Governor Andrew Cuomo signed into law on June 14 legislation that amended Article 53 of the New York Civil Practice Law and Rules (“CPLR”), changing the rules regarding the state’s recognition of foreign money judgments.
The bill updates state law, making it consistent with the revised Uniform Foreign-Country Money Judgments Recognition Act (the “2005 Uniform Act”) already enacted in at least 26 states. The purpose of the amendments is to clarify provisions of Article 53, resolve inconsistent case treatment and avoid forum shopping. The new law takes effect immediately and applies to all actions commenced on or after its effective date. The most notable amendments include:
The new Section 5304(b)(7) provides that New York courts have discretion to deny recognition where the foreign country judgment “was rendered in circumstances that raise substantial doubt about the integrity of the rendering courts with respect to the judgment.” The new Section 5304(b)(8), similarly, provides New York courts discretion to deny recognition where “the specific proceeding in the foreign court leading to the judgment was not compatible with the requirements of due process of law.”