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AB-905 Money judgments of other jurisdictions.(2017-2018)

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Date Published: 08/07/2017 09:00 PM
AB905:v96#DOCUMENT

Assembly Bill No. 905
CHAPTER 168

An act to amend Sections 1714, 1716, 1717, 1730, 1731, 1732, 1733, 1737, and 1741 of, to amend the heading of Title 11 (commencing with Section 1710.10) of Part 3 of, to amend the heading of Chapter 1 (commencing with Section 1710.10) of Title 11 of Part 3 of, to add Section 1725 to, to add the heading of Chapter 3 (commencing with Section 1730) of Title 11 of Part 3 to, and to repeal Sections 1714 and 1742 of, and to repeal the heading of Title 11.5 (commencing with Section 1730) of Part 3 of, the Code of Civil Procedure, relating to civil procedure.

[ Approved by Governor  August 07, 2017. Filed with Secretary of State  August 07, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 905, Maienschein. Money judgments of other jurisdictions.
Existing law establishes procedures for California courts to recognize money judgments of courts from other states, foreign countries, and tribal courts.
This bill would revise and recast these provisions.
Existing law, the Uniform Foreign-Country Money Judgments Recognition Act, requires a California court to recognize a foreign-country judgment unless a specified exception applies, including instances in which the foreign court lacks personal jurisdiction over the defendant.
This bill would specify that a foreign court lacks personal jurisdiction over a defendant if the court lacks personal jurisdiction under its own laws or California’s laws.
Existing law, the Tribal Court Civil Money Judgment Act, provides for the enforceability of tribal court money judgments in California, except as specified. That act, among other things, prescribes the procedure for applying for recognition and entry of a judgment based on a tribal court money judgment, and requires this application to be executed under penalty of perjury. The act provides that it will remain in effect until January 1, 2018. After that date, tribal court money judgments will be governed by the above-described Uniform Foreign-Country Money Judgments Recognition Act.
This bill would eliminate the Tribal Court Civil Money Judgment Act’s sunset date. By extending the provisions of the act, this bill would expand the scope of the crime of perjury and thus impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Title 11 (commencing with Section 1710.10) of Part 3 of the Code of Civil Procedure is amended to read:

TITLE 11. MONEY JUDGMENTS OF OTHER JURISDICTIONS

SEC. 2.

 The heading of Chapter 1 (commencing with Section 1710.10) of Title 11 of Part 3 of the Code of Civil Procedure is amended to read:
CHAPTER  1. Sister State Money Judgments

SEC. 3.

 Section 1714 of the Code of Civil Procedure, as amended by Section 2 of Chapter 243 of the Statutes of 2014, is amended to read:

1714.
 As used in this chapter:
(a) “Foreign country” means a government other than any of the following:
(1) The United States.
(2) A state, district, commonwealth, territory, or insular possession of the United States.
(3) A federally recognized Indian nation, tribe, pueblo, band, or Alaska Native village.
(4) Any other government with regard to which the decision in this state as to whether to recognize a judgment of that government’s courts is initially subject to determination under the Full Faith and Credit Clause of the United States Constitution.
(b) “Foreign-country judgment” means a judgment of a court of a foreign country.

SEC. 4.

 Section 1714 of the Code of Civil Procedure, as added by Section 3 of Chapter 243 of the Statutes of 2014, is repealed.

SEC. 5.

 Section 1716 of the Code of Civil Procedure is amended to read:

1716.
 (a) Except as otherwise provided in subdivisions (b), (c), (d), and (f), a court of this state shall recognize a foreign-country judgment to which this chapter applies.
(b) A court of this state shall not recognize a foreign-country judgment if any of the following apply:
(1) The judgment was rendered under a judicial system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law.
(2) The foreign court did not have personal jurisdiction over the defendant.
(3) The foreign court did not have jurisdiction over the subject matter.
(c) (1) A court of this state shall not recognize a foreign-country judgment if any of the following apply:
(A) The defendant in the proceeding in the foreign court did not receive notice of the proceeding in sufficient time to enable the defendant to defend.
(B) The judgment was obtained by fraud that deprived the losing party of an adequate opportunity to present its case.
(C) The judgment or the cause of action or claim for relief on which the judgment is based is repugnant to the public policy of this state or of the United States.
(D) The proceeding in the foreign court was contrary to an agreement between the parties under which the dispute in question was to be determined otherwise than by proceedings in that foreign court.
(E) In the case of jurisdiction based only on personal service, the foreign court was a seriously inconvenient forum for the trial of the action.
(F) The judgment was rendered in circumstances that raise substantial doubt about the integrity of the rendering court with respect to the judgment.
(G) The specific proceeding in the foreign court leading to the judgment was not compatible with the requirements of due process of law.
(2) Notwithstanding an applicable ground for nonrecognition under paragraph (1), the court may nonetheless recognize a foreign-country judgment if the party seeking recognition of the judgment demonstrates good reason to recognize the judgment that outweighs the ground for nonrecognition.
(d) A court of this state is not required to recognize a foreign-country judgment if the judgment conflicts with another final and conclusive judgment.
(e) If the party seeking recognition of a foreign-country judgment has met its burden of establishing recognition of the foreign-country judgment pursuant to subdivision (c) of Section 1715, a party resisting recognition of a foreign-country judgment has the burden of establishing that a ground for nonrecognition stated in subdivision (b), (c), or (d) exists.
(f) A court of this state shall not recognize a foreign-country judgment for defamation if that judgment is not recognizable under Section 4102 of Title 28 of the United States Code.

SEC. 6.

 Section 1717 of the Code of Civil Procedure is amended to read:

1717.
 (a) For the purpose of paragraph (2) of subdivision (b) of Section 1716, a foreign court lacks personal jurisdiction over a defendant if either of the following conditions is met:
(1) The foreign court lacks a basis for exercising personal jurisdiction that would be sufficient according to the standards governing personal jurisdiction in this state.
(2) The foreign court lacks personal jurisdiction under its own law.
(b) A foreign-country judgment shall not be refused recognition for lack of personal jurisdiction under paragraph (1) of subdivision (a) if any of the following apply:
(1) The defendant was served with process personally in the foreign country.
(2) The defendant voluntarily appeared in the proceeding, other than for the purpose of protecting property seized or threatened with seizure in the proceeding or of contesting the jurisdiction of the court over the defendant.
(3) The defendant, before the commencement of the proceeding, had agreed to submit to the jurisdiction of the foreign court with respect to the subject matter involved.
(4) The defendant was domiciled in the foreign country when the proceeding was instituted or was a corporation or other form of business organization that had its principal place of business in, or was organized under the laws of, the foreign country.
(5) The defendant had a business office in the foreign country and the proceeding in the foreign court involved a cause of action or claim for relief arising out of business done by the defendant through that office in the foreign country.
(6) The defendant operated a motor vehicle or airplane in the foreign country and the proceeding involved a cause of action or claim for relief arising out of that operation.
(c) The list of bases for personal jurisdiction in subdivision (b) is not exclusive. The courts of this state may recognize bases of personal jurisdiction other than those listed in subdivision (b) as sufficient for the purposes of paragraph (1) of subdivision (a).

SEC. 7.

 Section 1725 is added to the Code of Civil Procedure, to read:

1725.
 (a) If all of the following conditions are satisfied, a person against whom a foreign-country defamation judgment was rendered may seek declaratory relief with respect to liability for the judgment or a determination that the judgment is not recognizable under section 1716:
(1) The person is a resident or other person or entity amendable to jurisdiction in this state.
(2) The person either has assets in this state that may be subject to an enforcement proceeding to satisfy the foreign-country defamation judgment or may have to take actions in this state to comply with the foreign-country defamation judgment.
(3) The publication at issue was published in this state.
(b) A court of this state has jurisdiction to determine a declaratory relief action or issue a determination pursuant to this section and has personal jurisdiction over the person or entity who obtained the foreign-country defamation judgment.
(c) This section shall apply to a foreign-country defamation judgment regardless of when it was rendered.

SEC. 8.

 The heading of Title 11.5 (commencing with Section 1730) of Part 3 of the Code of Civil Procedure is repealed.

SEC. 9.

 The heading of Chapter 3 (commencing with Section 1730) is added to Title 11 of Part 3 of the Code of Civil Procedure, to read:
CHAPTER  3. Tribal Court Civil Money Judgment Act

SEC. 10.

 Section 1730 of the Code of Civil Procedure is amended to read:

1730.
 This chapter shall be known and may be cited as the Tribal Court Civil Money Judgment Act.

SEC. 11.

 Section 1731 of the Code of Civil Procedure is amended to read:

1731.
 (a) This chapter governs the procedures by which the superior courts of the State of California recognize and enter tribal court money judgments of any federally recognized Indian tribe. Determinations regarding recognition and entry of a tribal court money judgment pursuant to state law shall have no effect upon the independent authority of that judgment. To the extent not inconsistent with this chapter, the Code of Civil Procedure shall apply.
(b) This chapter does not apply to any of the following tribal court money judgments:
(1) For taxes, fines, or other penalties.
(2) For which federal law requires that states grant full faith and credit recognition, including child support orders under the Full Faith and Credit for Child Support Orders Act (28 U.S.C. Sec. 1738B).
(3) For which state law provides for recognition, including child support orders recognized under the Uniform Child Custody Jurisdiction and Enforcement Act (Part 3 (commencing with Section 3400) of Division 8 of the Family Code), other forms of family support orders under the Uniform Interstate Family Support Act (Part 6 (commencing with Section 5700.101) of Division 9 of the Family Code).
(4) For decedents’ estates, guardianships, conservatorships, internal affairs of trusts, powers of attorney, or other tribal court money judgments that arise in proceedings that are or would be governed by the Probate Code.
(c) Nothing in this chapter shall be deemed or construed to expand or limit the jurisdiction of either the state or any Indian tribe.

SEC. 12.

 Section 1732 of the Code of Civil Procedure is amended to read:

1732.
 For purposes of this chapter:
(a) “Applicant” means the person or persons who can bring an action to enforce a tribal court money judgment.
(b) “Civil action or proceeding” means any action or proceeding that is not criminal, except for those actions or proceedings expressly excluded by subdivision (b) of Section 1731.
(c) “Due process” includes, but is not limited to, the right to be represented by legal counsel, to receive reasonable notice and an opportunity for a hearing, to call and cross-examine witnesses, and to present evidence and argument to an impartial decisionmaker.
(d) “Good cause” means a substantial reason, taking into account the prejudice or irreparable harm a party will suffer if a hearing is not held on an objection or not held within the time periods established by this chapter.
(e) “Respondent” means the person or persons against whom an action to enforce a tribal court money judgment can be brought.
(f) “Tribal court” means any court or other tribunal of any federally recognized Indian nation, tribe, pueblo, band, or Alaska Native village, duly established under tribal or federal law, including Courts of Indian Offenses organized pursuant to Part 11 of Title 25 of the Code of Federal Regulations.
(g) “Tribal court money judgment” means any written judgment, decree, or order of a tribal court for a specified amount of money that was issued in a civil action or proceeding that is final, conclusive, and enforceable by the tribal court in which it was issued and is duly authenticated in accordance with the laws and procedures of the tribe or tribal court.

SEC. 13.

 Section 1733 of the Code of Civil Procedure is amended to read:

1733.
 (a) An application for entry of a judgment under this chapter shall be filed in a superior court.
(b) Subject to the power of the court to transfer proceedings under this chapter pursuant to Title 4 (commencing with Section 392) of Part 2, the proper county for the filing of an application is either of the following:
(1) The county in which any respondent resides or owns property.
(2) If no respondent is a resident, any county in this state.
(c) A case in which the tribal court money judgment amounts to twenty-five thousand dollars ($25,000) or less is a limited civil case.

SEC. 14.

 Section 1737 of the Code of Civil Procedure is amended to read:

1737.
 (a) Any objection to the recognition and entry of the tribal court money judgment shall be served and filed within 30 days of service of the notice of filing. If any objection is filed within this time period, the superior court shall set a time period for replies and set the matter for a hearing. The hearing shall be held by the superior court within 45 days from the date the objection is filed unless good cause exists for a later hearing. The only grounds for objecting to the recognition or enforcement of a tribal court money judgment are the grounds set forth in subdivisions (b), (c), and (d).
(b) A tribal court money judgment shall not be recognized and entered if the respondent demonstrates to the superior court that at least one of the following occurred:
(1) The tribal court did not have personal jurisdiction over the respondent.
(2) The tribal court did not have jurisdiction over the subject matter.
(3) The judgment was rendered under a judicial system that does not provide impartial tribunals or procedures compatible with the requirements of due process of law.
(c) (1) The superior court shall decline to recognize and enter a tribal court money judgment if any one of the following grounds applies:
(A) The defendant in the proceeding in the tribal court did not receive notice of the proceeding in sufficient time to enable the defendant to defend.
(B) The judgment was obtained by fraud that deprived the losing party of an adequate opportunity to present its case.
(C) The judgment or the cause of action or claim for relief on which the judgment is based is repugnant to the public policy of the state or of the United States.
(D) The proceeding in the tribal court was contrary to an agreement between the parties under which the dispute in question was to be determined otherwise than by proceedings in that tribal court.
(E) In the case of jurisdiction based on personal service only, the tribal court was a seriously inconvenient forum for the trial of the action.
(F) The judgment was rendered under circumstances that raise substantial doubt about the integrity of the rendering court with respect to the judgment.
(G) The specific proceeding in the tribal court leading to the judgment was not compatible with the requirements of due process of law.
(H) The judgment includes recovery for a claim of defamation, unless the court determines that the defamation law applied by the tribal court provided at least as much protection for freedom of speech and the press as provided by both the United States and California Constitutions.
(2) Notwithstanding an applicable ground for nonrecognition under paragraph (1), the court may nonetheless recognize a tribal court money judgment if the applicant demonstrates good reason to recognize the judgment that outweighs the ground for nonrecognition.
(d) The superior court may, in its discretion, decline to recognize and enter a tribal court money judgment if the judgment conflicts with another final and conclusive judgment.
(e) If objections have been timely filed, the applicant has the burden of establishing that the tribal court money judgment is entitled to recognition. If the applicant has met its burden, a party resisting recognition of the tribal court money judgment has the burden of establishing that a ground for nonrecognition exists pursuant to subdivision (b), (c), or (d).

SEC. 15.

 Section 1741 of the Code of Civil Procedure is amended to read:

1741.
 (a) The Uniform Foreign-Country Money Judgments Recognition Act (Chapter 2 (commencing with Section 1713)) applies to all actions commenced in superior court before January 1, 2015, in which the issue of recognition of a tribal court money judgment is raised.
(b) This chapter applies to all actions to enforce tribal court money judgments as defined herein commenced in superior court on or after January 1, 2015. A judgment entered under this chapter shall not limit the right of a party to seek enforcement of any part of a judgment, order, or decree entered by a tribal court that is not encompassed by the judgment entered under this chapter.

SEC. 16.

 Section 1742 of the Code of Civil Procedure is repealed.

SEC. 17.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.