FOREIGN JUDGMENTS: TAKING YOUR JUDGMENT WITH YOU--A TRAVEL GUIDE TO THE MIDWEST
by Bradley Wilhelmson, ATG Law Clerk

Inherent in the concept of a union between the States is an element of uniformity in structure. Our shared federal court system and similarly organized state systems provide an example of such uniformity. Yet, the constitutional construction of the United States provides for local differences that promote flexibility and facilitate experimentation. This has encouraged the innovation of new policies and has created opportunities for the development of the union. The combination of the concepts of unity and flexibility is illustrated by foreign judgment statutes, which allow for judicial decisions from one area of the nation made under a particular set of laws to be given effect in other areas that may feature vastly different laws.

Many states, such as Illinois and Wisconsin, have ratified the Uniform Enforcement of Foreign Judgments Act while others, such as Indiana, utilize the traditional process of having a local proceeding with the foreign judgment as evidence to make such a judgment enforceable locally. The United States Constitution provides in Article 4, Section 1 that judicial decisions from one state shall be given full faith and credit in the other states. This concept is given practical application in 28 USC § 1738, which allows authenticated records of judicial proceedings in one jurisdiction to be introduced into evidence in another jurisdiction, having "the same full faith and credit in every court within the United States and its Territories and Possessions as they have by law or usage in the courts of such State, Territory or Possession from which they are taken."

The Uniform Enforcement of Foreign Judgments Act (Act) was developed to implement the full faith and credit clause through an expeditious procedure. The Act can be applied to both out-of-state federal judgments and sister-state judgments. Keeton v Hustler Magazine, Inc, 815 F2d 857 (2nd D NY 1987) (Creditor properly filed a New Hampshire federal judgment in New York under the provisions of the Act). Additionally, the Act is not exclusive, which allows such judgments to alternatively be registered by any applicable state statutes in conjunction with 28 USC § 1963. For example, in Keeton, the court allowed the Act to be used to domesticate a foreign judgment, even though an alternative two-step procedure was also available. This procedure allowed a foreign federal judgment to be given the effect of a local federal judgment, and then Section 5018(b) of the New York Civil Practice and Law Rules allowed a local federal judgment to be considered the same as a judgment made in the county where enforcement was desired.

The foreign action to domesticate the judgment will not review the merits of the original decision, applying the principle of res judicata, but the court can inquire into whether the foreign court's finding of personal and subject matter jurisdiction was correct. Commercial Coin Laundry Systems v Enneking, 766 NE2d 433 (Ind App 2002). (A default judgment had been given to a creditor against two debtors in Illinois; an Indiana court did not allow the judgment to be domesticated as to one of the debtors, finding that the foreign court never had jurisdiction over him.) However, there is a strong presumption that the original court had proper jurisdiction in the foreign proceeding. Evans v Advance Schools, Inc, 70 Ill App 3d 947, 388 NE2d 1003, 27 Ill Dec 40 (1st D Ill App 1979) (A lower court's dismissal of a defendant's motion that opposed the registration of a California judgment in Illinois was affirmed by the appellate court in a case where the main issue was whether California had personal jurisdiction over the defendant). Additionally, the power of the local court to review the jurisdiction decision by the foreign court is not unlimited, being subject to the principles of res judicata. Ross & Chatterton Law Offices v Lewis, 109 Ill App 3d 856, 441 NE2d 129, 65 Ill Dec 337 (4th D Ill App 1982). (In an action based on the registration of a foreign judgment, an Illinois court did not reconsider jurisdiction issues that a Wisconsin court decided previously.)

While the full faith and credit clause provides that judgments from another state must be given equal effect in the local state, it allows statutory time limitations from the local state to govern when a local action on a foreign judgment can take place. Schemmel v Cooksley, 256 Ill 412, 100 NE 141 (Ill 1912). The local statute of limitations was applied to a judgment from Iowa, limiting a judgment that would have been valid there for 20 years to a five-year effective period in Illinois. Fields v Mundy's Estate, 106 Wis 383, 82 NW 343, 80 Am St Rep 39 (Wis 1900). A probate judgment from a Minnesota court was not given effect in Wisconsin due to a related statute of limitations in effect there. This general rule does not apply if the local statute discriminates against foreign judgments or procedurally limits a party's ability to bring an action for enforcement of such judgments. Haughton v Haughton, 76 Ill 2d 439, 394 NE2d 385, 31 Ill Dec 183 (Ill 1979). A mother sought enforcement of a foreign child support judgment; the court invalidated the statute that set the applicable time limit in Illinois for such payments because it violated the equal protection clauses of both the federal and state constitutions. Local statutes of limitations on the foreign judgment will start to run from the time that the judgment is made effective locally and not from the time when the judgment was originally made. Logemann Holding, Inc v Lieber, 341 Ill App 3d 689, 793 NE2d 135, 275 Ill Dec 655 (1st D Ill App 2003). (Four and a half years after registering a Wisconsin judgment in Illinois, and eight years after the Wisconsin court entered the judgment, plaintiff was able to levy against defendant's property in Illinois because the local statute of limitations only started to run when the foreign judgment was filed locally.)

Procedures for Establishing a Foreign Judgment

Illinois
The provisions of the Uniform Enforcement of Foreign Judgments Act are set forth in 735 ILCS 5/12-650 through 12-657. The Act defines a "foreign judgment" as the decision of a court in another state that is "entitled to full faith and credit" in Illinois. 735 ILCS 5/12-651. This includes both state court judgments and federal court judgments from courts located outside of Illinois. For a foreign judgment to become effective in a particular county, the judgment creditor must submit a copy of the judgment to the office of the circuit clerk for that county. 735 ILCS 5/12-652(a). It will then be treated like a judgment from a circuit court in Illinois with the "same procedures, defenses and proceedings for reopening, vacating, or staying." 735 ILCS 5/12-652(a). Even if the foreign judgment was based on a statute from the foreign jurisdiction that conflicts with a local statute, the judgment still will be given effect locally if filed correctly. Employers' Liability Assur Corp v Coronet Ins Co, 106 Ill App 2d 24, 245 NE2d 629 (1st D Ill App 1969). (An Illinois court allowed a Louisiana judgment to be registered, even though Illinois does not allow for direct actions against insurers in this factual situation.)

As part of filing process with the circuit clerk, the judgment creditor must include an affidavit that gives the names and last known post office addresses for the judgment creditor and debtor. 735 ILCS 5/12-653(a). The clerk will then mail notice of the filing to the judgment debtor except when the judgment was a foreign order of protection. 735 ILCS 5/12-653(b) and (c). Alternatively, the judgment creditor can mail notice of the filing to the judgment debtor and notify the clerk of this action by filing proof of the mailing. 735 ILCS 5/12-653(b).

If the foreign judgment relates to child support payments or a foreign order of protection, then the judgment does not need to be filed to be treated like a local judgment, but foreign orders of protection may be filed. 735 ILCS 5/12-652(b) and (c). For a foreign child support judgment to become an enforceable lien on real estate in the county, a "transcript, certified copy, or memorandum of the lien" must be recorded with the "office of the recorder in the county in which the real estate is located," and the lien will secure each payment as it becomes due. 735 ILCS 5/12-101.

If the foreign judgment is not a final one because of an appeal or stay of execution, the judgment will not be enforced until after it is finalized in the foreign jurisdiction. 735 ILCS 5/12-654(a). Filing fees are charged locally in the same amount as it costs to file a complaint seeking an award of the same amount as was awarded in the foreign judgment. No fee is charged in the case of a foreign order of protection. 735 ILCS 5/12-655.

The Act also provides that a judgment creditor can still bring an action to enforce the foreign judgment rather than proceed under the Act. 735 ILCS 5/12-656. However, if the judgment creditor chooses that path, a local court will not enforce the judgment after a seven-year period beginning at the time when the final judgment was rendered except when the judgment is revived under 735 ILCS 5/2-1601 or involves real estate, which can still be sold in the eighth year after a final judgment if the action to enforce the judgment began before the eighth year. 735 ILCS 5/12-108(a). Additionally, child support judgments may be enforced without regard to the seven-year limit. 735 ILCS 5/12-108(a).

To attach as a lien on the real estate of the debtor, a certified copy of the verified petition for registration, or a transcript, certified copy or memorandum of the final judgment of the Illinois court entered on the foreign judgment must be recorded in the office of the recorder in the county where the real estate is located. 735 ILCS 5/12-101. Upon recording, the lien is enforceable for seven years from the recording date. The judgment creditor or an assignee of record can bring an action to foreclose on the lien under the procedure given for foreclosing a mortgage of real property in 735 ILCS 5/15-1101, et seq. except that the real estate homestead exemption from 735 ILCS 5/12-901 applies and the redemption period runs for six months after the sale. 735 ILCS 5/12-101.

Federal court judgments from federal courts located in the state of Illinois are not treated as foreign judgments. Instead, they may be recorded in the same fashion as Illinois court judgments to become a valid lien on the debtor's real estate in the county. 735 ILCS 5/12-502.

Indiana
Indiana uses the traditional form for registration of a foreign judgment, which requires bringing an action in the Indiana county where the state or federal foreign judgment is to be enforced. The procedure to be used is described in IC 34-39-4-3(a), and it uses the foreign judgment as conclusive evidence to establish an equivalent judgment in the local jurisdiction. IC 34-39-4-3(b). This process involves having the foreign judgment "authenticated by attestation or certificate of the clerk or prothonotary, with the seal of the court annexed, together with the seal of the chief justice or one (1) or more of the judges, or the presiding magistrate of the court." IC 34-39-4-3(a). The goal of the process is to verify that the foreign judgment is valid and that "the attestation is in due form of law." IC 34-39-4-3(a)(2).

A federal judgment from a federal court located in Indiana or a judgment from another county in Indiana becomes applicable in the Indiana county where the property in question is located when a certified copy of the transcript of a foreign judgment or statement allowed by statute is filed with the circuit clerk. IC 33-17-2-3. These judgments are not included within the definition of foreign judgments requiring a court proceeding.

Once a judgment is properly registered, it can become a lien on real property under IC 34-55-9-2 when "duly entered and indexed in the judgment docket as provided by law." This can occur once the judgment is finalized, and the lien will last for ten years after the judgment is rendered exclusive of time that the judgment is suspended by such occurrences as appeals or injunctions. Even if the judgment creditor fails to create a valid judgment lien in the county of the original judgment, he or she can still domesticate the judgment in Indiana under IC 34-39-4-3 and thereby create a valid judgment lien against real property located there. Krilich v Soltesz/Brant Development Co, 771 NE2d 1169 (Ind App 2002). (Although a judgment creditor failed to create a valid lien in Florida under that state's laws, such a creditor could enforce such a lien in Indiana under its collection laws when the underlying foreign judgment was properly domesticated there.)

If an obligor is delinquent under a child support order registered pursuant to IC 31-18-6-1, then the amount of payment due is treated as a judgment, which when properly filed under IC 34-55-9-2, becomes a lien on the real property of the obligor in the county where the property is located. IC 31-16-16-2; IC 31-16-16-3. Such a lien on real estate also lasts for ten years under IC 34-55-9-2, unless the judgment requiring payments lasts longer under the provisions of IC 34-55-1-2.

Wisconsin
Wisconsin has also adopted the Act in Wis Stat § 806.24, which contains language similar to 735 ILCS 5/12-657 in providing for coherent interpretation of the Act between states. Wis Stat § 806.24(6). Once a foreign judgment is registered, the creditor may record the judgment under Wis Stat § 806.24 in the judgment and lien docket at the Register of Deeds Office for the county where real estate is located. The lien is enforceable for ten years from the date it was entered unless the property is subject to the homestead exemption found in Wis Stat § 815.20. Wis Stat § 806.15(1). This ten-year period does not include time during which the judgment is suspended or delayed. Wis Stat § 806.15(2).

To perfect a lien for a judgment from a federal court located in Wisconsin, which would not be a judgment covered under the Act, the creditor must record a copy of the judgment establishing the lien in the county where the debtor's real estate is located. Wis Stat § 806.17.

Child support judgments are treated differently. To become effective, the Department of Workforce Development must enter a lien based on a child support judgment into the statewide support lien docket. Wis Stat § 49.854(2). The lien then must be filed with the Register of Deeds in the county containing the property owned by the obligor to become a valid lien in the amount of unpaid child support at the time the lien is filed in the docket. Wis Stat § 49.854(2). This type of lien remains in force for five years from the date it becomes effective. Wis Stat § 49.854(12)(a). A child support lien is extinguished when the full amount outstanding is paid to the county child support agency and this is noted in the office of the Register of Deeds in the county containing the property owned by the obligor. Wis Stat § 49.854(2)(d).

Federal
A Federal district court judgment from a particular state can become a lien on property located within that same state under the provisions of 28 USC § 1962. Such a judgment would then have the same effect as the judgment of one of that state's courts. If state procedural law applies to federal judgments, then any state procedural law dealing with acts such as registering, recording, docketing, or indexing must be complied with to give the federal judgment made within the state effect as a valid lien. Illinois, Indiana, and Wisconsin each have a specific statute, given above, that allows in-state federal judgments to be to be treated as domestic judgments.

Further, judgments dealing with recovery of money or property from a federal court with jurisdiction in a foreign state have an equivalent effect as judgments from a local federal district court when they are registered in the local district under the provisions of 28 USC § 1963. This federal statute provides a non-exclusive method of registration with other potentially available methods include using the Uniform Enforcement of Foreign Judgments Act or the traditional process where an action gives local effect to a foreign judgment. Section 1963 allows for local registration of a foreign federal judgment when it is used in conjunction with a state statute. In most states, including Illinois, Indiana, and Wisconsin, the foreign judgment act provides that foreign federal judgments should be registered in the same manner as foreign state court judgments, as described above. The federal judgment must be final to be registered. There is an exception to this rule for where the judgment was entered in favor of the United States and, therefore, could be registered at any time after the court enters its judgment.

Conclusion

The Uniform Enforcement of Foreign Judgments Act facilitates the registration of foreign judgments in Illinois and Wisconsin. This Act allows for local registration of a judgment from a foreign state or federal court according to a well-defined process that gives such a judgment the same effect as if it had been made locally. States that have not enacted the uniform act, such as Indiana, use the traditional process under which a judgment from a foreign state or federal court is submitted as evidence in a local proceeding to give local effect to such judgment. Based on provisions found in federal and state law, federal judgments can be given local effect in several ways including under the Uniform Enforcement of Foreign Judgments Act, by means of a local action giving local effect to a foreign judgment, and through federal law that is generally used in conjunction with state specified procedures.

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