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BizIPEsq., Attorney
Category: Business Law
Satisfied Customers: 996
Experience:  I am a business attorney. I represent individuals and companies with all business related matters.
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Question, if a person has a business in another country, e.g.

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Question, if a person has a business in another country, e.g. a sole proprietorship and someone sues in the other country against the business (but that was a sole proprietorship) - e.g. for employee related benefits, etc., can the person collect in the USA on the claim they "won" in the foreign country against my assets? Could the person sue in the USA because of their "employee" contract in the foreign country? Is there any way they can collect in the USA? Thanks.

BizIPEsq. :

Hello, I will be assisting you

BizIPEsq. :

Under Article IV Section 1 of the US constitution (known as the "Full Faith and Credit Clause") the 50 states respect judgments in each state. There are not such provisions internationally

BizIPEsq. :

In addition there is no bilateral treaty or multilateral international convention in force between the United States and any other country on reciprocal recognition and enforcement of judgments. In most states the recognition and enforcement of foreign judgments is governed by local statutes and the principles of comity, reciprocity and res judicata. This means that the judgment holder will have to go to court in the US and claim that:

BizIPEsq. :

(1) the foreign court had jurisdiction; (2) the defendant was properly served; (3) the proceedings were not fraudulant; and (4) that the judgment is not contrary to the public policy of the foreign country and the US.

BizIPEsq. :

Only then with the approval of the court will a local enter judgment in the US

BizIPEsq. :

At these proceedings the US defendant would be able to petition the court to dismiss the case, dismiss the foreign judgment or demand a US trial

BizIPEsq. :

In conclusion, it is possible to collect a foreign judgment in the US but it requires a court proceedings demonstrating the validity of the judgment

BizIPEsq. :

Thank you for allowing me to assist you

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Customer:

Would it be possible to go into all of these?

Customer:

(1) the foreign court had jurisdiction; (2) the defendant was properly served; (3) the proceedings were not fraudulant; and (4) that the judgment is not contrary to the public policy of the foreign country and the US.

Customer:

I'm assuming that the 'standard' for each would be the USA standard, right? What are the US standards that would have to have been upheld for each of these?

BizIPEsq. :

The elements and standards are dependent on state law. In additional it is impossible to say at this early stage what how would each element play out without first seeing the underlying complaint that the foreign individual might bring.

BizIPEsq. :

In addition, there is no standard per say other than that certain state may statutory provisions that guide the acceptance of foreign judgments and then there are likely a multitude of cases that further explain the acceptance of such standards. As in any litigation the legal research that would be needed to address such cases is extensive.

BizIPEsq. :

Finally, much also depends on the facts surrounding the case and the foreign country and the court system there. A US court might give more deference to common law countries than to civil law countries or countries where the impartiality of the justice system is in question.

Customer:

This has to do with employee rights,

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