The court, in this New York case, granted summary judgment in favor of the Abu Dhabi Bank and, thus, recognized the U.K. judgment. The facts of the case are typical in international judgment enforcement matters. The Abu Dhabi Bank is a company established in the United Arab Emirates. Saad Trading is a Saudi Arabian limited partnership. The Abu Dhabi Bank sued Saad Trading for breach of contract in a English court. The Abu Dhabi Bank prevailed and was awarded a judgment of US$ 33 million. The Abu Dhabi Bank wished to localize the judgment in New York.
Saad Trading, however, had no assets in New York and no contact with New York. However, the savvy lawyers for Abu Dhabi bank realized that a judgment of a foreign court that is recognized in New York allows the court to force creditors to compel assets to be brought into New York for execution.
Saad Trading emphatically argued that "due process" would be violated, since no personal jurisdiction over the the company existed, since Saad Trading had no assets in New York and no contact whatsoever with New York.
The Court opined that the recognition of foreign judgments in New York is a mere administrative/ministerial function that does not require personal jurisdiction, since no new damages are being argued and the case does not need to be heard on the merits.
New York because of the ability of New York courts to compel the bringing of assets into New York is, often, a great place for enforcing foreign money judgments.
Other cases on enforcing foreign judgments that may be interesting to the reader:
- Enforcing Foreign Judgments in New York
- Enforcing a New York Judgment Abroad
- Beating Summary Judgment in a New York Court
- Contracts with Foreign Subsidiaries
- Enforcement of Foreign Judgments in Korea
*Sean Hayes may be contacted at: SeanHayes@ipglegal.com. Sean Hayes is co-chair of the Korea Practice Team and Chair of International Practice Group at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw. He has, also, received the highest rating by AVVO and other legal rating services.