You won your case, but how do you enforce the judgment, especially if the debtor’s assets are in another state? To collect in Texas, you need a judgment that’s valid in Texas. If your judgment is from out of state — a foreign judgment — you must domesticate it before you collect.
What Is A Foreign Judgment?
A foreign judgment is a court decision made somewhere other than where you want to enforce it. For example, if a California manufacturing company sues and wins a judgment in California court against a Texas-based parts supplier, the California company must domesticate its judgment in Texas to seize or place liens on the supplier's Texas assets.
There are two types of foreign judgments:
- If the judgment is from another state, it's considered a "sister-state" foreign judgment, and it can be domesticated under Texas’ Uniform Enforcement of Foreign Judgments Act (UEFJA).
- A judgment from another country is a foreign-country judgment.
Sister-state judgments are generally easier to enforce due to the Full Faith and Credit Clause of the U.S. Constitution, which requires states to respect the judicial proceedings of other states.
Foreign country judgments, on the other hand, are not covered by the Full Faith and Credit Clause and typically face more scrutiny and must satisfy additional requirements before they can be enforced.
Our attorneys can discuss the process for domesticating a foreign-country judgment with you during an initial consultation.
How Do I Enforce an Out-of-State Judgment in Texas?
There are two methods: domesticating the judgment and filing a lawsuit.
To domesticate a judgment to Texas:
- Your attorney can help you file an authenticated copy of the judgment with the clerk of any court of competent jurisdiction in Texas (“competent jurisdiction” generally means a court with authority in the county where the debtor resides or has property);
- Submit an affidavit stating the name and last known address of both the judgment creditor and judgment debtor; and
- Pay the required filing fee.
- You and your attorney must also promptly mail a notice of the filing to the judgment debtor and file proof of that mailing with the court clerk.
Once filed properly, the out-of-state judgment is treated as if it were a Texas judgment and can be enforced using Texas collection procedures.
Filing a lawsuit is also an option. That takes longer than domestication but can be a better approach in more complex cases, like when you suspect a fraudulent transfer.
A Texas judgment enforcement attorney can assess your situation and advise you on the course of action most likely to achieve your goals.
Am I Required to Domesticate Federal Court Judgments?
Generally, federal court judgments issued in Texas do not need to be domesticated to be enforced in Texas state courts. However, federal judgments from other states do require domestication. Here's how it works:
Federal Judgments Issued Within Texas
When a federal court in Texas (like the Northern District of Texas or Southern District of Texas) issues a judgment:
- You can enforce it directly in Texas state courts without domestication
- Simply register the federal judgment with the clerk of the state court where you wish to enforce it
Federal Judgments from Outside Texas
When a federal court in another state (like the Southern District of New York or Northern District of California) issues a judgment:
- You do need to domesticate it in Texas
- The process follows the same procedure as domesticating state court judgments under the UEFJA
Can The Judgment Debtor Object To Domestication?
Yes, a judgment debtor can object to the domestication of a foreign judgment in Texas. However, the grounds for objection are limited due to the Full Faith and Credit Clause:
- Courts generally presume that a properly filed foreign judgment is valid.
- The debtor bears the burden of proving why the judgment should not be recognized or enforced.
- The debtor generally cannot relitigate the merits of the case.
Our attorneys can help you anticipate and counter any objections.
A Judgment Debtor Can Also Postpone Domestication
Per the Texas Uniform Enforcement of Foreign Judgments Act, the judgment debtor can also ask the court to stay (hold off on) domestication if they show that:
- The foreign judgment was or will be appealed, or that there is still time to appeal it.
- A stay of execution has been granted, requested, or will be requested from the out-of-state court. (A stay of execution is a court order that temporarily postpones collection activities for good cause, i.e., pending resolution of a related legal matter or to allow the debtor time to arrange payment. This doesn't forgive or eliminate the debt; it merely postpones collection efforts.)
- In most cases, the debtor must post a bond or other security to protect the creditor's interests during the stay period.
If these requirements are met, the court may temporarily pause enforcement of the foreign judgment until the appeal is concluded, the time for appeal expires, or the stay of execution expires or is lifted.
Time Limitations for Domesticating a Foreign Judgment
There are important deadlines to consider for both domesticating a judgment and collecting a domesticated judgment in Texas:
- Domestication deadline: Texas generally follows the 10-year statute of limitations for domesticating a sister-state judgment. This means you have 10 years from when the judgment was rendered in the original state to file it in Texas.
- Reviving a judgment: If the judgment has been revived or renewed in the original state according to that state's laws before the 10-year period expires, the renewed judgment can often be domesticated in Texas.
- Collecting a domesticated judgment: Once properly domesticated in Texas, the judgment becomes a Texas judgment and is subject to Texas's collection timeline – which allows for collection for 10 years from the date of domestication. Importantly, this collection period can be extended by filing a writ of execution before the 10-year period expires, which renews the judgment for another 10 years. This process can theoretically go on forever.
- Foreign country judgments must be domesticated within Texas's statute of limitations (10 years) or the rendering jurisdiction's timeline, whichever is shorter.
This area of law involves complex interactions between different jurisdictions' laws, so consult with a Texas attorney experienced in judgment enforcement for your situation.
What Can an Attorney Do To Help Me Collect An Out-of-State Judgment in Texas?
A Texas judgment enforcement attorney can help you:
- Analyze whether the judgment meets Texas requirements for domestication
- Prepare and file the foreign judgment and other required documents in an appropriate Texas court
- Follow precise rules for notifying the judgment debtor
- Respond to any objections the debtor might raise
- Discover the debtor’s Texas assets with depositions, interrogatories, and requests for production of documents
- File a lien against the debtor’s Texas property
- Ask the court to issue a writ of garnishment or execution
- Stop the debtor from making fraudulent transfers
- File renewal documents to extend the enforcement period when necessary
- Negotiate payments or settlements
Learn more about enforcing judgments in Texas.
Can Your Law Firm Help Me Domesticate a Texas Judgment in Another State?
Yes, we can help domesticate a Texas judgment in another state. We can prepare the Texas judgment for domestication, help you gather the necessary authentication documents, and create the required affidavits.
If necessary, we will partner with a local attorney to handle court appearances. However, our attorneys are licensed to practice in multiple jurisdictions, including federal district courts.
We often provide this service for our Texas clients, and it can be more cost-effective than having to find and retain new counsel unfamiliar with the case history.
Consult With a Texas Foreign Judgment Enforcement Attorney Today
Hendershot Cowart attorneys have extensive experience enforcing out-of-state judgments in Texas. We aggressively pursue every legal avenue to bring your judgment to Texas and collect the money you are owed. Contact us today to start the domestication process.