JAPAN Law and Practice Contributed by: Hiroki Wakabayashi, Kenichi Sadaka and Kei Akagawa, Anderson Mori & Tomotsune
• a formative judgment creating, altering or nul- lifying a certain legal relationship; or • a declaratory judgment. In all types of judgments, the defeated party is ordered to bear all or part of the court fees (such as filing fees or witnesses’ expenses) disbursed by the successful party. A judgment ordering specific performance is accompanied by an order to pay delinquency charges until full per- The court determines the amount of damages based on the actual damage incurred by the party which has convinced the court that the other party is liable. No punitive damages are available. There is no rule limiting the maximum damages, except that the amount awarded in the court judgment may not exceed the amount claimed by the successful party. 9.3 Pre-judgment and Post-judgment Interest The successful party may collect interest from the day on which the defeated party becomes delinquent in its monetary obligation until the date on which the defeated party has fully per- formed the monetary obligation. In calculating both pre- and post-judgment interest, the court generally uses a statutory rate, which is cur- rently 3% per annum until 31 March 2026 and will be reviewed as of 1 April 2026, and every three years thereafter. In cases where the claim is based on a contract that provides a different interest rate, the court uses the contractual rate. 9.4 Enforcement Mechanisms of a Domestic Judgment The Civil Execution Act (Act No 4 of 1979, or CEA) provides the mechanism for enforcement of judgments. Under the CEA, a domestic judg- formance by the defeated party. 9.2 Rules Regarding Damages
ment ordering payment of money is enforced by attachment of the defeated party’s assets (such as bank accounts, accounts receivable, lease deposit, real estate and movables). A judgment ordering the evacuation of premises or surren- dering of movables is enforced by physical coer- cion by a court execution officer. Other types of non-monetary judgments are likewise enforced in accordance with the CEA. 9.5 Enforcement of a Judgment From a Foreign Country To enforce a foreign judgment in Japan, the enforcing party needs to file a lawsuit with a Japanese court seeking an execution judgment (Article 24 of the CEA). The court cannot review the merits of the foreign judgment, and must grant the execution judgment if all of the follow- ing conditions provided for in Article 118 of the CCP are satisfied: • The foreign judgment is final and conclusive. • The jurisdiction of the foreign court is rec- ognised pursuant to laws and regulations, conventions, or treaties. • The defeated party has been properly served or has appeared without being so served. • The content of the judgment and the litigation proceedings are not contrary to public policy in Japan. • A guarantee of reciprocity is in place. Once the execution judgment is rendered and becomes final and conclusive, the enforcing party is able to proceed with enforcement of the foreign judgment in Japan in the same manner as set forth in 9.4 Enforcement Mechanisms of a Domestic Judgment .
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