Enforcement of Judgments in England

When an international business†transaction goes bad because goods†or services are not paid for or monies†lent are not repaid, creditors can†often be left with a shortfall when they†discover that the only assets the debtor†owns are outside their local jurisdiction†where such assets, which could†satisfy a judgment, may be difficult†to attack or are at risk of dissipating†quickly without a trace (since there†may be no interim freezing of assets).†This discovery, combined with a†creditor's natural hesitation to initiate†proceedings in unfamiliar jurisdictions,†can lead to problems. Consequently,†before a party engages in business with†a party with foreign assets, it should†investigate the location, value, and†accessibility of the counter-party's assets†in case a dispute arises. Should a†problem occur, a shrewd creditor will†endeavour to preserve those assets, if†possible, pending judgment. On the†other hand, the debtor must determine†whether he or she can ignore the†foreign proceedings, confident that†in doing so the judgment will not be†(easily) enforceable where the debtor's†assets are located.

English Procedure in Respect of†Enforcement of Judgments

The principal factor which determines†the applicable rules for enforcing a†judgment in England from a foreign†jurisdiction is the identity of the court†which gives judgment (the "Adjudicating†Court"). When determining what†procedures will be required to enforce†a judgment in England, countries can†be split into three categories:

those which are signatories to the†Brussels Convention, the Lugano†Convention or Council Regulation†(EC) 44/2001 (the "Brussels†Regulation") (which includes most†European countries). This article†will collectively refer to these†Conventions and Regulation as "the†Brussels Regulation" since they are†reasonably similar in terms;

those with which the UK has bilateral†conventions (e.g., former British†dominions and colonies); and

those with which the UK has no†such conventions (for example the†United States, Japan and the States†of the former Soviet Union).

If the judgment arises out of a civil or†commercial matter from a European†Court, generally its enforceability in†most other European countries will be†governed by the Brussels Regulation.†In circumstances where a judgment†is not from a European country (i.e.,†generally categories (2) and (3) above),†the rules governing enforceability†will depend on the specific reciprocal†arrangements (if any) with the other†country...