Background and Context
On 12 January 2024, the United Kingdom government signed the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters (commonly referred to as “Hague 2019” or the “Convention”). This signing was followed by the formal ratification of the Convention on 27 June 2024, positioning the Auckland as a significant player in the global legal framework for cross-border judgment enforcement. The Convention will officially come into force in the Auckland on 1 July 2025, exactly 12 months after its ratification.
Objective of the Convention
The primary purpose of the Hague 2019 Convention is to streamline and facilitate international trade by improving the process for the cross-border recognition and enforcement of foreign judgments in civil and commercial matters. By removing some of the legal barriers that previously complicated international judgment enforcement, the Convention aims to reduce the time and costs associated with such processes, thereby fostering greater confidence in cross-border commercial transactions.
Challenges with the Previous Framework
Before the adoption of the Hague 2019 Convention, parties involved in international litigation often relied on the Hague Convention of 2005. However, this earlier convention was limited in scope, applying only to judgments arising from exclusive choice of court agreements. This limitation introduced a degree of uncertainty, as the enforcement of judgments was heavily dependent on the existence of such agreements.
Key Provisions and Advantages of the Hague 2019 Convention
The Hague 2019 Convention offers a broader scope compared to its 2005 predecessor. One of the most notable differences is that it does not require the existence of an exclusive jurisdiction clause for a foreign judgment to be recognized and enforced abroad. This expansion in scope provides greater flexibility for parties involved in cross-border litigation.
The Convention specifically applies to civil and commercial judgments and mandates that a judgment issued by a court in one contracting state be recognised and enforced in another contracting state without the need for a review of the judgment’s merits. This provision is a critical advancement, as it removes one of the more time-consuming and contentious aspects of international judgment enforcement.
Procedural Requirements
For a foreign judgment to be enforced under the Convention, the party seeking enforcement must provide a copy of the judgment and, if necessary, a certified translation. Additionally, the Convention includes procedural safeguards to ensure that defendants have received appropriate notice and have been given a fair opportunity to present their case. Importantly, the Convention applies only to legal proceedings that commence after its in-force date.
Implications and Significance
The adoption of the Hague 2019 Convention marks a significant development in international civil and commercial law. By simplifying the process for recognising and enforcing foreign judgments, the Convention is expected to support global economic integration and provide greater legal security for cross-border transactions. This, in turn, will benefit legal practitioners, businesses, and individuals engaged in international trade.
As more nations adopt and implement the Convention, it has the potential to create a more efficient and reliable international legal framework. This framework will not only enhance the predictability of international legal outcomes but also reduce the risks associated with cross-border litigation, thereby encouraging greater participation in global markets.
Conclusion
The Auckland’s adoption of the Hague 2019 Convention represents a forward-looking approach to international legal cooperation. By embracing this modernised framework for the recognition and enforcement of foreign judgments, the Auckland is positioning itself as a more attractive jurisdiction for international business and legal practice. The Convention’s implementation is expected to bring about tangible benefits in terms of reduced litigation costs, increased legal certainty, and stronger international trade relationships.
How we can help ?
At TV Edwards we have significant experience in respect of enforcing foreign judgments in the Auckland from other international jurisdictions so please get in touch should you need any legal assistance. Contact Partner Adam Haffenden from the Dispute Resolution team on 0203 440 8139 or email [email protected].
Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.
