In a previous article, Accession to International Convention will enable UK Judgments to be recognised and enforced Overseas — Laytons ETL, we discussed the UK Government’s intention to accede to the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (“Hague 2019). Hague 2019 created an international legal framework for the recognition and enforceability of judgments, so the UK’s intention to accede to it marked a significant post-Brexit development in the UK’s international trading relationships.
On 27 June 2024, the UK gave effect to its intention by ratifying Hague 2019. It will come into force for the UK on 01 July 2025. The UK’s ratification was accompanied by a declaration that, initially at least, Hague 2019’s application will be limited to England and Wales only, i.e., it will not apply in Scotland and Northern Ireland.
Ukraine, Uruguay, and all EU member states apart from Denmark, are already contracting states. Hague 2019 has also been signed, but not yet ratified, by Israel, Costa Rica, Montenegro, North Macedonia, the Russian Federation, and the USA.
Hague 2019 is an instrument that facilitates the effective international circulation of judgments in civil or commercial matters between contracting parties in different contracting states. It provides a uniform set of core rules and greater legal certainty to those contracting parties.
When does Hague 2019 apply?
Hague 2019 applies to civil or commercial matters. When a party seeks to enforce a judgment obtained in one contracting state in a second contracting state, the courts in the second contracting state are responsible for ascertaining whether the judgment is eligible for recognition and enforcement. Hague 2019 provides a list of criteria to be used to assess eligibility, with a focus on whether the first contracting state was an appropriate place to commence the proceedings in which the judgment was promulgated.
Hague 2019 does not apply to matters such as revenue, customs or administrative matters, defamation, intellectual property, privacy, the carriage of passengers and goods, marine pollution, insolvency, certain anti-trust (competition law) matters, or to arbitration proceedings. In addition, where contracting states have a “strong interest” in not applying Hague 2019 to other specific matters, they may declare that they will not apply it to such matters.
Grounds for Refusing Enforcement
Courts may refuse to recognise or enforce a judgment under Hague 2019 on several grounds, including where the defendant has not been properly notified of the proceedings; where the judgment was obtained by fraud; on public policy grounds; and where the proceedings breached a pre-existing jurisdiction agreement between the parties.
Right to Opt-Out
States are entitled to opt out of applying Hague 2019 between themselves and other contracting states. They can do this when they ratify, or within 12 months of a new state joining.
Laytons ETL’s Comment
Ratification of Hague 2019 will enhance the UK’s attractiveness as a place to do business, and protect its reputation as an international dispute resolution centre.
To discuss any of the points raised in this article, please do not hesitate to contact us.
