Any business that operates internationally must understand the relevant legal jurisdictions in which it conducts business, and the nuances of trading across borders. Enforcing a foreign judgment in the UK poses challenges that businesses may need to navigate and it is therefore important to understand the relevant considerations when doing so.If you have a foreign judgment that you wish to enforce in the UK, there are several things to consider that can help to ensure the best possible outcome and the highest chance of recoverability.

Commercial disputes across borders might concern (but are not limited to) trade matters or contracts, intellectual property rights, or unpaid debts. Having a legal judgment on your side is often the best way to uphold your business’ legal rights or recover a debt, but only if the judgment can be applied in the right jurisdiction. For example, a business based outside the UK may secure a foreign judgment against a debtor with assets in the UK, but this can only be enforced within the UK in order to recover the sums owed.

This is not as complicated as it sounds, but there are several important considerations for businesses to make. Here, the expert commercial litigation team at JMW explain the things you need to know to have a cross-border judgment enforced in the UK.

Enforcement treaties

Enforcement treaties are international agreements that recognise judgments and judicial decisions between countries. They simplify and standardise the process by which a judgment issued in one country can be recognised and enforced in another. If you wish to secure a judgment that can be enforced in the UK, first check whether there is a treaty in place between the UK and the country where your judgment will be issued. If so, the process could be a lot more efficient.

The UK has several treaties in place, and establishes common grounds on which the court can refuse to enforce a foreign judgment. Common grounds include a lack of jurisdiction, violation of public policy, or a failure to meet due process standards in the original proceedings. These circumstances can be more complicated, and you should still speak to a commercial litigation solicitor as your first step towards having a judgment enforced effectively.

Fairness of the judgment

A judgment must be final and conclusive to be enforced in the UK. It must have been granted under proceedings that adhered to the UK’s standards of a fair trial and due process. Judgments that may still be appealed or that are pending a final judgment cannot be enforced. Similarly, if a judgment is deemed unfair, violates principles of justice or human rights, or is contrary to English law, international law or public policy, then it cannot be enforced in the UK.

Costs

Consider the financial and time implications of enforcing a judgment across borders. Legal fees, court costs, and the time that proceedings take can be significant. This will affect whether it is financially viable or worthwhile to pursue enforcement of an overseas judgment in the UK. This will also depend on the judgment itself, and how easy it will be to enforce.  We would recommend that you speak to a solicitor for guidance before starting this process, and use their advice to make an informed decision.

Procedural requirements

Several procedural requirements apply when enforcing a foreign judgment in the UK. The process generally includes the following steps:

• Determine applicability: The first step is to determine whether the judgment can be recognised under English law. Did the foreign court have jurisdiction? If so, you must also consider whether the judgment is final and conclusive, and whether it is for a fixed sum of money. Non-monetary judgments cannot be enforced in the UK and you will usually need to make a new claim in an English court.
• Apply for registration: Apply to register the judgment with the High Court. You must provide a verified copy of the judgment, a certified translation if it is not in English, and evidence that the judgment is enforceable and final in the originating country.
• Serve documents: Once the judgment is registered, the judgment creditor must serve the registration order on the judgment debtor in a way that complies with the UK Civil Procedure Rules (CPR). You must provide information about the other party’s right to challenge the registration.
• Challenge period: The judgment debtor has a specific period (usually one or two months from the date of service) to challenge the registration. Grounds for a challenge include:
• the original court lacked jurisdiction
• the judgment was obtained fraudulently
• the judgment is contrary to UK public policy
• the decision conflicts with a prior judgment in a different jurisdiction
• Enforcement: If there is no challenge, or the challenge is unsuccessful, you can enforce the foreign judgment like any domestic UK judgment.

A solicitor can help you to represent your case in these circumstances and uphold the legality of your judgment to make sure it is enforced appropriately.

Working with a solicitor that is an expert in this area is the key to obtaining the best results. The commercial litigation team at JMW has a wealth of expertise in representing clients to resolve commercial disputes and enforce overseas judgments. We can offer advice on what to expect from the process and assist you with the legal processes you need to follow to have the judgment enforced appropriately. 

We will explain the likely outcomes of the process from the start, and advise you on the time and costs involved, to help you make the right decision for your business. To learn more about how JMW’s commercial litigation team can help you, call us on 0345 872 6666 or use our online enquiry form to request a call back.