ULC

Why States Should Adopt UFCMJRA

The Uniform Foreign-Country Money Judgments Recognition Act is a revision of the Uniform Foreign Money Judgments Recognition Act of 1962, which codified the most prevalent common law rules with regard to the recognition and enforcement of money judgments rendered in other countries.  Under the 1962 Act, a state was required to recognize a foreign-country money judgment if the judgment satisfied the standards for recognition set out in the Act. 

Since its promulgation more than 40 years ago, the 1962 Act has been adopted in a majority of the states and has been in large part successful in carrying out its purpose of establishing clear and uniform standards under which state courts will enforce the foreign-country money judgments that come within its scope.

Notwithstanding the success of the 1962 Act, a revision is necessary to update that Act.  The revision is made timely by the continuing increase in international trade and the need for making each state a recognized forum for international business.  Highlights of the Revised Act include:

  • provides simple court procedures for the enforcement of foreign-country money judgments;
  • corrects and clarifies gaps in the 1962 Act revealed in the case law over the last 40 years;
  • addresses burdens of proof for the first time, providing that a petitioner for recognition has the burden of proving a judgment is entitled to recognition under the standards of the Act, and that any respondent resisting recognition and enforcement has the burden of proof respecting denial of recognition;
  • revises the grounds for denying recognition of foreign-country money judgments;
  • establishes a statute of limitations for recognition actions;
  • updates and clarifies both the definitions and the scope section;

The Uniform Foreign-Country Money Judgments Recognition Act provides clear and certain rules for obtaining foreign-country money judgments.  The Revised Act is a more comprehensive Act than its predecessor, and provides a better response to the current conditions of international trade.