TAIWAN Law and Practice Contributed by: Peng-Kwang Chen, Pamela Huang, Claudia Huang and Ching-Tzu (Katie) Chang, Formosa Transnational Attorneys At Law
attachment, auction, sale or compulsory admin- istration. If the asset to be enforced is a receivable claim against a third party, the court will render a sei- zure order to prohibit the debtor from collecting or disposing of such claim and to prohibit that third party from paying the debtor directly. Non-monetary Claims Non-monetary claims include claims for the delivery of things and claims for action and no action. With respect to claims for the delivery of things, if the asset to be enforced is movable property, the enforcement court may seize the property and deliver it directly to a creditor. If the asset to be enforced is immovable property that is cur- rently in the debtor or a third party’s posses- sion, then the court’s enforcement division may remove the property from the debtor’s or third party’s possession, and allow the creditor to take possession thereof. With respect to claims for action and no-action, the court may impose a default surcharge (ie, a sum of money as penalty for non-compliance) on debtors or even place the debtors into custody, if such claims are unable to be carried out by a third party instead. 9.5 Enforcement of a Judgment From a Foreign Country For foreign judgments that are not rendered in China, the Compulsory Enforcement Act applies. A creditor must first file a lawsuit to the court for permission to enforce the foreign judgment, before initiating the compulsory enforcement proceedings for foreign judgment. The court will recognise a foreign judgment, unless any of the following circumstances apply:
• the foreign court rendering the judgment had no jurisdiction over the case pursuant to Taiwan law; • the foreign judgment was rendered by default and the summons or court orders necessary for commencement of the action had not been duly served on the defaulting party in the foreign country or through judicial assis- tance under Taiwan’s laws; • the foreign judgment is contrary to Taiwan’s public policy or good morals; or • judgments rendered in Taiwan are not recog- nised by the country that made the foreign judgment. In the case of foreign judgments that are ren- dered in China, the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (the “Cross-Strait Relations Act”) applies. Pursuant to the Cross-Strait Relations Act, a creditor must first petition the court for recognition of such judgment, before initiat- ing the compulsory enforcement proceedings. Requirements for such recognition include that: • it is a final and irrevocable civil ruling or judg- ment; • the judgment is not contrary to the public order or good morals of Taiwan; and • a binding civil judgment made in Taiwan may obtain a recognition order or may be an enforceable title in China (ie, reciprocity requirement). 10. Appeal 10.1 Levels of Appeal or Review to a Litigation As indicated in 1.2 Court System , Taiwan’s civil judicial system consists of three levels of courts: the District Court, the High Court, and
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