April 24, 2007, Introduced by Reps. Condino, Meadows, Byrnes, Alma Smith, Vagnozzi, Tobocman and Bieda and referred to the Committee on Judiciary.
A bill to revise the standards under which courts of this
state recognize foreign money judgments; to establish procedures
for the recognition of foreign money judgments; to limit the time
within which an action to enforce a foreign money judgment may be
commenced; to make uniform the law relating to the enforcement of
foreign money judgments; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"uniform foreign-country money judgments recognition act".
Sec. 2. As used in this act:
(a) "Foreign country" means a government other than any of the
following:
(i) The United States.
(ii) A state, district, commonwealth, territory, or insular
possession of the United States.
(iii) 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" means a judgment of a court of
a foreign country.
Sec. 3. (1) Except as otherwise provided in subsection (2),
this act applies to a foreign-country judgment to the extent that
both of the following apply:
(a) The judgment grants or denies recovery of a sum of money.
(b) Under the law of the foreign country where rendered, the
judgment is final, conclusive, and enforceable.
(2) This act does not apply to a foreign-country judgment,
even if the judgment grants or denies recovery of a sum of money,
to the extent that the judgment is any of the following:
(a) A judgment for taxes.
(b) A fine or other penalty.
(c) A judgment for divorce, support, or maintenance or other
judgment rendered in connection with domestic relations.
(3) A party seeking recognition of a foreign-country judgment
has the burden of establishing that this act applies to the
foreign-country judgment.
Sec. 4. (1) Except as otherwise provided in subsections (2)
and (3), a court of this state shall recognize a foreign-country
judgment to which this act applies.
(2) A court of this state shall not recognize a foreign-
country judgment if any of the following apply:
(a) The judgment was rendered under a judicial system that
does not provide impartial tribunals or procedures compatible with
the requirements of due process of law.
(b) The foreign court did not have personal jurisdiction over
the defendant.
(c) The foreign court did not have jurisdiction over the
subject matter.
(3) A court of this state need not recognize a foreign-country
judgment if any of the following apply:
(a) The defendant in the proceeding in the foreign court did
not receive notice of the proceeding in sufficient time to enable
the defendant to defend.
(b) The judgment was obtained by fraud that deprived the
losing party of an adequate opportunity to present its case.
(c) 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.
(d) The judgment conflicts with another final and conclusive
judgment.
(e) The proceeding in the foreign court was contrary to an
agreement between the parties under which the dispute in question
was to be determined otherwise than by proceedings in that foreign
court.
(f) If jurisdiction was based only on personal service, the
foreign court was a seriously inconvenient forum for the trial of
the action.
(g) The judgment was rendered in circumstances that raise
substantial doubt about the integrity of the rendering court with
respect to the judgment.
(h) The specific proceeding in the foreign court leading to
the judgment was not compatible with the requirements of due
process of law.
(4) A party resisting recognition of a foreign-country
judgment has the burden of establishing that a ground for
nonrecognition stated in subsection (2) or (3) exists.
Sec. 5. (1) A foreign-country judgment shall not be refused
recognition for lack of personal jurisdiction if any of the
following apply:
(a) The defendant was served with process personally in the
foreign country.
(b) The defendant voluntarily appeared in the proceeding,
other than for the purpose of protecting property seized or
threatened with seizure in the proceeding or of contesting the
jurisdiction of the court over the defendant.
(c) The defendant, before the commencement of the proceeding,
agreed to submit to the jurisdiction of the foreign court with
respect to the subject matter involved.
(d) The defendant was domiciled in the foreign country when
the proceeding was instituted or was a corporation or other form of
business organization that had its principal place of business in,
or was organized under the laws of, the foreign country.
(e) The defendant had a business office in the foreign country
and the proceeding in the foreign court involved a cause of action
arising out of business done by the defendant through that office
in the foreign country.
(f) The defendant operated a motor vehicle or airplane in the
foreign country and the proceeding involved a cause of action
arising out of that operation.
(2) The list of bases for personal jurisdiction in subsection
(1) is not exclusive. The courts of this state may recognize bases
of personal jurisdiction other than those listed in subsection (1)
as sufficient to support a foreign-country judgment.
Sec. 6. (1) If recognition of a foreign-country judgment is
sought as an original matter, the issue of recognition shall be
raised by filing an action seeking recognition of the foreign-
country judgment.
(2) If recognition of a foreign-country judgment is sought in
a pending action, the issue of recognition may be raised by
counterclaim, cross-claim, or affirmative defense.
Sec. 7. If the court in a proceeding under section 6 finds
that the foreign-country judgment is entitled to recognition under
this act, then, to the extent that the foreign-country judgment
grants or denies recovery of a sum of money, the foreign-country
judgment is both of the following:
(a) 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.
(b) Enforceable in the same manner and to the same extent as a
judgment rendered in this state.
Sec. 8. If a party establishes that an appeal from a foreign-
country judgment is pending or will be taken, the court may stay
any proceedings with regard to the foreign-country judgment until
the appeal is concluded, the time for appeal expires, or the
appellant has had sufficient time to prosecute the appeal and has
failed to do so.
Sec. 9. An action to recognize a foreign-country judgment
shall be commenced within the earlier of the time during which the
foreign-country judgment is effective in the foreign country or 15
years from the date that the foreign-country judgment became
effective in the foreign country.
Sec. 10. In applying and construing this uniform act, a court
shall consider the need to promote uniformity of the law with
respect to its subject matter among states that enact it.
Sec. 11. This act does not prevent the recognition under
principles of comity or otherwise of a foreign-country judgment
that is not within the scope of this act.
Sec. 12. This act applies to all actions commenced on or after
the effective date of this act in which the issue of recognition of
a foreign-country judgment is raised.
Sec. 13. The uniform foreign money-judgments recognition act,
1967 PA 191, MCL 691.1151 to 691.1159, is repealed.