What does the Hague Convention mean for foreign judgments and the UK?

In July, the 2019 Hague Convention on the Recognition of Enforcement of Foreign Judgments (‘the Convention’), which is supplemental to the 2005 Hague Convention on the Choice of Court Agreements (‘the 2005 Convention’), officially came into effect across the UK. This article outlines the key features of the Convention and the anticipated legal and commercial implications of its entry into force.

Aims and scope

The Convention seeks to simplify and streamline the cross-border process for civil and commercial matters between participating states, as well as providing more certainty on enforcing judgments. The Convention now applies between the UK and 28 other countries, including all EU member states (with the exception of Denmark), Ukraine, and Uruguay.

The Convention goes significantly further than the 2005 Convention, which only applies to judgments relating to exclusive jurisdiction clauses, allowing enforcement of a much wider range of judgments.

When does the Convention apply?

The Convention covers judgments in civil or commercial matters. It can include things like monetary judgments, cost awards, and some non-monetary remedies.

The judgment must arise from proceedings starting on or after 1 July 2025 and meet certain requirements, such as:

• The defendant lives or has a main place of business in the country of the court where the original judgment was issued.
• The defendant agrees to the jurisdiction or argues the case without objecting.
• The claim relates to a contract performed or a tort committed in the court’s country.
• The claim involves the activities of a branch or agency located in that country.

Exclusions

The Convention does exclude some types of judgments from its scope. These include proceedings relating to intellectual property, insolvency, defamation, family, and privacy. The Convention also does not apply to arbitration and any related proceedings.

When can recognition or enforcement be refused?

The Convention sets out limited possible grounds where a court may refuse to recognise or enforce a foreign judgment. These include:

• Improper notice: The defendant was not properly notified and could not defend the case.
• Fraud: The judgment was obtained fraudulently.
• Public policy: Enforcement would seriously conflict with the requested country’s public policy or procedural fairness.
• Jurisdiction issues: The case was decided in the wrong court, against a valid jurisdiction agreement.
• Conflicting judgments: The judgment conflicts with an existing one in the requested country or with an earlier foreign judgment already eligible for recognition.

What is the Convention’s impact?

In practical terms, the Convention simplifies and unifies cross-border enforcement by reducing procedural hurdles, making it much easier for parties to enforce judgments internationally and creating greater legal certainty. It is especially important for the UK post-Brexit, as it re-establishes a smoother legal relationship between the UK and EU when it comes to enforcing civil and commercial judgments.

The Convention’s international influence is expected to grow. Albania, Andorra, and Montenegro are all set to join next year, and the USA has signed but not yet ratified the Convention.

For anyone dealing with cross-border litigation, the Convention is a welcome step forward in making international enforcement simpler, more consistent, and less unpredictable.

If you have questions or concerns about the Convention, please contact James Tumbridge and Anne-Marie Harding.