How are foreign judgments recognized and enforced when a debtor has assets in another country?

Because judgments are sovereign acts with no force beyond the jurisdiction of the court that rendered them, a creditor must seek recognition and enforcement in a state where the debtor holds assets if local assets are unavailable.1

Mechanisms for Recognition

• Regional Integration: In the European Union, regulations such as the Brussels I and II mandates ensure the automatic recognition and enforcement of civil, commercial, and matrimonial judgments across member states. Within the United States, the full faith and credit clause of the Constitution requires states to recognize sister-state judgments.1
• International Law: Outside of integrated systems, recognition is governed by national law and occasionally by bilateral or multilateral treaties.1

Requirements and Limitations

National systems typically require that the original court had proper jurisdiction, the debtor received sufficient notice to defend, and the judgment does not violate the recognizing state's public policy. Most systems prohibit a review of the case on its merits (révision au fond).1

Once recognized, enforcement follows local procedural law, which may include the seizure and sale of nonexempt property or garnishment of income.2