Japan Compliance

When a Mortgage is Void but the Auction Stands: Unjust Enrichment Claims by the Original Property Owner in Japan

In Japanese real property law, a mortgage provides a powerful tool for creditors to secure obligations. If a debtor defaults, the mortgagee can initiate a compulsory auction of the mortgaged property to recover the debt. A significant feature of Japan's Civil Execution Act (Article 184) is that it

Challenging Mortgage Validity in Japanese Property Auctions: Timing is Everything

When a lender initiates a real property auction in Japan to enforce a mortgage—a process known as "security interest execution" (担保権実行 - tanpoken jikkō)—the property owner (debtor or a third-party guarantor) may believe the mortgage itself is non-existent or has been extinguished (e.g., through repayment)

Expanding Claims in Japanese Security Auctions: Supreme Court Allows Correction for Errors in Distribution Objections

When a creditor enforces a security interest, such as a revolving mortgage (ne-teitōken), through a real property auction in Japan, they must specify their claim in the initial application. A critical question arises if the creditor initially states only a portion of their total secured debt—for example, claiming only

Under What Circumstances Can a Contract Be Legally Rescinded or Terminated in Japan, and What Must Be Proven?

The ability to rescind or terminate a contract (契約の解除 - keiyaku no kaijo) is a critical aspect of contract law, providing a pathway for parties to extricate themselves from agreements under specific circumstances. In Japan, the Civil Code, significantly amended effective April 1, 2020, lays down the primary grounds and

Collecting Assigned Claims in Japan: How Can an Assignee Overcome Debtor Defenses?

The assignment of claims (債権譲渡 - saiken jōto) is a vital mechanism in modern commerce, facilitating financing, securitization, and debt recovery. However, an assignee (譲受人 - jōjunin or yuzuriukenin) in Japan seeking to collect an assigned claim from the debtor (債務者 - saimusha) must be prepared to navigate a complex

Recovering Movable Property in Japan: What are the Essential Claims and Defenses in Delivery Disputes?

Disputes over the possession of movable property (動産 - dōsan) are common in commercial dealings. When a party believes they are the rightful owner of such property currently held by another, Japanese civil litigation offers a path to recovery. This article outlines the essential facts (要件事実 - yokenjijitsu) an owner

Terminating a Commercial Lease and Recovering Property in Japan: What Legal Grounds and Proof are Required?

Terminating a commercial lease and recovering leased property in Japan involves navigating a complex interplay between general provisions of the Civil Code and special protective laws, particularly the Act on Land and Building Leases (借地借家法 - Shakuchi Shakka Hō). This is especially true for land leased for the purpose of

How Can We Correct or Enforce Real Estate Registration in Japanese Property Disputes?

In Japan, real estate registration (不動産登記 - fudōsan tōki) serves as a cornerstone of property rights, providing public notice of ownership and other interests in land and buildings. However, discrepancies between the registered information and the actual substantive rights can arise, leading to disputes. When a party refuses to cooperate

Evicting an Occupant from Real Estate in Japan: What Does a Property Owner Need to Establish?

When a property owner in Japan seeks to recover possession of their real estate from an occupant, legal proceedings are often necessary. Such actions, typically based on ownership rights, require the owner (plaintiff) to meticulously prove certain "essential facts" (要件事実 - yokenjijitsu) to succeed. This article outlines the

Enforcing Guarantee Agreements in Japan: What are the Creditor's Burdens of Proof?

Guarantee agreements (保証契約 - hoshō keiyaku) are a cornerstone of secured lending and commercial transactions in Japan, providing creditors with an additional layer of security against principal debtor default. However, enforcing these agreements in Japanese civil litigation requires a creditor to meticulously establish a set of "essential facts"

How Can Lenders Secure Repayment in Japanese Loan Agreement Disputes?

Successfully recovering loaned funds in Japan through civil litigation requires a lender to meticulously establish certain "essential facts" (要件事実 - yokenjijitsu). These are the core factual elements that underpin a legal claim. This article explores the fundamental requirements for lenders seeking repayment in Japanese loan agreement disputes, focusing

What Key Facts Must We Prove to Enforce a Sales Contract in Japanese Civil Litigation?

Successfully enforcing a sales contract through Japanese civil litigation hinges on meticulously establishing certain "essential facts" (yokenjijitsu). These are the ultimate facts that a party must allege and prove to support its legal claim or defense. This article explores the fundamental essential facts required for common claims arising

Enforcing a Right of Retention Over Registered Automobiles in Japan: Supreme Court Clarifies Evidentiary Requirements for Auction

In Japanese civil law, a "right of retention" (留置権 - ryūchiken) is a possessory security right that allows a person who holds an object belonging to another to retain possession of that object until a claim connected with the object is satisfied (Civil Code, Article 295). For instance,

Substantive Flaws in Debt Claims: Do They Invalidate a Completed Compulsory Auction in Japan?

In Japan, initiating a compulsory execution, such as a real estate auction, requires a valid "title of obligation" (債務名義 - saimu meigi). This is typically a final court judgment, but can also be a notarial deed that includes an "execution undertaking clause" (執行受諾文言 - shikkō judaku

Piercing the Corporate Veil in Defense: Applying the Disregard Doctrine in Japanese Third-Party Objection Suits

The principle of separate corporate personality is a cornerstone of company law, shielding shareholders and affiliated entities from the liabilities of a corporation. However, this shield is not absolute. Under the "doctrine of disregard of corporate personality" (法人格否認の法理 - hōjinkaku hinin no hōri), often referred to as "

Clash of Creditors: Assignment for Security over Inventory vs. Seller's Statutory Lien in Japan

In the complex world of commercial finance and debt recovery, disputes often arise when multiple creditors assert conflicting security interests or claims over the same assets of a debtor. A significant 1987 decision by the Supreme Court of Japan addressed such a conflict, specifically the priority contest between a creditor

Tenant's Right to Demand Building Purchase Post-Eviction Judgment: A Japanese Supreme Court Clarification

In Japanese landlord-tenant law, particularly concerning leased land, tenants who have constructed buildings on that land are afforded certain protections upon the termination of their lease. One significant protection is the "building purchase demand right" (建物買取請求権 - tatemono kaitori seikyūken). This statutory right allows a tenant, under specific

Drawing Procedural Lines: Scope of Challenge in an "Action of Objection to the Grant of a Writ of Execution" in Japan

In the Japanese civil execution system, obtaining a "writ of execution" (執行文 - shikkōbun) from a court clerk is a critical step before a creditor can forcibly enforce a judgment or other "title of obligation" (債務名義 - saimu meigi). While usually an administrative process, if a

Defining the Battlefield: Scope of Defenses in an "Action for the Grant of a Writ of Execution" in Japan

In the Japanese system of civil execution, a "writ of execution" (執行文 - shikkōbun) is a crucial document issued by a court clerk. It certifies that a judgment or other "title of obligation" (債務名義 - saimu meigi) is currently enforceable, serving as a necessary precursor to

Enforcing Non-Dischargeable Debts After Bankruptcy in Japan: The Proper Path to a Writ of Execution

Bankruptcy discharge offers debtors a fresh start by releasing them from most of their pre-bankruptcy debts. However, Japanese bankruptcy law, like that of many other jurisdictions, specifies certain categories of debts as "non-dischargeable" (非免責債権 - hi-menseki saiken). These debts survive the bankruptcy process, and creditors can still seek

Failing to Use Execution Remedies: Does it Bar State Compensation Claims in Japan?

When errors occur in the complex machinery of civil execution (compulsory enforcement) proceedings, leading to financial loss for a party, the question arises whether the state can be held liable for damages. In Japan, the State Compensation Act provides a basis for such claims if public officials cause damage through

Default Clauses in Japanese Settlements: Debtor's Path to Challenge Enforcement

Settlement agreements reached in court, known as "judicial settlements" (裁判上の和解 - saibanjō no wakai), are common in Japan and, like final judgments, serve as enforceable "titles of obligation" (債務名義 - saimu meigi). These settlements often include "default clauses" (過怠約款 - katai yakkan), which stipulate

Piercing the Corporate Veil in Japan: A Doctrine of Substantive Liability, Not Direct Judgment Enforcement

The foundational principle of corporate law is that a company is a legal entity separate and distinct from its shareholders and directors, possessing its own rights and liabilities. However, courts in various jurisdictions, including Japan, have developed the doctrine of "disregard of corporate personality" (法人格否認 - hōjinkaku hinin)

When Justice is Denied: Enforceability of Fraudulently Obtained Judgments in Japan

The integrity of the judicial process hinges on fundamental principles of fairness, including the right of all parties to be heard and to defend their interests. In Japan, a "title of obligation" (債務名義 - saimu meigi), such as a final judgment or a payment order with a declaration

Enforcing Judgments Against "Associations Without Legal Personality" in Japan: Navigating Real Estate Execution

In Japan, an "association without legal personality" (権利能力のない社団 - kenri nōryoku no nai shadan) is a group that operates like a corporate body but lacks formal legal personality. While these associations can sue and be sued, they face a peculiar challenge regarding property ownership: they cannot be the