## Facts

- Nippon Emo-Trans Co., Ltd. (NET), a Japanese freight forwarder, and Emo-Trans, Inc. (ETI), a New York freight forwarder, had a contractual relationship (1982–1986) to handle each other’s shipments at the receiving end.
- A dispute arose over allocation of profits on freight charges collected from consignees; NET claimed ETI underpaid by about $354,000.
- NET sued ETI in the Tokyo District Court in 1986; ETI contested personal jurisdiction.
- The Tokyo court found personal jurisdiction based on, among other things, that ETI’s payment obligation was to be performed in Japan and ETI had a Japanese affiliate.
- After trial, the Tokyo court entered a money judgment for NET for about $354,000 plus interest and costs; ETI appealed in Japan.
- ETI separately filed a federal action in the Eastern District of New York in 1988 concerning the dispute; that action was stayed pending the Japanese case.
- NET then sued in the Eastern District of New York under New York’s foreign money-judgments recognition statute and obtained an ex parte attachment of ETI’s New York property to secure enforcement.
- NET moved to confirm the attachment; ETI cross-moved to vacate or modify the attachment and to stay the recognition action while the Japanese appeal was pending.

## Issues

1. Whether the Tokyo District Court had personal jurisdiction over ETI sufficient for New York to recognize the Japanese judgment.
2. Whether NET showed a probability of success on recognition under New York’s foreign judgment recognition statute, supporting attachment.
3. Whether the recognition action should be stayed because the Japanese judgment was on appeal.
4. Whether alleged due process, impartiality, or public policy concerns justified denying provisional relief or staying the case.

## Decision

- The court held the Tokyo District Court had personal jurisdiction over ETI on grounds acceptable under New York recognition standards.
- The court granted NET’s motion to confirm the attachment, finding NET probably entitled to recognition and thus entitled to prejudgment security.
- The court denied ETI’s motion to vacate or modify the attachment.
- The court denied a discretionary stay pending the Japanese appeal.

## Legal Principles

- A foreign-country money judgment that is final, conclusive, and enforceable where rendered is generally recognizable and enforceable in New York, subject to specified non-recognition grounds (including lack of personal jurisdiction and fundamental unfairness).
- For attachment in New York, the plaintiff must show a money claim and a probability of success; a recognition claim based on an enforceable foreign judgment can satisfy these requirements.
- A foreign court’s personal jurisdiction may be acceptable for recognition where the defendant’s obligation was to be performed in the foreign forum and the defendant maintained meaningful commercial connections with that forum.
- A pending foreign appeal does not require a stay of recognition proceedings where the judgment remains enforceable abroad and a stay would unfairly deprive the creditor of security.
- Generalized allegations that a foreign tribunal is biased or that procedures are unfair are insufficient without strong supporting proof, particularly for judgments from established commercial legal systems.

## Conclusion

The court confirmed a New York attachment to secure assets for satisfaction of a Japanese commercial money judgment, finding the Japanese court’s jurisdiction consistent with recognition standards and declining to stay the recognition action despite an ongoing Japanese appeal because the judgment was enforceable and security was warranted.


Nippon Emo-Trans Co., Ltd. v. Emo-Trans, Inc., 744 F. Supp. 1215 (E.D.N.Y. 1990)