HOUSE BILL 690
49th legislature - STATE OF NEW MEXICO - first session, 2009
FOR THE COURTS, CORRECTIONS AND JUSTICE COMMITTEE
RELATING TO JUDGMENTS; REPEALING THE UNIFORM FOREIGN MONEY-JUDGMENTS RECOGNITION ACT; ENACTING THE UNIFORM FOREIGN-COUNTRY MONEY JUDGMENTS RECOGNITION ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the "Uniform Foreign-Country Money Judgments Recognition Act".
Section 2. DEFINITIONS.--As used in the Uniform Foreign-Country Money Judgments Recognition Act:
A. "foreign country" means a government other than:
(1) the United States;
(2) a state, district, commonwealth, territory or insular possession of the United States; or
(3) any other government with regard to which the decision in this state as to whether to recognize the judgments of that government's court 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; and
C. "foreign court" means a court of a foreign country.
Section 3. APPLICATION.--
A. Except as otherwise provided in Subsection B of this section, the Uniform Foreign-Country Money Judgments Recognition Act applies to a foreign-country judgment to the extent that the foreign-country 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.
B. The Uniform Foreign-Country Money Judgments Recognition Act does not apply to a foreign-country judgment, even if the foreign-country judgment grants or denies recovery of a sum of money, to the extent that the foreign-country judgment is:
(1) a judgment for taxes;
(2) a fine or other penalty; or
(3) a judgment for divorce, support or maintenance, or other judgment rendered in connection with domestic relations.
C. The party seeking recognition of a foreign-country judgment has the burden of establishing that the Uniform Foreign-Country Money Judgments Recognition Act applies to the foreign-country judgment.
Section 4. STANDARDS FOR RECOGNITION OF FOREIGN-COUNTRY JUDGMENT.--
A. Except as otherwise provided in Subsections B and C of this section, a court of this state shall recognize a foreign-country judgment to which the Uniform Foreign-Country Money Judgments Recognition Act applies.
B. A court of this state shall not recognize a foreign-country judgment if:
(1) the foreign-country judgment was rendered under a judicial system 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.
C. A court of this state need not recognize a foreign-country judgment if:
(1) 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;
(2) the foreign-country judgment was obtained by fraud that deprived the losing party of an adequate opportunity to present its case;
(3) the foreign-country judgment or the cause of action on which the foreign-country judgment is based is repugnant to the public policy of this state or of the United States;
(4) the foreign-country judgment conflicts with another final and conclusive judgment;
(5) 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;
(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-country judgment was rendered in circumstances that raise substantial doubt about the integrity of the rendering court with respect to the foreign-country judgment; or
(8) the specific proceeding in the foreign court leading to the foreign-country judgment was not compatible with the requirements of due process of law.
D. The party resisting recognition of the foreign-country judgment has the burden of establishing that one of the grounds for nonrecognition stated in Subsection B or C of this section exists.
Section 5. PERSONAL JURISDICTION.--
A. A foreign-country judgment shall not be refused recognition for lack of personal jurisdiction if:
(1) the defendant was served with process personally in the foreign country;
(2) 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;
(3) the defendant, before the commencement of the 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 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;
(5) 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; or
(6) 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.
B. The list of bases for personal jurisdiction in Subsection A of this section is not exclusive, and the courts of this state may recognize bases of personal jurisdiction other than those listed in Subsection A of this section as sufficient to support a foreign-country judgment.
Section 6. PROCEDURE FOR RECOGNITION OF FOREIGN-COUNTRY JUDGMENT.--
A. 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.
B. 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.
Section 7. EFFECT OF RECOGNITION OF FOREIGN-COUNTRY JUDGMENT.--If the court in a proceeding pursuant to Section 6 of the Uniform Foreign-Country Money Judgments Recognition Act finds that the foreign-country judgment is entitled to recognition under that act, then, to the extent that the foreign-country judgment grants or denies recovery of a sum of money, the foreign-country judgment is:
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; and
B. enforceable in the same manner and to the same extent as a judgment rendered in this state.
Section 8. STAY OF PROCEEDINGS PENDING APPEAL OF FOREIGN-COUNTRY JUDGMENT.--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 party appealing has had sufficient time to prosecute the appeal and has failed to do so.
Section 9. STATUTE OF LIMITATIONS.--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 fifteen years from the date that the foreign-country judgment became effective in the foreign country.
Section 10. SAVING CLAUSE.--The Uniform Foreign-Country Money Judgments Recognition Act does not prevent the recognition under principles of comity or otherwise of a foreign-country judgment not within the scope of that act.
Section 11. UNIFORMITY OF INTERPRETATION.--In applying and construing the Uniform Foreign-Country Money Judgments Recognition Act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Section 12. REPEAL.--Sections 39-4B-1 through 39-4B-9 NMSA 1978 (being Laws 1991, Chapter 180, Sections 1 through 9) are repealed.
Section 13. APPLICABILITY.--
A. Actions commenced before July 1, 2009 in which the issue of the recognition of a foreign country judgment is raised are governed by the Uniform Money-Judgments Recognition Act as if that act had not been repealed.
B. The Uniform Foreign-Country Money Judgments Recognition Act applies to all actions commenced on or after July 1, 2009 in which the issue of recognition of a foreign-country judgment is raised.
Section 14. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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