New York law provides two, expedited means of domesticating a judgment obtained outside the State of New York. Both are a reflection of the basic requirement, under the full faith and credit clause of U.S. Constitution (Art. IV, §1) that the “judgment of a state court should have the same credit, validity and effect, in every other court of the United States, which it had in the state where it was pronounced.”
The first and most straightforward option potentially available to judgment creditors is contained in Article 54 of the CPLR, which is NY’s codification of the Uniform Enforcement of Foreign Judgments Act. Under CPLR §5402, a foreign judgment registered in New York is to be treated “in the same manner as a judgment of the supreme court of this state,” including “the same procedures, defenses and proceedings for reopening, vacating, or staying as a judgment of the supreme court of this state and may be enforced or satisfied in like manner.” There are exceptions to the expedited 5402 procedure, including where appeals are pending in the foreign action.
By contrast a foreign creditor seeking enforcement of a foreign judgment obtained on default may not use the §5402 process. Such creditors can instead use the expedited proceeding known as a Motion for Summary Judgment in Lieu of Complaint provided in CPLR §3213, which short-circuits the usual process of filing a summons and complaint and allows the plaintiff-creditor to proceed directly to the summary judgment phase that ordinarily takes months to reach. Although the 3213 process creates potential that the defendant will delay enforcement, it can be a helpful and cost-effective alternative to litigating a full collection action entitling a defendant to time-consuming and expensive discovery.
CPLR §3213 is also available when an action is based on “an instrument for the payment of money only, meaning an unconditional obligation to pay money at a specified time, or upon demand. When a CPLR 3213 motion is denied, the motion for summary judgment in lieu of complaint is treated by the court as though filed as a complaint and the matter proceeds as a garden variety litigated action.
This content is provided as background and does not constitute legal advice. For more information or to schedule a free consultation, contact us at info@lalorattorneys.com / 646.818.9870.
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