Securing a favorable outcome in a cross-border business dispute can be a major achievement. However, when the losing side refuses to comply, the challenge becomes turning that success into actual recovery—especially when the opposing party holds valuable property in the USA. Here’s a breakdown of how to begin and complete the recognition and recovery process in U.S. courts.
File a Petition
Start by filing a formal request or petition in a federal court. It is a legal procedure adopted whereby an overseas decision would get recognised within the USA. Once recognised, this decision shall automatically acquire the status of any local civil judgment, enabling the successful party to start redressal proceedings through standard legal tools customarily available for recovery.
The petition should have three things:
- A duly attested copy of the decision;
- The original contract or clause on which the decision was based;
- English translation of the documents, if in another language.
This paper is normally filed right at the beginning of a very paper-oriented and streamlined so-called “court process.” That would not normally involve a major oral argument or proof hearing at length before a resolution was reached.
Establishing Jurisdiction and Proper Service
The next step is to ensure that the court has the legal authority to hear the case. This means identifying a proper geographic location—often where the opposing side has property or business ties—and showing that the parties have sufficient connections to that location.
After filing the petition, the claimant must properly notify the opposing party. This step, called service, must comply with the federal rules that govern how legal papers are delivered. Courts will typically require proof that the opposing side was given a fair chance to respond.
U.S. courts will not move forward unless they are satisfied that both the geographic and legal conditions have been met.
Court’s Role
The national juridical body will not look at the facts of the case; instead, its primary role is simply to decide whether the overseas ruling meets the legal tests for acceptance as established by relevant multinational frameworks. Usually, juridical bodies have a strong presumption in favor of upholding validly decreed judgments from foreign forums. If the papers are in order and proper notice has been given, except in some particularized exceptions, U.S. courts are generally obliged to acknowledge the decision.
Grounds for Refusing
Despite the pro-recovery stance of most courts, there are limited reasons a judge may decline to recognize a foreign decision. These exceptions fall into a few categories:
- Jurisdictional Defects: If the original panel lacked proper authority over the dispute or the parties involved;
- Procedural Unfairness: If the process failed to meet minimum standards of fairness or transparency;
- Public Policy Concerns: If the decision contradicts the fundamental legal principles of the US.
Importantly, courts do not typically question whether the original outcome was “correct.” Instead, they focus on how the process was handled and whether it met internationally accepted norms.
Enforcement as a U.S. Judgment
Once the overseas ruling has been formally recognised, the court issues a domestic judgment awarding a sum of money. At this stage, the creditor is in the same position as the party in whose favour the judgment was rendered in a civil case.
This judgment can then be used to recover property or funds. Each state has its own set of rules, but in general, creditors may pursue a wide range of property—such as bank accounts, securities, and debts owed by others to the losing side.
The judgment is usually paused for 30 days, during which time the opposing side can file an appeal. If they do, they may request to pause the collection process further by posting a financial guarantee or with special permission from the court.
Additionally, the winning party can initiate information requests to uncover assets. These requests are not limited to the losing party and may target third parties such as banks or business partners.
Important Considerations
Several important factors need to be borne in mind. Chief among these is timing. Generally, in the U.S., a three-year statute of limitations to file a petition exists for acceptance of a multinational ruling. Yet some courts have found ways around this. The judgment in favor will be executed on the foreign-country judgment and converted to the local judgment with a longer statute of limitations; the local judgment can then be brought into the U.S. under the framework for foreign-court decisions—an effective way of expanding the period for action.
Another key factor to this is procurement of discovery tools. As soon as such a judgment is entered in the United States, both federal and state laws project highly vigorous and energetic means whereby the judgment creditor may avail himself of opportunities for revealing what property the judgment debtor has. These include requests for documents, written questions, and even depositions—formal interviews carried out under oath.
Such tools may not only be turned against the judgment debtor but also against third parties, for example, banks or business associates who might hold vital information regarding the location of property.
One also needs to plan out the careful jurisdictional strategy. Half of the key points to a fast or successful process lies in choosing the right court. If the losing party has property in more than one location, the claimant may think of leaping into actions in more than one district. Otherwise, filing in the jurisdiction with procedures most favorable or more experiential with cross-border matters will enhance the chance of an efficient recovery.
Finally, there are always potential appeals. That challenge means further lagging of the process of acknowledgment of the foreign result by court. Subject to the complexity of the issues and the caseload of the appellate court, it is possible that appeal can heighten the case for a year or more. Although relatively rare, appeals in these matters are another potential pitfall about which the parties should be warned.
How do you enforce an arbitration award?
Start by seeking acknowledgment in a court located where the opposing party has property. If granted, the decision is treated as a domestic judgment, which can then be used to pursue collection.
Where can arbitral awards be enforced?
They may be enforced in any country that has accepted relevant international agreements, provided the party holds property there and local courts agree to recognize the decision.
Which country is best for international arbitration?
Choice depends on factors like legal infrastructure, treaty networks, neutrality, and track record in cross-border business disputes. Countries often selected include the U.S., U.K., Singapore, and Switzerland—each offering stable courts, predictable enforcement, and experience in handling international commercial matters.
What is Section 44 of the arbitration Act?
This section gives English courts powers to provide support to arbitration proceedings. This includes, inter alia, taking measures to preserve evidence, granting interim measures and compelling witnesses, including third parties, to give evidence. Such measures are available where the arbitral tribunal is unable to act effectively or expeditiously. Before the 2025 reform, the ability to apply these measures to third parties was limited, but following the changes to the law, such action is expressly permitted.