Bill Text: TX HB2122 | 2017-2018 | 85th Legislature | Engrossed


Bill Title: Relating to the adoption of the Uniform Foreign-Country Money Judgments Recognition Act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-18 - Referred to State Affairs [HB2122 Detail]

Download: Texas-2017-HB2122-Engrossed.html
  85R25567 CAE-F
 
  By: Clardy H.B. No. 2122
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the adoption of the Uniform Foreign-Country Money
  Judgments Recognition Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 2, Civil Practice and Remedies
  Code, is amended by adding Chapter 36A to read as follows:
  CHAPTER 36A. ENFORCEMENT OF JUDGMENTS OF OTHER COUNTRIES
         Sec. 36A.001.  SHORT TITLE. This chapter may be cited as the
  Uniform Foreign-Country Money Judgments Recognition Act.
         Sec. 36A.002.  DEFINITIONS. In this chapter:
               (1)  "Foreign country" means a government other than:
                     (A)  the United States;
                     (B)  a state, district, commonwealth, territory,
  or insular possession of the United States; or
                     (C)  any other government with respect to which
  the decision in this state as to whether to recognize a judgment of
  that government's court is initially subject to determination under
  Section 1, Article IV, United States Constitution (the full faith
  and credit clause).
               (2)  "Foreign-country judgment" means a judgment of a
  court of a foreign country.
         Sec. 36A.003.  APPLICABILITY. (a) Except as otherwise
  provided in Subsection (b), this chapter applies to a
  foreign-country judgment to the extent that the judgment:
               (1)  grants or denies recovery of a sum of money; and
               (2)  under the law of the foreign country in which the
  judgment is rendered, is final, conclusive, and enforceable.
         (b)  This chapter does not apply to a foreign-country
  judgment that grants or denies recovery of a sum of money to the
  extent that the 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)  A party seeking recognition of a foreign-country
  judgment has the burden of establishing that this chapter applies
  to the foreign-country judgment.
         Sec. 36A.004.  STANDARDS FOR RECOGNITION OF FOREIGN-COUNTRY
  JUDGMENT. (a) Except as otherwise provided in Subsections (b) and
  (c), a court of this state shall recognize a foreign-country
  judgment to which this chapter applies.
         (b)  A court of this state may not recognize a
  foreign-country judgment if:
               (1)  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;
               (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 is not required to 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 judgment was obtained by fraud that deprived
  the losing party of an adequate opportunity to present the party's
  case;
               (3)  the judgment or the cause of action on which the
  judgment is based is repugnant to the public policy of this state or
  the United States;
               (4)  the 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 the
  foreign court;
               (6)  jurisdiction was based only on personal service
  and the foreign court was a seriously inconvenient forum for the
  trial of the action;
               (7)  the judgment was rendered in circumstances that
  raise substantial doubt about the integrity of the rendering court
  with respect to the judgment; or
               (8)  the specific proceeding in the foreign court
  leading to the judgment was not compatible with the requirements of
  due process of law.
         (d)  A party resisting recognition of a foreign-country
  judgment has the burden of establishing that a ground for
  nonrecognition stated in Subsection (b) or (c) exists.
         Sec. 36A.005.  PERSONAL JURISDICTION. (a) A
  foreign-country judgment may 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 commencement of the
  proceeding, 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 whose principal place of business was
  in, or that 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) is not exclusive. A court of this state may
  recognize bases of personal jurisdiction other than those listed in
  Subsection (a) as sufficient to support a foreign-country judgment.
         Sec. 36A.006.  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 may 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.
         Sec. 36A.007.  EFFECT OF RECOGNITION OF FOREIGN-COUNTRY
  JUDGMENT. If the court in a proceeding under Section 36A.006 finds
  that the foreign-country judgment is entitled to recognition under
  this chapter, then, to the extent that the foreign-country judgment
  grants or denies recovery of a sum of money, the foreign-country
  judgment is:
               (1)  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
               (2)  enforceable in the same manner and to the same
  extent as a judgment rendered in this state.
         Sec. 36A.008.  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:
               (1)  the appeal is concluded;
               (2)  the time for appeal expires; or
               (3)  the appellant has had sufficient time to prosecute
  the appeal and has failed to do so.
         Sec. 36A.009.  STATUTE OF LIMITATIONS. An action to
  recognize a foreign-country judgment must be brought within the
  earlier of:
               (1)  the time during which the foreign-country judgment
  is effective in the foreign country; or
               (2)  15 years from the date that the foreign-country
  judgment became effective in the foreign country.
         Sec. 36A.010.  UNIFORMITY OF INTERPRETATION. In applying
  and construing this chapter, consideration must be given to the
  need to promote uniformity of the law with respect to the subject
  matter of this chapter among states that enact a law based on the
  uniform act on which this chapter is based.
         Sec. 36A.011.  SAVING CLAUSE. This chapter does not prevent
  the recognition under principles of comity or otherwise of a
  foreign-country judgment not within the scope of this chapter.
         SECTION 2.  Chapter 36, Civil Practice and Remedies Code, is
  repealed.
         SECTION 3.  Chapter 36A, Civil Practice and Remedies Code,
  as added by 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.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
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