The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  523--A
     Cal. No. 406
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the  Committee  on  Judiciary  --  reported
   favorably  from  said  committee,  ordered to first and second report,
   ordered to a third reading, passed by  Senate  and  delivered  to  the
   Assembly,  recalled,  vote  reconsidered,  restored  to third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 AN  ACT to amend the civil practice law and rules, in relation to revis-
   ing and clarifying the uniform foreign country money-judgments  recog-
   nition act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The article heading of article 53 of the civil practice law
 and rules, as added by chapter 981 of the laws of 1970,  is  amended  to
 read as follows:
              RECOGNITION OF FOREIGN COUNTRY MONEY JUDGMENTS
                           [SUMMARY OF ARTICLE]

   §  2.  Section  5301  of the civil practice law and rules, as added by
 chapter 981 of the laws of 1970, subdivision (a) as amended  by  chapter
 119 of the laws of 1979, is amended to read as follows:
   § 5301. Definitions. As used in this article the following definitions
 shall be applicable.
   (a) Foreign [state] COUNTRY.  "Foreign [state] COUNTRY" [in this arti-
 cle] means [any governmental unit] A GOVERNMENT other than:
   1. the United States[, or any];
   2. A state, district, commonwealth, territory[,] OR insular possession
 [thereof, or the Panama Canal Zone or the Trust Territory of the Pacific
 Islands] OF THE UNITED STATES; OR

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03949-02-1

 S. 523--A                           2
 
   3.  ANY  OTHER  GOVERNMENT  WITH  REGARD TO WHICH THE DECISION IN THIS
 STATE AS TO WHETHER TO RECOGNIZE A JUDGMENT OF THAT GOVERNMENT'S  COURTS
 IS  INITIALLY  SUBJECT  TO DETERMINATION UNDER THE FULL FAITH AND CREDIT
 CLAUSE OF THE UNITED STATES CONSTITUTION.
   (b)  Foreign  country  judgment.  "Foreign  country judgment" [in this
 article] means [any] A judgment of a COURT OF A foreign [state  granting
 or  denying recovery of a sum of money, other than a judgment for taxes,
 a fine or other penalty, or a judgment for  support  in  matrimonial  or
 family matters] COUNTRY.
   §  3.  Section  5302  of the civil practice law and rules, as added by
 chapter 981 of the laws of 1970, is amended to read as follows:
   § 5302. Applicability. [This article applies to  any  foreign  country
 judgment  which is final, conclusive and enforceable where rendered even
 though an appeal therefrom is pending or it is subject to  appeal.]  (A)
 EXCEPT  AS  OTHERWISE  PROVIDED  IN SUBDIVISION (B) OF THIS SECTION, THE
 PROVISIONS OF THIS ARTICLE APPLY TO A FOREIGN COUNTRY  JUDGMENT  TO  THE
 EXTENT THAT SUCH JUDGMENT:
   1. GRANTS OR DENIES RECOVERY OF A SUM OF MONEY; AND
   2.  UNDER  THE  LAW  OF  THE FOREIGN COUNTRY WHERE RENDERED, IS FINAL,
 CONCLUSIVE AND ENFORCEABLE EVEN THOUGH AN APPEAL THEREFROM IS PENDING OR
 IT IS SUBJECT TO APPEAL.
   (B) THIS ARTICLE DOES NOT APPLY TO A FOREIGN COUNTRY JUDGMENT, EVEN IF
 THE JUDGMENT GRANTS OR DENIES RECOVERY OF A SUM OF MONEY, TO THE  EXTENT
 THE JUDGMENT IS:
   1. A JUDGMENT FOR TAXES;
   2. A FINE OR PENALTY; OR
   3.  A  JUDGMENT FOR DIVORCE, SUPPORT OR MAINTENANCE, OR OTHER JUDGMENT
 RENDERED IN CONNECTION WITH DOMESTIC RELATIONS.
   (C) A PARTY SEEKING RECOGNITION OF A FOREIGN COUNTRY JUDGMENT HAS  THE
 BURDEN  OF ESTABLISHING THAT THIS ARTICLE APPLIES TO THE FOREIGN COUNTRY
 JUDGMENT.
   § 4. Section 5303 of the civil practice law and  rules,  as  added  by
 chapter 981 of the laws of 1970, is amended to read as follows:
   § 5303. Recognition [and] enforcement, AND PROCEEDINGS.  (A) Except as
 IS OTHERWISE provided in section [5304] FIFTY-THREE HUNDRED FOUR OF THIS
 ARTICLE  OR  ANY  CONTROLLING  LAW OF THE UNITED STATES, A COURT OF THIS
 STATE SHALL RECOGNIZE a foreign country judgment [meeting  the  require-
 ments  of  section  5302 is] TO WHICH THIS ARTICLE APPLIES AS conclusive
 between the parties to the extent that it grants or denies recovery of a
 sum of money. [Such a foreign judgment is enforceable by  an  action  on
 the  judgment, a motion for summary judgment in lieu of complaint, or in
 a pending action by counterclaim, cross-claim or affirmative defense.]
   (B) IF RECOGNITION OF A FOREIGN  COUNTRY  JUDGMENT  IS  SOUGHT  AS  AN
 ORIGINAL  MATTER,  THE ISSUE OF RECOGNITION SHALL BE RAISED BY FILING AN
 ACTION ON THE JUDGMENT OR A MOTION  FOR  SUMMARY  JUDGMENT  IN  LIEU  OF
 COMPLAINT SEEKING RECOGNITION OF THE FOREIGN COUNTRY JUDGMENT.
   (C)  IF RECOGNITION OF A FOREIGN COUNTRY JUDGMENT IS SOUGHT IN A PEND-
 ING ACTION, THE ISSUE OF RECOGNITION  MAY  BE  RAISED  BY  COUNTERCLAIM,
 CROSS-CLAIM OR AFFIRMATIVE DEFENSE.
   (D)  AN  ACTION  TO  RECOGNIZE  A  FOREIGN  COUNTRY  JUDGMENT  MUST BE
 COMMENCED WITHIN THE EARLIER OF THE TIME DURING WHICH THE FOREIGN  COUN-
 TRY  JUDGMENT  IS  EFFECTIVE IN THE FOREIGN COUNTRY OR TWENTY YEARS FROM
 THE DATE THAT THE FOREIGN  COUNTRY  JUDGMENT  BECAME  EFFECTIVE  IN  THE
 FOREIGN COUNTRY.
   §  5.  Section 5304 of the civil practice law and rules, as amended by
 chapter 66 of the laws of 2008, is amended to read as follows:

 S. 523--A                           3
 
   § 5304. Grounds for non-recognition. (a) [No recognition.] A COURT  OF
 THIS  STATE MAY NOT RECOGNIZE A foreign country judgment [is not conclu-
 sive] if:
   1. the judgment was rendered under a JUDICIAL system [which] THAT 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; OR
   3.  THE  FOREIGN  COURT  DID  NOT  HAVE  JURISDICTION OVER THE SUBJECT
 MATTER.
   (b) [Other grounds for non-recognition.] A [foreign country  judgment]
 COURT OF THIS STATE need not [be recognized] RECOGNIZE A FOREIGN COUNTRY
 JUDGMENT if:
   1.  [the  foreign  court  did  not  have jurisdiction over the subject
 matter;
   2.] the defendant in the [proceedings] PROCEEDING in the foreign court
 did not receive notice of the  [proceedings]  PROCEEDING  in  sufficient
 time to enable [him] THE DEFENDANT to defend;
   [3.]  2.  the  judgment was obtained by fraud THAT DEPRIVED THE LOSING
 PARTY OF AN ADEQUATE OPPORTUNITY TO PRESENT ITS CASE;
   [4.] 3. THE JUDGMENT OR the cause of action on which the  judgment  is
 based  is  repugnant to the public policy of this state OR OF THE UNITED
 STATES;
   [5.] 4. the judgment conflicts with another final and conclusive judg-
 ment;
   [6.] 5. the proceeding in the foreign court was contrary to an  agree-
 ment  between  the parties under which the dispute in question was to be
 [settled] DETERMINED otherwise than by  [proceedings]  A  PROCEEDING  in
 that court;
   [7.]  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; [or]
   7.  THE  JUDGMENT WAS RENDERED IN CIRCUMSTANCES THAT RAISE SUBSTANTIAL
 DOUBT ABOUT THE INTEGRITY OF THE RENDERING COURTS WITH  RESPECT  TO  THE
 JUDGMENT;
   8.  THE  SPECIFIC PROCEEDING IN THE FOREIGN COURT LEADING TO THE JUDG-
 MENT WAS NOT COMPATIBLE WITH THE REQUIREMENTS OF DUE PROCESS OF LAW; OR
   9. the cause of action resulted in a defamation judgment obtained in a
 jurisdiction outside the United States, unless the  court  before  which
 the  matter  is  brought sitting in this state 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 both the United States and New York constitutions.
   (C)  A  PARTY  RESISTING RECOGNITION OF A FOREIGN COUNTRY JUDGMENT HAS
 THE BURDEN OF ESTABLISHING THAT A GROUND FOR NON-RECOGNITION  STATED  IN
 SUBDIVISION  (A)  OR (B) OF THIS SECTION EXISTS; PROVIDED THAT THE PARTY
 SEEKING RECOGNITION SHALL BEAR THE BURDEN OF ESTABLISHING  THE  ADEQUATE
 PROTECTIONS  FOR  FREEDOM OF SPEECH AND PRESS REQUIRED AS A CONDITION TO
 RECOGNITION UNDER PARAGRAPH NINE OF SUBDIVISION (B) OF THIS  SECTION  IF
 THE  PARTY  RESISTING  RECOGNITION  ESTABLISHES THAT THE JUDGMENT IS FOR
 DEFAMATION.
   § 6. Section 5305 of the civil practice law and  rules,  as  added  by
 chapter 981 of the laws of 1970, is amended to read as follows:
   §  5305.  Personal  jurisdiction.  (a) [Bases of jurisdiction.  The] A
 foreign country judgment [shall] MAY not be refused recognition for lack
 of personal jurisdiction if:

 S. 523--A                           4
 
   1. the defendant was served WITH PROCESS  personally  in  the  foreign
 [state] COUNTRY;
   2. the defendant voluntarily appeared in the [proceedings] PROCEEDING,
 other  than  for the purpose of protecting property seized or threatened
 with seizure in the [proceedings] PROCEEDING or of contesting the juris-
 diction of the court over [him] THE DEFENDANT;
   3. the defendant  prior  to  the  commencement  of  the  [proceedings]
 PROCEEDING had agreed to submit to the jurisdiction of the foreign court
 with respect to the subject matter involved;
   4. the defendant was domiciled in the foreign [state] COUNTRY when the
 [proceedings were] PROCEEDING WAS instituted[,] or[, being a body corpo-
 rate]  WAS A CORPORATION OR OTHER FORM OF BUSINESS ORGANIZATION THAT had
 its principal place of business[, was incorporated,] IN, OR  WAS  ORGAN-
 IZED  UNDER  THE LAWS OF, or had otherwise acquired corporate status, in
 the foreign [state] COUNTRY;
   5. the defendant had a business office in the foreign [state]  COUNTRY
 and  the  [proceedings] PROCEEDING in the foreign court involved a cause
 of action arising out of business done by  the  defendant  through  that
 office in the foreign [state] COUNTRY; or
   6.  the  defendant operated a motor vehicle or airplane in the foreign
 [state] COUNTRY and the [proceedings] PROCEEDING  involved  a  cause  of
 action arising out of such operation.
   (b) [Other bases of jurisdiction.] The courts of this state may recog-
 nize  [other]  bases of PERSONAL jurisdiction OTHER THAN THOSE LISTED IN
 SUBDIVISION (A) OF THIS SECTION AS SUFFICIENT TO SUPPORT A FOREIGN COUN-
 TRY JUDGMENT.
   § 7. Section 5306 of the civil practice law and  rules,  as  added  by
 chapter 981 of the laws of 1970, is amended to read as follows:
   §  5306.  Stay  [in  case] of A PROCEEDING PENDING appeal OF A FOREIGN
 COUNTRY JUDGMENT.  If [the defendant satisfies the court either] A PARTY
 ESTABLISHES that an appeal FROM A FOREIGN COUNTRY JUDGMENT is pending or
 [that he is entitled and intends to  appeal  from  the  foreign  country
 judgment]  WILL  BE  TAKEN,  the  court  may  stay [the proceedings] ANY
 PROCEEDING WITH REGARD TO THE FOREIGN COUNTRY JUDGMENT until the  appeal
 [has  been  determined  or  until the expiration of a period of time] IS
 CONCLUDED, THE TIME FOR APPEAL EXPIRES, OR THE APPELLANT HAS HAD  suffi-
 cient  [to  enable  the  defendant] TIME to prosecute the appeal AND HAS
 FAILED TO DO SO.
   § 8. Section 5307 of the civil practice law and  rules,  as  added  by
 chapter 981 of the laws of 1970, is amended to read as follows:
   § 5307. [Recognition in other situations.] EFFECT OF RECOGNITION.  (A)
 IF  THE COURT, IN A PROCEEDING UNDER SECTION FIFTY-THREE HUNDRED FIVE OF
 THIS ARTICLE FINDS THAT THE JUDGMENT IS ENTITLED  TO  RECOGNITION  UNDER
 THIS  ARTICLE,  THEN,  TO  THE  EXTENT THAT THE FOREIGN COUNTRY JUDGMENT
 GRANTS OR DENIES RECOVERY OF A SUM OF MONEY, THE FOREIGN  COUNTRY  JUDG-
 MENT IS:
   1.  CONCLUSIVE  BETWEEN THE PARTIES TO THE SAME EXTENT AS THE JUDGMENT
 OF A SISTER STATE ENTITLED TO FULL FAITH AND CREDIT IN THIS STATE  WOULD
 BE CONCLUSIVE; AND
   2. ENFORCEABLE IN THE SAME MANNER AND TO THE SAME EXTENT AS A JUDGMENT
 RENDERED IN THIS STATE.
   (B) This article does not prevent the recognition of a foreign country
 judgment in situations not covered by this article.
   §  9.  Section  5309  of the civil practice law and rules, as added by
 chapter 981 of the laws of 1970, is amended to read as follows:

 S. 523--A                           5
 
   § [5309.] 5300. Citation. This article may be cited  as  the  "Uniform
 Foreign Country [Money-Judgments Recognition] MONEY JUDGMENTS Act."
   §  10.  This  act shall take effect immediately and shall apply to all
 actions commenced on or after the effective date of this act.