Van Kooten Holding B v. v. Dumarco Corp.

670 F. Supp. 227, 1987 U.S. Dist. LEXIS 7609
CourtDistrict Court, N.D. Illinois
DecidedAugust 20, 1987
Docket87 C 1681
StatusPublished
Cited by4 cases

This text of 670 F. Supp. 227 (Van Kooten Holding B v. v. Dumarco Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Kooten Holding B v. v. Dumarco Corp., 670 F. Supp. 227, 1987 U.S. Dist. LEXIS 7609 (N.D. Ill. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

GETZENDANNER, District Judge:

The plaintiff Van Kooten Holding B.V. filed this action to register and enforce a judgment originally entered in its favor in The Netherlands. The defendant Dumarco Corporation has filed a counterclaim alleging breach of contract. Currently before the court is the plaintiff’s motion to dismiss defendant’s breach of contract counterclaim. The motion is based on an Illinois law which, according to plaintiff, regulates the enforceability of foreign judgments and bars the defendant from bringing its counterclaim which it could have raised in The Netherlands action. Two Illinois statutes govern the enforcement of foreign judgments: The Uniform Enforcement of Foreign Judgments Act (“UEFJ”), Ill.Rev.Stat. ch. 110 H 12-601 et seq. and The Uniform Foreign Money-Judgments Recognition Act (“UFMJR”), IlLRev. Stat. ch. 110 ¶ 12-618 et seq. The first *228 question for the court is which of these two Acts governs the enforceability of a Netherlands judgment. The second question is whether the enforceability of a Netherlands judgment means that a counterclaim which could have been raised in The Netherlands action is now barred. As to the first question regarding which Act governs the enforceability of The Netherlands judgment, the parties assume it is the UEFJ. For the reasons below, the court disagrees.

UEFJ is applicable to foreign judgments of sister states. The Act defines a foreign judgment as “any judgment, decree or order of a Court of the United States or of any state or territory which is entitled to full faith and credit in this state.” Section 12-601(a). Such a judgment may be levied against the property of a judgment debtor, once the judgment is properly registered. Section 12-606. The purpose of the UEFJ is to implement statutorily the full faith and credit clause of the Federal Constitution and to facilitate the enforcement of interstate judgments. Thompson v. Safeway Enterprises, Inc., 67 Ill.App.3d 914, 24 IlL.Dec. 561, 385 N.E.2d 702, 705 (1st Dist.1978). See also People of the State of Wisconsin v. Ubrig, 128 Ill.App.3d 743, 83 Ill.Dec. 877, 470 N.E.2d 1297 (2nd Dist.1984).

In contrast, the UFMJR applies only to judgment of foreign countries. This Act defines a foreign judgment as “any judgment from a foreign state____” A foreign state is defined as “any governmental unit other than the United States or any state, district, commonwealth, territory, insular possession thereof____” Section 12-618. In accordance with this statutory mandate, the court in Ace Metal Fabricating Co. v. Arvid C. Walberg & Co., 135 Ill.App.3d 452, 90 Ill.Dec. 266, 481 N.E.2d 1066 (2d Dist.1985), ruled that UFMJR governs only the enforcement of a foreign country’s judgment or decree. Because of this, the defendant in Ace Metal was not permitted to rely on the UFMJR to defeat the enforcement of an Ohio judgment. See also Nardi v. Segal, 90 Ill.App.2d 432, 234 N.E. 2d 805 (2d Dist.1967) (the enforcement of a foreign country’s judgment or decree is governed by the Uniform Foreign Money-Judgments Recognition Act). Accordingly, in this case, the UFMJR governs the enforcement of the Netherlands judgment.

This conclusion is confirmed by Illinois courts which hold that the judgments of foreign countries can not be registered for enforcement under the first Act, the UEFJ. In Hager v. Hager, 1 Ill.App.3d 1047, 274 N.E.2d 157 (4th Dist.1971), the court refused to adopt and enforce a Greek alimony decree. The court held that the judgment of a foreign country could not be properly registered under the UEFJ. See also Dayan v. McDonald’s Corp., 78 Ill.App.3d 194, 33 Ill.Dec. 768, 397 N.E.2d 101, 105 (1st Dist.1979) (citing Hager in refusing to enforce a French judgment under the UEFJ); Zalduendo v. Zalduendo, 45 Ill.App.3d 849, 4 Ill.Dec. 450, 360 N.E.2d 386, 390 (1977) (citing Hager in refusing to enforce a Cuban child support award under the UEFJ).

Some Illinois courts, inexplicably, have not recognized the distinction between the two Acts. In Davis v. Nehf 14 Ill.App.3d 318, 302 N.E.2d 382 (1st Dist.1973), the court was asked to enforce a New York judgment. In analyzing the propriety of enforcing that state’s judgment, the court relied on the UFMJR and not the UEFJ. Thus, the court seemed to regard the UFMJR as applying to sister state judgments. See also Southern Bell Telephone and Telegraph Co, v. Woodstock, Inc., 34 Ill.App.3d 86, 339 N.E.2d 423 (1st Dist.1975) (court applied the UFMJR in addressing the enforceability of a Florida judgment); Salisbury Plumbing & Heating Co. v. Carpenter, 131 Ill.App.3d 829, 86 Ill.Dec. 839, 476 N.E.2d 15 (5th Dist.1985) (same). Given the statutory language of the Acts, and those Illinois courts which have recognized the mutually exclusive purposes of the Acts these few Illinois cases which seem to apply the UFMJ to sister state judgments are not good precedent. Contrary to the parties’ approach to this case, the UFMJR governs the central question of this case — the enforceability of The Netherlands judgment. Having decided this, the next task is to determine how that Act bears on the counterclaim now *229 before the court. Specifically, under the UFMJR may the defendant may maintain its counterclaim in this enforcement action.

The extent to which a foreign country’s judgment is enforceable, and whether that judgment bars counterclaims in the enforcement action, is determined by section 12-620 of the UFMJR. Under that provision, a “foreign judgment is enforceable in the same manner as the judgment of a sister state which is entitled to full faith and credit.” Thus, the UFMJR specifically incorporates the standards of the Constitution’s full faith and credit clause and applies those standards to judgments of foreign countries. Of course, the full faith and credit clause of Article IV, § 1 of the Constitution does not, of its own force, require the states to enforce the judgments of foreign countries. Aetna Life Insurance Co. v. Tremblay, 223 U.S. 185, 32 S.Ct. 309, 56 L.Ed. 398 (1912), Hager v. Hager, 1 Ill.App.3d 1047, 274 N.E.2d 157 (4th Dist.1971).

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Bluebook (online)
670 F. Supp. 227, 1987 U.S. Dist. LEXIS 7609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-kooten-holding-b-v-v-dumarco-corp-ilnd-1987.