Judgment Gymnastics: Enforcing Overseas Judgments And Arbitration Awards In The U.S.

Perhaps you represent a U.S. company that is entering into a contract with an overseas entity, or vice versa. You are contemplating whether the contract should provide for arbitration or litigation in the event of a dispute. In deciding that question, you may ask: if your client wins in the proceeding against the other party, is it easier to enforce a non-U.S. court judgment or a non-U.S. arbitration award in the United States?

As it turns out, each scenario presents unique challenges. There is no uniform U.S. law governing the recognition of non-U.S. judgments, but rather a patchwork of varying state laws, which can make recognition more complicated. Confirmation of non-U.S. arbitration awards, on the other hand, is governed by a single, uniform federal statute in the United States. Even so, U.S. proceedings to confirm an arbitration award have to be made on a shorter timetable than proceedings to recognize a non-U.S. judgment, and confirmation of arbitration