Enforcing Out-Of-State Legal Judgments

Suppose an out-of-state client of yours is several months in arrears on their invoices or fails to deliver the goods that you have ordered. After much back and forth, you reluctantly decide to bring suit, even though the contract requires that the case be heard outside of Texas. Suppose then that the out-of-state court decides in your favor. Great news! The defendant owes you money to compensate you for your losses.

But how can you, based in Texas, compel a defendant to pay you the money awarded by a non-Texas court?

Collecting on a Judgment

If a losing defendant in a Texas civil suit refuses to make good on a judicial judgment, the court system provides several ways of pressuring them to pay up. One is called a debtor’s examination: The debtor is ordered to show up in person to answer questions concerning their assets, as outlined in Texas Business and Commerce Code §23.22. Another method is attaching a lien to physical property or other assets, which will hinder the debtor from legally transferring ownership to anyone else.

Fortunately for those who win out-of-state judgments, the U.S. Constitution’s Full Faith and Credit Clause requires state courts to enforce judgments rendered in other U.S. states and territories just as if they had been rendered in the state. The Texas Uniform Enforcement of Foreign Judgments Act outlines the procedures a winning plaintiff must follow.

The process of enforcing an out-of-state judgment in Texas is known as “domesticating a foreign judgment.” The legal world calls the cases “foreign judgments” because they were decided in out-of-state courts. If you win a civil judgment in an Oklahoma court, as far as Texas courts are concerned, it is a foreign judgment until it is domesticated.

A similar process exists for enforcing judgments from non-U.S. courts, but it is governed by the Foreign-Country Money Judgments Recognition Act, as embodied in Chapter 36A of the Texas Civil Practice and Remedies Code. The procedures are different, but the result is the same: The foreign-country judgment may be enforced by Texas courts.

Starting the Process

The process begins with filing the foreign judgment with a Texas court clerk, along with certain other information about the defendant. Notice must then be sent to the defendant (depending on the particular court, either by the plaintiff or by the court clerk), after which the plaintiff can begin the collection process.

Although it sounds fairly basic, domesticating a judgment is not a simple process. Filling out the proper paperwork and following all the local-court requirements can be bewildering to anyone not familiar with Texas state court procedures. The lawyers at Manfred Sternberg & Associates are experienced at enforcing foreign judgments and can take the nuisance and headache off your hands.

Manfred Sternberg is a full-service law firm in Houston, Texas. Our attorneys know how to resolve disputes in the most efficient manner possible.

Contact us here or call 713-547-5460.