Domestication of Foreign Judgments 102. How to Domesticate an Out-of-Country Foreign Judgment in Florida?

Businesses and individuals frequently obtain judgments in foreign countries against residents or businesses located in Florida. It is also common for debtors to flee to Florida after a judgment is entered against them in a foreign country. To collect the judgment in Florida, the creditor must domesticate the out-of-country foreign judgment in the State of Florida. This article explains the process for domesticating an out-of-country foreign judgment in Florida.

The Florida Enforcement of Foreign Judgments Act (Sections 55.501-55.509) versus the Uniform Out-of-Country Foreign Money-Judgment Recognition Act (Sections 55.601-55.607)

The terminology used in Chapter 55 can be confusing because of the term “foreign judgment”. The term “foreign judgment” is used in both Sections 55.501-55.509 and Sections 55.601-55.607. As such, it is important to understand the difference between Sections 55.501-55.509 and Sections 55.601-55.607.

Sections 55.501-55.509 are collectively referred to as the Florida Enforcement of Foreign Judgments Act. §55.501. This Act governs the enforcement of judgments obtained in another state within the United States.

On the other hand, Sections 55.601-55.607 are collectively referred to as the Uniform Out-of-Country Foreign Money-Judgment Recognition Act. §55.601. This Act governs the enforcement of foreign judgments obtained in a country outside of the United States.

While the domestication process is similar for both Sections 55.501-55.509 and Sections 55.601-55.607, there are key differences. As such, judgment creditors must follow the correct procedures when domesticating a foreign judgment.

In a prior article, I explained the domestication process under Sections 55.501-55.509. In this article, I explain the domestication process under Sections 55.601-55.607.

Uniform Out-of-Country Foreign Money-Judgment Recognition Act

The Domestication Process

The following steps are necessary for domesticating an out-of-country foreign judgment in Florida:

1. Obtaining a final judgment in a foreign country (referred to as the “out-of-country foreign judgment”).
2. Obtaining a certified copy of the out-of-country foreign judgment.
3. Filing and recording the following in the Florida county where the judgment debtor or the subject property is located:
   1. An affidavit to domesticate the out-of-country foreign judgment.
   2. A certified copy of the out-of-country foreign judgment, which must also be recorded in the county.
   3. Notice of registration of the out-of-country foreign judgment.

Once the above steps are completed, the Clerk will mail notice to the judgment debtor. §55.604(2). It is prudent for the judgment creditor to also mail notice to the judgment debtor. §55.604(2).

Once the notice of registration of the out-of-country foreign judgment has been sent to the judgment debtor, the judgment debtor then has 30 days to file a notice of objection with the clerk of the court specifying the grounds for nonrecognition or nonenforceability under the Act. §55.604(2). If the judgment debtor files a notice of objection, the Court has jurisdiction to conduct a hearing, determine the issues, and enter an appropriate order granting or denying recognition of the out-of-country foreign judgment. §55.604(3).

If the judgment debtor fails to timely file notice of objection, the clerk of the court must record a certificate stating that no objection was filed. §55.604(4). Upon entry of an order recognizing the out-of-country foreign judgment, or upon recording of the clerk’s certificate stating that no objection has been filed, the out-of-country foreign judgment shall be enforced in the same manner as a judgment of the State of Florida. §55.604(5).

To become a lien on real estate in Florida, the judgment debtor must record the following in the official records for the county where the real estate is located: (1) a certified copy of the judgment; and (2) a copy of the clerk’s certificate or the order recognizing the out-of-country foreign judgment. §55.604(7).

Grounds for Nonrecognition of an Out-of-Country Foreign Judgment

Section 55.605 provides the grounds for non-recognition of an out-of-country foreign judgment. Pursuant to Section 55.605, an out-of-country foreign judgment is not conclusive if:

1. The judgment was rendered under a system which does not provide impartial tribunals or procedures compatible with the requirements of due process of law.
2. The foreign court did not have personal jurisdiction over the defendant.
3. The foreign court did not have jurisdiction over the subject matter.

55.605(1). Additionally, an out-of-country foreign judgment need not be recognized if:

1. The defendant in the proceedings in the foreign court did not receive notice of the proceedings in sufficient time to enable him or her to defend.
2. The judgment was obtained by fraud.
3. The cause of action or claim for relief on which the judgment is based is repugnant to the public policy of this state.
4. The judgment conflicts with another final and conclusive order.
5. The proceeding in the foreign court was contrary to an agreement between the parties under which the dispute in question was to be settled otherwise than by proceedings in that court.
6. In the case of jurisdiction based only on personal service, the foreign court was a seriously inconvenient forum for the trial of the action.
7. The foreign jurisdiction where judgment was rendered would not give recognition to a similar judgment rendered in this state.
8. The cause of action resulted in a defamation judgment obtained in a jurisdiction outside the United States, unless the court sitting in this state before which the matter is brought first determines that the defamation law applied in the foreign court’s adjudication provided at least as much protection for freedom of speech and press in that case as would be provided by the United States Constitution and the State Constitution.
9. The judgment was rendered in circumstances that raise substantial doubt about the integrity of the rendering court with respect to the judgment.
10. The specific proceeding in the foreign court leading to the judgment was not compatible with the requirements of due process of law.

55.605(2). Further, Section 55.6055 addresses foreign defamation judgments, and Section 55.606 addresses personal jurisdiction relating to an out-of-country foreign judgment.

Staying Domestication Pending Appeal of the Out-of-Country Foreign Judgment

In order to stay domestication of an out-of-country foreign judgment because of an appeal, the judgment debtor must demonstrate to the Florida court that an appeal is pending, or that the debtor intends to appeal, and that the debtor has obtained a stay of judgment from the foreign court. §55.607. If the judgment debtor makes such a showing, then the Florida court may stay the proceedings until the appeal of the out-of-country foreign judgment has been determined or until a period of time sufficient to enable the debtor to prosecute the appeal. However, it is important to note that Section 55.607 uses the term “may”. Therefore, it is within the Florida court’s discretion whether to grant or deny a stay pending the outcome of an appeal.

Conclusion

The process for domesticating an out-of-country foreign judgment in Florida is provided in the Uniform Out-of-Country Foreign Money-Judgment Recognition Act.  As such, judgment creditors need to strictly comply with the Act in order to domesticate an out-of-country foreign judgment in Florida.

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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.