Judgment creditors often need to know how to collect an out-of-state judgment (also referred to as a foreign judgment) in Florida. When a creditor obtains a judgment in another state, and the judgment debtor is located in Florida, or assets that the judgment creditor seeks are located in Florida, the foreign judgment must be “domesticated” in Florida. Once the foreign judgment is domesticated in Florida, the judgment creditor can pursue post-judgment collection efforts within the state.
This article explains the process for domesticating a foreign judgment in Florida, which is a condition precedent to post-judgment collections efforts within the state.
Florida Enforcement of Foreign Judgments Act
The Process for Domestication
Sections 55.501-55.509 of the Florida Statutes are referred to as the Florida Enforcement of Foreign Judgments Act. This Act governs the enforcement of U.S. foreign judgments in Florida.
The following steps are necessary for domesticating a U.S. foreign judgment in Florida:
- Obtaining a final judgment in another state (referred to as the “foreign judgment”).
- Obtaining a certified copy of the foreign judgment.
- Filing and recording the following in the Florida county where the judgment debtor or the subject property is located:
- An affidavit to domesticate the foreign judgment.
- A certified copy of the foreign judgment, which must also be recorded in the county.
- Notice of registration of foreign judgment.
Once the above steps are completed, the Clerk will mail notice to the judgment debtor. §55.505(2). It is prudent for the judgment creditor to also mail notice to the judgment debtor. §55.505(2).
Once the notice of registration of foreign judgment has been sent to the judgment debtor, the judgment debtor then has 30 days to file an action contesting the validity of the foreign judgment. §55.509. If the debtor fails to timely contest the validity of the foreign judgment, then the Clerk will issue a foreign judgment certificate confirming that the judgment debtor has not objected to the domestication. A foreign judgment does not operate as a judgment lien in Florida until 30 days after the mailing of notice by the clerk. §55.507. After a foreign judgment is domesticated in Florida, it holds the same status as a judgment issued by a Florida court.
Contesting Domestication of the Foreign Judgment
Within thirty days after the date the foreign judgment is recorded, the judgment debtor may file an action (1) contesting the jurisdiction of the court which entered the foreign judgment, or (2) contesting the validity of the foreign judgment. §55.509. The judgment debtor must also record a Lis Pendens directed towards the foreign judgment. §55.509. If the judgment debtor files such an action and records a Lis Pendens, the court must stay enforcement of the foreign judgment and the judgment lien. Thereafter, if the debtor shows the court any grounds upon which enforcement of the judgment should be stayed, the trial court must stay enforcement of the judgment. However, the judgment debtor must provide appropriate security (e.g., a bond) for satisfaction of the judgment. §55.509(2).
Examples of reasons for contesting the enforcement of a foreign judgment include:
- The foreign court did not have jurisdiction over the debtor
- The foreign judgment is not a “final judgment”
- The foreign judgment is on appeal
- Evidence of fraud or collusion
In sum, a judgment debtor has the ability to stall (or sometimes completely stop) the enforcement of a foreign judgment in Florida. However, the burden is on the judgment debtor to prove why the foreign judgment should not be domesticated. Additionally, the requirement for providing appropriate security (e.g., a bond), is a checks-and-balances approach for preventing baseless stays to enforcement of a foreign judgment in Florida.
Enforcement of a Domesticated Foreign Judgment
Once a foreign judgment is domesticated in Florida, it has the same effect as a judgment that is issued by a Florida court. Thereafter, the judgment creditor may attempt to collect on the judgment. The collections efforts that a judgment creditor has available are exhaustive and are too voluminous to explain in this article. Nevertheless, a judgment creditor should consider the following:
- Post-judgment discovery (to locate assets and people)
- Depositions in aid of execution
- Writs of garnishment (against banks/financial institutions)
- Continuing writs of garnishment against salary and wages
- Attaching/executing on personal and real property
- Pursuing proceedings supplementary
- Pursuing fraudulent transfers
- Impleading third-parties
Conclusion
The process for domesticating a foreign judgment in Florida is outlined in the Florida Enforcement of Foreign Judgments Act. A judgment creditor needs to strictly comply with the Act in order to domesticate a foreign judgment in Florida.
About the Author: Austin T. Hamilton, Esq. is board certified in business litigation by the Florida Bar. Mr. Hamilton is experienced in domesticating U.S. foreign judgments and out-of-country foreign judgments in the State of Florida and has significant experience collecting difficult judgments, including using proceedings supplementary and pursuing fraudulent transfers.