The recognition of US-American judgments
in Germany

International receivables management in Germany and the USA

Strong partner in the enforcement of US judgments

The recognition of US judgments in Germany

International receivables management

International enforcement in the Federal Republic of Germany and in the EU
You have obtained a judgment in the United States (Judgment) in your favor, but the debtor in the USA does not meet his payment obligations. For you as a creditor, such an outcome is a great disappointment after a potentially lengthy and cost-intensive process. However, it is also possible to have a US judgment enforced in Germany. However, this enforcement is not automatic, but requires a special procedure known as the exequatur procedure or recognition procedure in accordance with the German Code of Civil Procedure (ZPO). At the center of the exequatur procedure are the provisions of the § SECTION 722 ZPO and § 328 ZPO.
 
In this article, we explain in detail how you can successfully carry out an exequatur procedure or recognition procedure, which steps are necessary for this and which challenges you need to be prepared for, especially when recognizing US judgments in the Federal Republic of Germany. For all those who would first like to familiarize themselves with the basics of the recognition and enforcement of US judgments, we recommend our informative article on the Fundamentals of international enforcement.
 

The recognition of a US judgment in Germany is a complex legal undertaking that requires specific knowledge of German and international law. Therefore, advice from an experienced lawyer or attorney is essential to have the best chance of successful enforcement. A lawyer can guide you through the exequatur process, from checking the requirements for recognition to initiating enforcement against the debtor in Germany.

In this article, you will learn how you can have a US judgment recognized in order to successfully enforce it in Germany.

Recognition of US judgments in Germany

Legal basis for the recognition of US judgments in Germany

Legal basis for recognition under the Code of Civil Procedure

In Germany, the legal basis for the recognition of judgments handed down in the United States is primarily based on the provisions of the German Code of Civil Procedure (ZPO). Although a bilateral agreement between the USA and the European Union exists and has been ratified by the EU, the United States has yet to ratify it. As a result, German judgments are recognized in the USA in accordance with the legal provisions of the individual US states.

Against this background, it is essential that the procedures for the recognition of US judgments in Germany follow the general rules of civil procedure of the Federal Republic of Germany. This means that applications for recognition and enforcement must be made in accordance with the specific requirements of Sections 722 and 328 of the German Code of Civil Procedure (ZPO), which regulate the procedures and requirements for the recognition of foreign judgments in detail.

It is therefore essential to familiarize yourself with the relevant legal framework in order to successfully complete the recognition or exequatur procedure. The support of a lawyer who is well-versed in these matters can be crucial in order to navigate the necessary steps efficiently and correctly. A lawyer can not only advise on the application, but also help to overcome potential obstacles, such as compliance with public policy or the verification of reciprocity of the recognition practice.

It is important to emphasize that although the recognition and enforcement of US judgments in Germany is possible, the process requires precise knowledge of the legal requirements and careful preparation. The specific characteristics of the case and the details of the US judgment play a significant role and must be adequately taken into account in the recognition process.

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What needs to be prepared before initiating the exequator procedure?

Checklist for preparing the recognition of US judgments in Germany

Before a US judgment can be recognized and enforced in Germany, a number of essential preparations must be made during the recognition procedure. First of all, it is essential to specify and prove in detail all the requirements for recognition. 

A central aspect of this is that the language of the courts in the Federal Republic of Germany is defined by § Section 184 of the German Courts Constitution Act (GVG) is German. This also applies in cases in which the judges of the competent civil chamber at the regional court speak English. It is the task of the court to examine in German whether the judgment to be recognized complies with the fundamental principles of the German legal system.

Therefore, a professional translation of the US judgment by a court-appointed translator is required. This translator will translate the judgment into German and confirm with his or her stamp that the translation corresponds to the original text. Translations by translators who are not licensed in Germany are often viewed skeptically by German courts or may even be considered inadmissible. An inaccurate or inadequate translation can lead to the application for recognition being rejected.

Another important element is proof of the legal force of the US judgment by means of an official notice of res judicata. This confirms that the judgment can no longer be appealed against in the USA and that the judgment is enforceable there.

It is also necessary to check whether the judgment contains punitive damages. As punitive damages contradict the principles of German law, they represent an absolute obstacle to recognition in Germany and are not recognized by the German legal system.

Once these preparations have been made, an application for recognition of the US judgment can be submitted to the competent district court by a lawyer. Representation by a lawyer is mandatory, as according to § 78 ZPO only lawyers are eligible to appear before a regional court. 

This underscores the importance of hiring a lawyer who is not only familiar with the intricacies of German and international law, but also knows the steps necessary to successfully complete the recognition and exequatur process.

Checklist on the requirements for the recognition of foreign judgments

The exequator proceedings at the district court

Procedure and duration of the recognition procedure in Germany

The procedure for recognition of a US judgment in Germany begins with the submission of the statement of claim to the regional court deemed to have jurisdiction. Jurisdiction is based on the debtor's place of residence in Germany or, if the debtor is not resident in Germany, on the location of the claim to be enforced or the debtor's existing assets. This potentially gives the creditor the right to choose the regional court to be called upon.

After the statement of claim has been filed, the court assigns a file number and requests the debtor to prepare his defense and to present his means of attack and defense within a statutory period. The deadline set for the statement of defense is considered an emergency deadline, whereby an extension of the deadline for filing a statement of defense is possible.

If the debtor does not file a defense against the application, the court can issue a default judgment, on the basis of which enforcement can be carried out immediately - i.e. without the need to provide security and before the expiry of any appeal periods.

However, if the debtor submits a defense and the court considers the submission to be material, a reply to the statement of defence is required. It should be noted that the court does not examine the debtor's substantive objections. The court focuses exclusively on formal aspects such as problems with service and examines whether the judgment complies with the principles of public policy.

If the case is deemed ready for a decision, an oral hearing follows in which the parties to the dispute present their applications. The court then decides the case by means of an enforcement judgment.

The duration of the entire process can vary between six weeks and one year. However, if an appeal is lodged, the process can take several years, depending on the place of jurisdiction.

However, before the recognition proceedings are initiated, it is advisable to identify the debtor's potential assets in Germany. If such assets exist and there is a risk that they will be seized, a temporary injunction can be obtained to seize these assets. This temporary order serves to restrict the debtor's power of disposal over the assets in question and thus create the basis for successful enforcement. However, an attachment order does not secure the collection of the claim or the object, which must be clarified in court as part of the main proceedings - the exequatur proceedings.

This strategic measure can make a significant contribution to increasing the chances of successful enforcement and minimizing the risk of the creditor coming away empty-handed at the end of the proceedings.

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Best practice in the exequator method

Recommendations for the realization of receivables

For entrepreneurs and private investors operating on the international market and seeking to enforce international claims, forward-looking and strategic action is essential. The key to success in this complex field lies in legal advice that is tailored to the specialty at an early stage. This approach makes it possible to effectively master the many challenges and complexities of international law. The importance of carefully reviewing all necessary documents cannot be overemphasized, as Alexander Thorlton, Attorney at Law, and lawyer Patrick Baumfalk. Such a step is critical in order to avoid possible delays or obstacles in the enforcement process and thus ensure efficient enforcement of your claims.

A comprehensive understanding of the necessary legal steps and procedures not only speeds up the process, but also helps to identify and avoid potential pitfalls in good time. In the dynamic landscape of international law, the ability to adapt to new legal frameworks and regulations is invaluable. Thorlton and Baumfalk's expertise in the latest developments and legal requirements optimizes efficiency in the enforcement process and significantly increases the chances of success in debt collection.

A combination of careful planning, thorough preparation of documents and profound legal understanding creates the optimal foundation for the effective enforcement of international claims. This methodical approach strategically strengthens your position in international legal relations.

The practical steps recommended here underline the central importance of comprehensive preparation and the use of professional legal support in the complex field of international enforcement. By following these guidelines, you will lay a solid foundation for the successful enforcement of your international claims and safeguard your business interests. Working with experienced legal experts such as Thorlton and Baumfalk opens up ways for you to effectively realize and secure your legal and financial goals in the global marketplace.

In addition, continuous adaptation to the changing requirements of the international legal framework is crucial. Up-to-date knowledge of developments and legal provisions is crucial to maximize efficiency in the enforcement process and increase the likelihood of successful debt collection. Careful planning, strategic preparation of documents and in-depth legal expertise will position your international claims for successful enforcement.

These practical recommendations emphasize the importance of comprehensive preparation and the use of professional assistance in the international enforcement process. By following these guidelines, you will create a solid foundation for the effective realization of your international claims and ensure that your business interests are protected and promoted.

Do you need support in realizing US claims in Germany?

Then contact us

+49 (0) 2273 - 40 68 504

+1 954-951-1003

info@kanzlei-baumfalk.de

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International enforcement law in Kerpen and Witten

International enforcement in the Federal Republic of Germany and in the EU

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Main office - Kerpen
Mr. Patrick Baumfalk, attorney at law
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Germany

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Mr. Patrick Baumfalk, attorney at law
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58452 Witten
Germany

Our cooperation partner in the USA, FL, Merritt Island, Spacecoast and Miami, USA:

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