Wednesday, October 17, 2007

Collecting Out-of-State (Foreign) Judgments in Utah

In today’s posting, we will briefly discuss how to collect a judgment in Utah issued from a court outside the state.

The collection of out-of-state judgments is governed by Utah’s Foreign Judgment Act. Significantly, the term foreign judgment does not include judgments from foreign countries. Rather, it means a judgment, order, or decree of a federal or state court located in any of the states or territories of the United States outside of Utah.

Once a judgment is received in an out-of-state court, a party seeking enforcement of the judgment in Utah must do the following. The person receiving the judgment or his attorney (“judgment creditor”) must file an authenticated copy of the judgment and an affidavit stating the last known post office address of the person against whom the judgment was entered (“judgment debtor”) with the clerk of a district court.

When the authenticated judgment and affidavit are filed, the clerk will send notice to the judgment debtor of the filing. Significantly, no steps can be made by the judgment creditor to enforce the judgment (i.e., garnishment) until 30 days after the judgment is filed with the clerk.

The judgment debtor may seek to stay the enforcement of the judgment. However, the judgment debtor will have to post security in the kind and amount required to stay the enforcement of a Utah (domestic) judgment. If the judgment debtor does not stay the execution of the judgment and the requirements of the Foreign Judgment Act are satisfied, then the judgment becomes a judgment lien enforceable against the judgment debtor when the judgment is recorded with a county recorder where property belonging to the judgment debtor is located.

Let me conclude with a few important notes. The Utah Foreign Judgment Act does not confer jurisdiction on Utah courts to modify the out-of-state judgment, so any modifications will need to take place in the original court. Additionally, while Utah courts typically will not disturb the judgment, Utah courts may elect to reopen the case if the judgment debtor asserts that the judgment was originally entered on account of fraud or a lack of due process, or that the out-of-state court lacked jurisdiction.

If you need assistance in collecting an out-of-state judgment in Utah, then please feel free to contact our firm.

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