USA – NEW YORK Trends and Developments Contributed by: Alex Loomis and Gregg Badichek, Quinn Emanuel Urquhart & Sullivan, LLP
Quinn Emanuel Urquhart & Sullivan, LLP 295 5th Avenue 9th Floor New York, New York 10016 USA
Tel: +1 212 849 7000 Fax: +1 212 849 7100 Email: alexloomis@quinnemanuel.com Web: www.quinnemanuel.com/practice-areas/glob - al-asset-recovery-practice/
New York continues to lead as a global centre for commercial litigation. Its robust creditor rem - edies and jurisdiction over both domestic and international financial actors make it an espe - cially potent venue for claimants seeking to enforce judgments against fraudulent debtors and to find their concealed assets. Courts have refined New York law governing post-judgment discovery, veil-piercing, sovereign immunity, and the recognition of foreign country judgments. This article explores those developments in detail, focusing on the issues that are now shap - ing global asset recovery strategy in New York. Recognition of Foreign Judgments: New York’s Liberal Policy Whenever possible, a foreign judgment credi - tor trying to collect assets against a fraudster should seek to domesticate their judgment in New York. New York banks have ample access to records not only of accounts that debtors may have there, but also of the movement of debtors’ assets worldwide. New York law often allows for post-judgment discovery of assets belonging
to judgment debtors’ affiliates, principals, and agents, even if the property is located abroad. And New York courts (as discussed below) often allow for execution on judgment debtors’ prop - erty located abroad, so long as the defendant or garnishee is subject to their jurisdiction. Taking advantage of these procedures is easy when a judgment creditor has a US judgment. New York state and federal law allow for imme - diate, ministerial confirmation of any such judg - ments, which are entitled to recognition and enforcement under the Constitution’s Full Faith and Credit Clause. Foreign country money judgments are not enti - tled to automatic recognition, by contrast, but must instead be recognised under New York Civil Practice Law and Rules (CPLR) Article 53. Article 53 – New York’s codification of the Uni - form Foreign-Country Money Judgments Rec - ognition Act – allows for recognition of foreign final money judgments as US judgments, unless the judgment debtor shows that certain “nonrec-
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