Sean Adams
Partner
Commercial Disputes
Article
The Hague Judgments Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (the Hague Judgments Convention) will finally enter into force for the United Kingdom on 1 July 2025. In doing so it will change the way in which UK judgments are enforced in other contracting states, resolving many of the issues that have arisen with enforcement of judgments in cross border disputes since Brexit.
The Hague Judgments Convention will provide for the recognition and enforcement of civil and commercial judgments between states that are parties to it. It will allow judgments handed down in one state to be enforced in another, which will be welcome news for international disputes lawyers.
Before Brexit a number of options were open to a party wishing to enforce a UK judgment in another EU state, or to enforce a judgment from another EU state in the UK. Judgments could be enforced relatively easily under the Brussels 1 Recast Regulation 2015 and the Lugano Convention 2007, but these ceased to apply after the end of the Brexit implementation period (on 31 December 2020).
After Brexit enforcement of UK judgments has generally followed domestic rules in overseas jurisdictions, which can be uncertain and costly. Judgments have also been enforced under the Hague Convention on Choice of Court Agreements 2005 (the 2005 Convention), but only if a qualifying exclusive jurisdiction clause is applicable.
Once in force the Hague Judgments Convention will help to streamline the process of recognising and enforcing judgments beyond those matters where there is a choice of court agreement (in respect of which the 2005 Convention will continue to apply).
The overarching objectives of the Hague Judgments Convention are to promote effective access to justice and facilitate cross-border trade and investment by reducing the costs and risks associated with cross-border dealings through judicial cooperation.
The Hague Judgments Convention sets out detailed provisions that establish a framework of the minimum rules that contracting states must apply.
We provide a brief overview of some of the key requirements below.
The Hague Judgments Convention applies to judgments in 'civil or commercial' matters and in the UK it will apply to judgments arising out of proceedings issued on or after 1 July 2025.
While a broad scope of matters will be caught by the 'civil or commercial' umbrella there are a number of exclusions, including:
It applies to both monetary and non-monetary judgments – but not interim injunctions.
It is only concerned with recognition and enforcement of foreign judgments; it is not concerned with the exercise of jurisdiction by the court of origin or with regulating parallel proceedings. The enforcing court need only be concerned with whether the judgment is entitled to recognition and enforcement.
The enforcement procedure cannot be used to review the merits of the judgment or re-open the substance of the dispute.
Article 5 of the Hague Judgments Convention sets out the 'bases for recognition and enforcement', arising as a result of a connection between the court of origin and the person objecting to recognition or enforcement, or between the court of origin and the subject matter of the proceedings. These include the defendant:
Article 7 also sets out a number of situations where recognition or enforcement may be refused, including:
Each contracting state is required to determine its own procedural rules for recognition and enforcement of judgments. In England and Wales an application will need to be made to the court for a judgment to be registered. Once it is registered it will be enforceable as if it were a judgment of that court.
To date the Hague Judgments Convention is in force as between the EU (excluding Denmark), Uruguay and Ukraine – plus the UK from 1 July 2025. It is expected that its territorial scope will expand further – Albania, Andorra and Montenegro have each ratified the Hague Judgments Convention, with it coming into force during 2026. The US, Israel, Costa Rica, Kosovo, North Macedonia and Russia have all indicated an intention to be bound, having signed up to the Hague Judgments Convention – but they are not obliged to ratify the Convention, so until that happens, they can change their position.
The Hague Judgments Convention will provide a minimum standard for the recognition and enforcement of foreign civil or commercial judgments between those states who have ratified it.
It will streamline the enforcement process for many businesses involved in cross-border disputes and it should help to further strengthen the UK's position as a global hub for dispute resolution (which it has retained despite Brexit and which is further bolstered by its appeal as an arbitration centre). Those who want to rely on the UK Courts to uphold their legal rights should have more confidence in enforcing a judgment in another contracting jurisdiction, particularly in the EU (where the biggest difference has been felt over the past few years).
And while contracting states so far have been mostly EU member states the Hague Judgments Convention is not limited to European territories and as more countries ratify the convention, increased global access to justice will follow.
For further discussion in relation to the Hague Judgments Convention and its path toward implementation in the UK, explore our earlier articles:
You may also be interested in our webinar, 'International Rescue – what you can do if global supply chains break down', which covers key issues in cross-border disputes.
If you have any questions about the Hague Judgments Convention or would like to discuss cross-border or international disputes and enforcement matters more broadly, please get in touch with Sean Adams or Tom Price.
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