Navigating Domestication of Judgments in Texas: A Comprehensive Guide
What Is Domestication of a Judgment?
When a plaintiff wins a case and secures a final judgment in another state, they can’t automatically enforce that judgment in Texas. Instead, they must go through a process called domestication. Domestication allows the out-of-state judgment to be recognized and enforced in Texas as though it were originally issued here.
The Role of the Judgment Creditor
The party holding the out-of-state judgment is known as the judgment creditor. By domesticating the judgment, the creditor gains the ability to collect debts or seize assets from the debtor within Texas.*
*Note: a judgment creditor’s ability to seize certain assets from the debtor in Texas may be limited. Check out our blog post on asset exemptions here: Unlocking Asset Protections in Texas: A Comprehensive Overview.
Texas Law and the UEFJA
Texas has adopted the Uniform Enforcement of Foreign Judgments Act (UEFJA), found in Chapter 35 of the Texas Property Code. UEFJA is a uniform set of rules created to streamline the enforcement of judgments across state lines.
Most states follow UEFJA (with the exception of California, Massachusetts, and Vermont), making it easier for creditors to pursue debts outside the state where the original judgment was entered.
How Texas Courts View Foreign Judgments
In Texas, a “foreign judgment” refers to any judgment, decree, or order issued by a U.S. court that is entitled to full faith and credit under the Constitution. Once properly domesticated, the foreign judgment is treated the same as if a Texas court had issued it.
Legal Framework Governing the Process
The process of domestication in Texas is guided by:
Texas Civil Practice and Remedies Code § 35.001 et seq. – Adopting the UEFJA.
Texas Civil Practice and Remedies Code 16.066 – Setting out procedural requirements.
Together, these rules ensure that judgment creditors can efficiently enforce their out-of-state judgments in Texas.
UEFJA Procedures for Domesticating Judgment:
Timing and Limitations:
Domestication is subject to certain timing constraints. If the judgment debtor has resided in Texas for over ten years before the action and the foreign judgment is more than a decade old, domestication may not proceed. Tex. Civ. P. & Rem. 16.066(b).
The action for domestication must adhere to the statute of limitations applicable in the jurisdiction where the judgment was initially rendered. Tex. Civ. P. & Rem. 16.066(a). This requirement involves examining the original jurisdiction’s statute of limitations for enforcement of judgements.
Determining Venue:
Texas venue laws apply to UEFJA. Venue laws in Texas dictate where domestication action can be filed. For individual judgment debtors, it's typically their county of residence. If the debtor is not a natural person, the action can be initiated in the county where their principal office is located. Tex. Civ. P. & Rem. 15.002.
Filing Requirements:
UEFJA simplifies the filing requirements for domesticating a judgement. The judgment creditor must submit an authenticated copy of the foreign judgment, ensuring it comes from a court with jurisdiction over the matter and parties involved.
To be authenticated the rendering court clerk attests to the judgment and affixes the court’s seal to the authenticated judgement along with a certification from a judge of the court that the attestation is proper.
Alongside the authenticated judgment, the creditor must additionally file a Notice of Filing of Foreign Judgment and an affidavit affirming the judgment's validity. Tex. Civ. P. & Rem. 35.004(a).
Proper notice of the filing must be provided to the judgment debtor and their attorney, with evidence of mailing submitted to the court.
Impact of Proper Domestication:
Once the judgment is properly domesticated, the creditor gains the ability to pursue collections in Texas as if the judgment originated within the state.
This grants the creditor access to various legal remedies, including filing abstracts of judgment and initiating the collections process.
In essence, domestication streamlines the enforcement of out-of-state judgments in Texas, ensuring that judgment creditors have access to the same legal avenues available for local judgments. By following the prescribed procedures under UEFJA and Texas law, creditors can effectively assert their rights and recover debts owed within the state's jurisdiction.
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