiting is wiser. This is a case-by-case judgment call.
• Consider the debtor's corporate status. If the judgment debtor entity has been wound down, additional remedies may exist against successors or distributed assets, similar to the issues we address when collecting against a dissolved corporation in New York.
• Move quickly on restraints. Once the New York judgment enters, restraining notices should go out the same day. Sophisticated debtors monitor litigation dockets and move funds fast.

Why Experienced Counsel Matters

Recognition proceedings sit at the intersection of New York procedure, foreign law, and international asset tracing. Errors — an uncertified translation, an insufficient finality affidavit, a miscalculated CPLR 3213 return date, or a missed CPLR 5303(d) deadline — can cost months or forfeit the claim entirely. Our attorneys handle these proceedings regularly, coordinate with foreign counsel to prove up the judgment, and transition seamlessly from recognition to enforcement so that the debtor never gets breathing room to dissipate assets.

You can contact us by phone at 212-233-1233 or by email at [email protected].