Domesticating and Enforcing Out-of-State Judgments in Texas

A judgment entered outside Texas doesn't authorize a Texas sheriff, constable, bank, or receiver to enforce it. Before using Texas collection remedies, a judgment creditor must establish an enforceable judgment in the Texas court system or register a qualifying federal judgment in a Texas federal court.

Texas provides different procedures for sister-state judgments, federal judgments, foreign-country judgments, and arbitration awards. You should identify the source and status of the judgment before filing because each procedure has different requirements, defenses, and limitation periods.

Identify the Judgment You Hold

The Uniform Enforcement of Foreign Judgments Act, commonly called the UEFJA, governs qualifying judgments from other states and courts of the United States. Section 35.001 defines a foreign judgment as a judgment, decree, or order of a federal court or another court that is entitled to full faith and credit in Texas.

Chapter 35 applies to a court judgment rather than an arbitration award by itself. If an arbitrator issued an award, the prevailing party generally must obtain a judgment confirming the award before seeking enforcement through the UEFJA. You should obtain a complete copy of the judgment and confirm its finality, enforceability, balance, interest, credits, and ownership before filing in Texas.

Finality depends on the law of the jurisdiction that entered the judgment. A judgment may remain final and enforceable during an appeal under that jurisdiction's law. Chapter 35 separately addresses when a Texas court must stay enforcement during an appeal.

Full Faith and Credit

Article IV, Section 1 of the United States Constitution requires states to respect the judicial proceedings of other states. 28 U.S.C. Section 1738 prescribes authentication requirements and provides that an authenticated state judicial proceeding receives the same full faith and credit in every United States court that it receives in the state of origin.

Texas must therefore give a qualifying sister-state judgment the same force it has in the rendering state. The rendering court's resolution of liability, damages, evidentiary rulings, and defenses generally binds the parties in the Texas proceeding.

Civil Practice and Remedies Code Chapter 36A governs Texas recognition of qualifying foreign-country money judgments. Those judgments fall outside the constitutional full faith and credit requirement.

Filing Under Chapter 35

Section 35.003 permits a judgment creditor to file an authenticated copy of the foreign judgment with the clerk of a Texas court of competent jurisdiction. Court selection depends on the judgment and the Texas court's subject matter jurisdiction. Section 35.007 requires the creditor to pay the filing fees charged for a lawsuit in that court.

Authentication must comply with an act of Congress or Texas law. For a sister-state judgment authenticated under 28 U.S.C. Section 1738, the record bears the court clerk's attestation and seal, if the court has one, together with a judge's certificate that the attestation is proper. Court clerks may call this an exemplified or triple-certified copy. You should order the form of authenticated judgment required for interstate enforcement rather than rely on an ordinary file-stamped copy.

At the time of filing, Section 35.004 requires the creditor or the creditor's attorney to file an affidavit stating the name and last known post office address of both the judgment debtor and the judgment creditor. The creditor or attorney must promptly mail notice of the filing to the debtor at the address stated in the affidavit and file proof of mailing with the clerk. Notice must identify the creditor's name and post office address and, when the creditor has a Texas attorney, that attorney's name and address.

The current statute assigns mailing and proof of mailing to the judgment creditor or attorney. Once the clerk receives proof of mailing, the clerk must note the mailing in the docket. You should preserve the mailing record because proper notice affects enforcement and the debtor's opportunity to seek post-judgment relief.

Filing Creates a Texas Judgment

The Texas Supreme Court explained in Walnut Equipment Leasing Co. v. Wu, 920 S.W.2d 285, 286 (Tex. 1996), that filing under the UEFJA functions as both an original petition and a final judgment. Section 35.003 requires the clerk to treat the filed judgment like a judgment of the Texas court, and the judgment becomes subject to the same procedures, defenses, and proceedings for reopening, vacating, staying, enforcing, or satisfying a Texas judgment. Proper Chapter 35 filing creates the Texas judgment without requiring the creditor to prove the original claim again, conduct a second trial, or obtain another signed judgment after service of citation.

A debtor who contests recognition generally must act within the Texas court's post-judgment timetable. Under Walnut Equipment, a motion contesting recognition filed within 30 days after the foreign judgment is filed functions as a motion for new trial. Notice under Section 35.004 deserves immediate attention because missed post-judgment deadlines can foreclose relief.

Texas Rule of Civil Procedure 627 generally prevents issuance of a writ of execution until 30 days after rendition of a final judgment, subject to Rule 628 and other law. You should calculate the enforcement date from the Texas filing and the remedy you intend to pursue.

Grounds for Opposing Recognition

An authenticated judgment that appears final, valid, and subsisting establishes a prima facie case for enforcement. The debtor then bears the burden of proving a recognized reason to deny full faith and credit. Texas appellate courts require evidence meeting the "clear and convincing" standard to overcome the judgment's presumed validity.

Texas courts recognize five established grounds. The judgment may be interlocutory, subject to modification under the rendering state's law, entered without jurisdiction, procured through extrinsic fraud, or barred by the applicable enforcement period. Mindis Metals, Inc. v. Oilfield Motor & Control, Inc., 132 S.W.3d 477, 484 (Tex. App. Houston [14th Dist.] 2004, pet. denied), collected those grounds.

Extrinsic fraud prevents a party from presenting a claim or defense to the rendering court. Allegations that evidence was false, testimony was perjured, or the rendering court decided the merits incorrectly ordinarily attack the original adjudication and fall outside extrinsic fraud.

A jurisdictional objection may include lack of personal jurisdiction caused by defective service or insufficient contacts with the rendering state. A full and fair jurisdictional decision by the rendering court generally binds the debtor in Texas. You should obtain the pleadings, service record, appearances, and jurisdictional orders before asserting or opposing that challenge.

Appeals and Enforcement Stays

Section 35.006 requires a stay when the debtor proves that an appeal is pending or will be taken, the time to appeal hasn't expired, or a stay has been granted or requested, and the debtor has furnished or will furnish the security required by the rendering state. The Texas court must continue the stay until the appeal concludes, the appeal period expires, or the stay expires or is vacated.

Texas grounds for suspending enforcement also apply. If the debtor establishes a ground that would stay enforcement of a Texas judgment, the court must stay the foreign judgment for an appropriate period and require the security Texas law requires under Section 52.006.

Limitations and Dormancy

Section 16.066 bars a Texas action on a foreign judgment when enforcement is barred in the jurisdiction that rendered it. The section also bars an action against a person who resided in Texas for 10 years before the action when the foreign judgment was rendered more than 10 years before the Texas proceeding began.

You should examine the rendering jurisdiction's enforcement and renewal rules before relying on Texas's 10-year period. Expiration under the rendering jurisdiction's law bars Texas enforcement.

Proper UEFJA filing creates a separate Texas judgment on the filing date. In Ware v. Everest Group, L.L.C., 238 S.W.3d 855, 863-64 (Tex. App. Dallas 2007, pet. denied), the court treated that filing date as the rendition date for Texas dormancy. Under Section 34.001, the Texas judgment becomes dormant if the creditor fails to issue a writ of execution within 10 years after rendition, and a subsequent writ begins another 10-year period. Section 31.006 permits revival within two years after dormancy.

Federal Judgments

A federal judgment may support state or federal enforcement. Chapter 35 defines foreign judgment to include a judgment of a court of the United States. In Tanner v. McCarthy, 274 S.W.3d 311 (Tex. App. Houston [1st Dist.] 2008, no pet.), the court held that the UEFJA applies even to a judgment issued by a federal court located in Texas.

Texas Property Code Section 52.007 also permits recording and indexing an abstract of a federal judgment rendered in Texas on the federal court clerk's certificate. A creditor using the federal court system may enforce through Federal Rule of Civil Procedure 69 and the issuing court's process.

For enforcement in another federal district, 28 U.S.C. Section 1963 permits registration of a qualifying federal judgment by filing a certified copy in that district after the judgment becomes final by appeal or expiration of the appeal period. The issuing court may authorize earlier registration for good cause. Once registered, the judgment has the same effect as a judgment entered by the federal district court where registration occurred and may be enforced in the same manner.

You should choose between Texas state filing and federal registration based on the judgment, asset location, available discovery, court jurisdiction, and the remedies required for collection.

Foreign-Country Money Judgments

Judgments from courts outside the United States follow Chapter 36A, the Uniform Foreign-Country Money Judgments Recognition Act. The Legislature enacted Chapter 36A in 2017 and repealed former Chapter 36.

Chapter 36A applies when the foreign-country judgment grants or denies recovery of money and is final, conclusive, and enforceable under the law of the country that issued it. The chapter excludes judgments for taxes, fines or other penalties, and domestic-relations obligations. The party seeking recognition bears the burden of establishing that Chapter 36A applies.

When recognition is the original issue, Section 36A.006 requires an action seeking recognition. A party may raise recognition in a pending lawsuit through a counterclaim, cross-claim, or affirmative defense. If the court recognizes the judgment, Section 36A.007 makes it conclusive between the parties and enforceable like a Texas judgment.

Chapter 36A contains mandatory and discretionary grounds for nonrecognition, including specified failures of due process, jurisdiction, notice, impartiality, public policy, and reciprocity. Under Section 36A.009, an action must be filed within the earlier of the period during which the judgment is effective in the foreign country or 15 years after it became effective there.

Common-Law Enforcement

Section 35.008 preserves a creditor's right to bring an action to enforce a judgment instead of using the UEFJA. A common-law action proceeds as a lawsuit with pleadings, citation, service, and a Texas judgment after adjudication.

That procedure may fit a case involving independent claims against additional parties, disputed judgment ownership, or relief beyond recognition of the judgment. A Texas court binds additional defendants only through claims supported by jurisdiction, service, admissible proof, and an independent legal basis.

Enforcement After Domestication

After Chapter 35 filing and any applicable stay or waiting period, the creditor may use Texas post-judgment remedies. Those remedies include abstracts of judgment, writs of execution, garnishment, turnover relief, receivership, and post-judgment discovery. Our article on post-judgment enforcement in Texas explains those procedures.

Texas exemptions apply to domesticated judgments. Homesteads, current wages, specified personal property, qualified savings plans, insurance benefits, and protected federal deposits may be unavailable for collection even after proper domestication. Our article on Texas property exemptions for judgment creditors addresses those protections.

You should file in the correct court, satisfy authentication and notice requirements, calendar the debtor's post-judgment deadlines, and identify Texas assets before paying for collection proceedings. Domestication establishes Texas enforcement authority. Recovery depends on locating nonexempt property and selecting the remedy that applies to it.

This article is general information about the law, not legal advice, and reading it does not create an attorney-client relationship. Laws change and how they apply depends on your specific facts. For advice on your situation, consult a qualified attorney.

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