Domesticating an out-of-state judgment is easier in New York when the out-of-state court awarded the judgment “on the merits,” meaning the defendant appeared in the case. Filing an out-of-state default judgment—a judgment awarded when the defendant did not appear—is a bit more timely and challenging. But what happens when the defendant appears earlier in the case, and then never appears again, and the judgment you receive says “Final Default Judgment.” What are your options for filing that judgment in New York?
Under the U.S. Constitution, New York is required to give full faith and credit to judgments entered in other U.S. States or territories. It is first important to understand the two ways one can file or domesticate an out-of-state judgment in New York.
Filing a Judgment On the Merits
Let’s say the plaintiff sued in Florida and the defendant(s) appeared to defend the case through trial. At the end of the trial, the court awarded a monetary judgment—considered a judgment “on the merits“—in Florida. In this case, both sides had the opportunity to be heard and the court made a determination based on the underlying facts of the matter.
Assuming the Florida judgment was entered through this process, New York would allow the judgment creditor to simply docket the judgment with the court in which the judgment debtor resides in New York. The judgment creditor or their attorney would file the judgment accompanied by an affidavit stating that the out-of-state judgment:
- Was not obtained by default in appearance or by confession of judgment
- Is unsatisfied in whole or in part
- Remains unpaid
- Enforcement has not been stayed
- Contains the name and last known address of the judgment debtor
Additionally, the judgment creditor would forward a notification of filing to the judgment debtor within 30 days and file an affidavit of service with the court. The judgment would now be considered a New York judgment.
Entering Out-of-State Judgments on Default
However, if the judgment was entered on default in Florida because the defendant did not appear to defend the action, the judgment creditor must bring a full lawsuit in New York with a summons and complaint. The complaint would state the court and state of the initial judgments as well as the amount. After filing the summons and complaint, the defendant must be served with the summons and complaint by a process server under the New York Civil Rules. The Defendant can then file an answer, which may include a limited number of permissible defenses. The defendant can allege that the Florida court did not have jurisdiction over the matter, that the defendant wasn’t properly served in the original case, or that the defendant wasn’t afforded proper due process in the original case. If the court finds that any of these defenses have merit, then the judgment would not be afforded full faith and credit in New York and would be denied entry.
It is obviously faster and preferable to domesticate an out-of-state judgment awarded “on the merits” rather than having to bring suit. But what if a defendant appears early in the out-of-state action by filing an answer, then never appears again? If a judgment is later entered against the defendant for failing to appear at trial, would the judgment be considered one entered on default, especially if the judgment title reads “Final Default Judgment?”
As it turns out, New York would consider a judgment obtained under such circumstances as a judgment entered “on the merits.” Under New York precedent, a judgment is not obtained on default when a defendant appears in an action in another state by interposing an answer and then fails to appear in the later stages of the proceeding. Accordingly, the Florida court would have jurisdiction over the defendant by virtue of filing an answer. That jurisdiction did not vanish simply because the defendant did not appear thereafter. In such a case, the judgment creditor would not have to file suit on the judgment in New York and would be able to docket the judgment in New York under the first method described above.
Therefore, it is always important to check if the defendant ever made an appearance in the original action before filing suit on the judgment, even if the judgment is titled as a “default judgment.”
If you have an out-of-state judgment or a final default judgment that you are looking to file in New York, contact Frank, Frank, Goldstein and Nager. We have the experience that pays.
