A judgment has no force outside the jurisdiction that rendered it until recognised. The route depends on where enforcement is sought.
Between states of the United States, full faith and credit requires recognition, and registration statutes make domestication administrative. Defences are limited to lack of jurisdiction, lack of due process, and fraud in procurement.
Foreign country judgments are recognised under state law, with most states adopting a uniform act covering final money judgments. Recognition is generally granted subject to mandatory and discretionary grounds for refusal.
Mandatory grounds. The rendering system did not provide impartial tribunals or procedures compatible with due process; lack of personal jurisdiction; lack of subject matter jurisdiction.
Discretionary grounds. Insufficient notice; fraud depriving a party of a fair opportunity to present its case; repugnance to public policy; conflict with another final judgment; contravention of a forum selection agreement; inconvenient forum where jurisdiction rested only on personal service; and substantial doubt about the integrity of the rendering court.
Not recognised. Judgments for taxes, fines and penalties, and certain defamation judgments under specific statutes.
Practical planning. Where a counterparty’s assets are abroad, the enforceability of a judgment should influence the dispute resolution clause at drafting — arbitration awards enjoy a far more reliable enforcement regime.