On 27 June 2024, the UK ratified the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (“2019 Convention”). This is likely to be a significant milestone for cross-border litigation as explained below.
The 2019 Convention facilitates swift and effective international recognition of foreign judgments in civil or commercial matters. By setting down a list of conditions for recognition and enforcement, as well as the grounds for refusal, the 2019 Convention provides legal certainty and predictability to parties involved in cross-border transactions.
The 2019 Convention will come into force in England and Wales only on 1 July 2025. It is unclear why Scotland and Northern Ireland were excluded from the application, but the UK reserved the right to modify its reservation later.
In terms of requirements for recognition and enforcement of foreign judgments, the parties must demonstrate that at least one of the prescribed criteria is met. Broadly speaking, this requires the parties to establish a connection between the defendant and the state of origin (e.g. the defendant was habitually resident there) or between the claim and state of origin (for instance, the place of performance of a contract). On the other hand, the 2019 Convention includes a relatively narrow list of circumstances in which courts of a state where the judgment is to be enforced may refuse to recognise or enforce it. These include cases where the defendant has not been properly notified of the proceedings; where the judgment was obtained by fraud; or refusal on public policy grounds. If a judgment is found to eligible for recognition and enforcement, its merits are unlikely to be reviewed in detail by the relevant court.
Overall, this is a welcome step towards rebuilding and shaping cross-border judicial cooperation with the EU, particularly after the UK was refused consent to independently accede to the Lugano Convention in May 2021. Following the UK’s departure from the EU, there has been no overarching arrangement in place that would provide mutual recognition and enforcement of judgments. Instead, national law applied. Do note that there is an opt-out process, meaning that each of the current contracting states has 12 months to decide whether the 2019 Convention will apply as between it and the UK.
Our Dispute Resolution team and our International team regularly advise clients on complex cross-border contentious matters (including commercial, private client and family disputes) and can certainly assist you with making informed decisions on the jurisdictional issues. If you need advice on enforcing a foreign judgment or if you are thinking of commencing court proceedings against an individual or business based abroad, do contact us for further advice.
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