TAIWAN Law and Practice Contributed by: Yafen Lin, Peng-Kwang Chen, I-Ming Chen and Weiyu Chiang, Formosa Transnational Attorneys at Law
Of these three types of final judgment, only a judg - ment of performance is enforceable. Declaratory and formative judgments are not enforceable because their declaratory or formative effect takes effect auto - matically once the judgment becomes final. Other Enforceable Titles Other enforceable titles include: • preliminary relief such as provisional attachment, provisional injunction, or provisional enforcement; • settlement or mediation pursuant to the Taiwan Code of Civil Procedure, ie, where made in court or initiated through petition to the court; • a notarised document authorising the compulsory enforcement; • a ruling of the court permitting auction of mort - gaged or pledged collateral; • a ruling of the court granting compulsory enforce - ment of a promissory note; • a payment order; and • juvenile court fines, prosecutors’ execution orders, and town, city, and district office mediation orders. 2.2 Enforcement of Domestic Judgments Monetary Claims The enforcement procedure applicable to mone - tary claims depends on the nature of the subject of enforcement. • Where the asset to be enforced is movable proper - ty, the compulsory enforcement shall be carried out by means of attachment, auction, or sale (Article 45 of the Compulsory Enforcement Act). • Where the asset to be enforced is immovable prop - erty, the compulsory enforcement shall be carried out by means of attachment, auction, and compul - sory administration (Article 75 (1) of the Compul - sory Enforcement Act). • Where the asset to be enforced is a vessel or an aircraft, compulsory enforcement of immovable property shall apply mutatis mutandis (Article 114 (1) of the Compulsory Enforcement Act). • Where the asset to be enforced is a receivable claim against a third party, the court shall render a seizure (attachment) order to prohibit the debtor from collecting/disposing of such claim and to pro - hibit the third party from repaying the debtor. At its
discretion, the court may further issue the follow - ing types of orders (Article 115 of the Compulsory Enforcement Act): (a) a court order to allow the creditor to collect or transfer the claim to the creditor; or (b) a court order to require a third party to pay a receivable owed to the debtor to the court instead, following which the court will forward such payment to the creditor. Despite the foregoing, assets such as welfare ben - efits, social assistance, and subsidy receivables of a debtor shall not be subject to compulsory enforce - ment proceedings. Further, a seizure order rendered by the court over the salary of a debtor shall not exceed one-third of such salary. Non-Monetary Claims Non-monetary claims include: (i) claims for the deliv - ery of property; and (ii) claims to perform or refrain from performing an act. With respect to claims for the delivery of property, if the asset to be enforced is movable property and the debtor fails to comply with the court order requiring delivery, the court may seize the property and deliver it directly to the creditor. If the relevant property is immovable property that must be delivered pursuant to a court order and the debtor fails to comply, the court may remove the property from the debtor’s possession and place the creditor in possession. In practice, a court clerk will be present at the location of the real property to be enforced, usually together with local police officers, to take physical control of the property from the debtor. Where the enforceable title relates to claims to per - form or refrain from performing an act, the court may impose a default surcharge (ie, a monetary penalty for non-compliance) on the debtor or even place the debtor into custody if the obligation cannot be per - formed by a third party instead. 2.3 Costs and Time Taken to Enforce Domestic Judgments For non-property enforcement, the cost of enforce - ment proceedings is fixed at TWD3,000 (USD101). For
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