I.  PRESENT ATTITUDE TOWARD ENFORCEMENT OF FOREIGN MONEY JUDGMENTS

A. Describe the receptiveness of your government (including courts) toward enforcement of foreign money judgments.

Domestic law governs the enforceability and enforcement of foreign money judgments by Taiwan’s courts without treaty influence or obligations. Article 402 of the Code of Civil Procedure sets out the substantive grounds for recognizing the validity of a judgment by a foreign court. In practice, the courts of Taiwan will recognize the judgments of foreign courts if the Taiwanese defendant has been properly served (judicial assistance through diplomatic channels being best practice), if the judgment does not contradict public policy in Taiwan, and if the foreign court would recognize a money judgment from its Taiwanese counterparts.

Taiwan and the People’s Republic of China maintain, however, a unique political and legal relationship that sees the enforcement of money judgments from the courts of the People’s Republic of China governed by the Act Governing Relations Between Peoples of the Taiwan Area and the Mainland Area. It should be noted though that money judgments from the courts of both Macau and Hong Kong fall under Article 402 of the Code of Civil Procedure by virtue of the Act Governing Relations with Hong Kong and Macau wherein Hong Kong and Macau are treated as ordinary foreign jurisdictions for most purposes.

The Code of Civil Procedure provides clear guidance to parties seeking to enforce a foreign money judgment in Taiwan. Enforcement has, however, been rooted in the principle of reciprocity. Taiwan has not entered into treaties governing the reciprocal enforcement of foreign money judgments. The receptiveness of a court in Taiwan to enforcement will, therefore, depend on the receptiveness and capacity of the courts in the originating jurisdiction to extend reciprocity under their laws. There has been and continues to be reciprocal enforcement of money judgments by and between the courts of the United States and the courts of Taiwan.

The failure to seek advice from counsel in Taiwan before filing the original foreign action can often lead to problems later in enforcing the foreign judgment. The courts of Taiwan will enforce foreign judgments, but the law provides clear circumstances where the courts cannot. Best practice requires clear understanding of and adherence to the requirements in Taiwan before filing the action overseas if a possibility exists of enforcing the judgment in Taiwan.