Recognition vs. Enforcement of Foreign Judgments
Enforcing a foreign court judgment in Japan requires two steps: recognition (accepting its legal effect) and enforcement (obtaining an enforcement judgment to execute it).
| Concept | Content |
|---|---|
| Recognition | Accepting the judgment's legal effects (res judicata, etc.) in Japan |
| Enforcement | Compelling performance in Japan based on the judgment |
Recognition may occur automatically in some contexts, but enforcement requires a separate enforcement judgment action (Civil Execution Act Article 24).
Four Requirements for Recognition (Civil Procedure Act Article 118)
Requirement 1: Finality
The foreign judgment must be final and binding (appeal period expired, appeal rejected, etc.).
Requirement 2: Jurisdiction
The foreign court must have had proper international jurisdiction, assessed by Japanese CPA and treaty standards: - Defendant had domicile/principal office in the judgment country - Contract to be performed in the judgment country - Parties agreed to that court's jurisdiction
Note: Jurisdiction based solely on the defendant's nationality may not be recognized.
Requirement 3: No Violation of Public Policy (Article 118(iii))
Recognition must not violate Japan's public order or good morals.
Examples of public policy violations: - Punitive damages exceeding actual harm - Judgments obtained through procedures violating basic principles of Japanese civil procedure - Judgments contrary to fundamental constitutional values
Requirement 4: Reciprocity (Article 118(iv))
The foreign country must recognize Japanese judgments under similar conditions.
| Status | Examples |
|---|---|
| Reciprocity established | USA (most states), Germany, France, UK |
| Contested | China (recent cases have accepted), South Korea |
| Not established | Many developing countries |
Enforcement Judgment Procedure (Civil Execution Act Article 24)
To enforce a foreign judgment in Japan, file an enforcement judgment action in a Japanese district court.
Steps
- Translate and authenticate the foreign judgment
- File the action in the district court at the debtor's domicile
- Court reviews the Article 118 requirements
- Enforcement judgment: if requirements are met, the court declares the judgment enforceable
- Enforcement: standard execution proceedings (asset seizure, etc.)
Timeline and Costs
| Item | Estimate |
|---|---|
| Duration | 6 months to 2+ years |
| Legal fees | ¥1–3 million+ |
| Court filing fees | Based on claim amount |
US Punitive Damages
US punitive damages often far exceed actual harm.
Japanese Supreme Court (July 11, 1997): The compensatory portion of a US punitive damages award is recognizable; the punitive/deterrent portion violates public policy and is not recognizable.
Foreign Judgments vs. Foreign Arbitral Awards
| Item | Foreign Judgment | Foreign Arbitral Award |
|---|---|---|
| Legal basis | CPA Art. 118; CEA Art. 24 | New York Convention; Arbitration Act Art. 46 |
| Reciprocity required | Yes | No (between Convention states) |
| Enforceable in | Limited to treaty states | 170+ countries |
Practical implication: For international commercial disputes, international arbitration offers far more reliable cross-border enforcement than court judgments.
Summary
Enforcing a foreign judgment in Japan faces significant hurdles under CPA Article 118, particularly the reciprocity requirement. Judgments from countries without established reciprocity may not be recognizable. In international transactions, selecting international arbitration as the dispute resolution mechanism — enforceable in 170+ countries under the New York Convention — is strongly recommended.