Following ratification in June 2024, the United Kingdom will today (1st July 2025) join the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters.
This marks a significant development in cross-border legal cooperation post-Brexit, aiming to simplify and streamline the enforcement of court judgments between the UK and other contracting states, including the EU and several other countries.
What is the Hague Judgments Convention?
The 2019 Hague Judgments Convention establishes a uniform legal framework for the recognition and enforcement of civil and commercial judgments across signatory countries. It allows judgments made in one contracting state to be enforced in another without the need for re-litigation or a new legal action, subject to a simplified registration process. This is particularly important for commercial parties who rely on cross-border contracts and dispute resolution.
What are the main benefits for commercial parties?
Currently, UK businesses face complexities and delays when trying to enforce UK court judgments abroad, often leading to duplication of legal proceedings in foreign jurisdictions. The Convention will reduce these barriers by providing a consistent, predictable mechanism for enforcement, reducing legal costs and uncertainty.
- Increased Legal Certainty and Efficiency
The Convention will provide UK businesses and consumers with greater confidence that judgments from UK courts will be recognised and enforced in other contracting states, and vice versa. This will encourage trade and investment by reducing the risk and complexity of cross-border disputes.
- Filling the Post-Brexit Legal Gap
Since Brexit, the UK no longer benefits from the Brussels Recast Regulation and Lugano Convention, which previously governed cross-border enforcement of judgments between the UK and EU/EFTA states. The Hague Convention fills much of this gap, offering a more coherent framework for enforcement with the EU and other members, although it does not govern jurisdiction allocation itself.
- Support for Commercial Dispute Resolution
Hague 2019 complements the existing Hague 2005 Convention on Choice of Court Agreements, covering non-exclusive jurisdiction agreements and judgments given in proceedings initiated after the Convention’s entry into force. This enhances the UK’s attractiveness as a forum for dispute resolution.
- Cost and Time Savings for Businesses
Especially for SMEs involved in international trade, the Convention is expected to reduce legal costs and procedural delays associated with enforcing judgments abroad, making it easier to resolve disputes and recover debts internationally.
What are the key challenges when applying the new rules?
- Limited Scope and Exclusions
The Convention applies only to certain civil and commercial matters and excludes some categories, such as certain personal injury claims. This means that some cross-border disputes will still require traditional enforcement routes.
- Fair Trial and Judicial Reliability Concerns
There are concerns about the potential obligation to recognise judgments from jurisdictions where judicial fairness or reliability may be questioned. The UK government has committed to monitoring new parties joining the Convention and may make declarations to limit application with respect to certain states if necessary.
- No Jurisdictional Rules
Unlike the Brussels or Lugano Conventions, Hague 2019 does not regulate how jurisdiction is allocated between countries. This means that disputes about which court has jurisdiction will still need to be resolved under national laws or other agreements, potentially limiting the Convention’s ability to fully streamline cross-border litigation.
Conclusion
The UK’s accession to the 2019 Hague Judgments Convention represents a major step forward in restoring and enhancing cross-border legal cooperation after Brexit. By providing a streamlined and predictable framework for the recognition and enforcement of civil and commercial judgments, it promises significant benefits for UK businesses, consumers, and the legal system. However, challenges remain, particularly regarding the scope of the Convention, concerns about judicial fairness in some jurisdictions, and the need for effective domestic implementation. Overall, the Convention is expected to bolster the UK’s position as a preferred venue for dispute resolution and facilitate smoother international trade and investment from 1 July 2025 onwards.
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