2019 Hague Convention enters into force in the UK

The Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters came into force in the UK on 1 July. The convention provides for a simplified framework for the recognition and enforcement of civil judgments between contracting states (including EU member states) where certain criteria are met. This supplements the 2005 Hague Convention (on Choice of Court Agreements) which facilitates the enforcement of judgments given by courts named in an exclusive jurisdiction agreement.

The international enforcement of court judgments is governed by a mixture of international conventions, bilateral treaties and national laws. The 2005 Hague Convention on Choice of Court Agreements provided a simplified procedure in respect of the enforcement of judgments given by a court named in an exclusive jurisdiction agreement between the parties. The 2019 Hague Convention supplements the 2005 Hague Convention and covers a wider range of judgments which are not given by a court named in an exclusive jurisdiction agreement. It provides a simplified framework for the cross-border enforcement of judgments between contracting states.

The 2019 Hague Convention does not, however, apply to all judgments. In broad terms, it applies where there is a sufficiently close connection between the defendant (or the claim) and the country that gave the judgment. At present, the particular practical relevance of the convention is in respect of the enforcement of judgments between the UK, Ukraine and EU member states.

Currently, the 2019 Hague Convention has come into force in 30 contracting states, including all 27 EU member states, the UK, Ukraine, and Uruguay. It will also come into force in 2026 in Albania, Andorra, and Montenegro. The US, Russia, Israel, and Costa Rica have signed the convention but have not yet ratified it, meaning it is not yet in force in those jurisdictions.

Article 5 of the convention sets out the particular circumstances in which it applies. Some of the main situations where it applies are where:

• the court of origin had jurisdiction pursuant to a non-exclusive or asymmetric jurisdiction clause.
• in a tort claim, the act directly causing the harm occurred in the state of the court of origin.
• In a contract claim, where the place of performance of the relevant obligation was in the state of the court of origin.
• The respondent was "habitually resident" in the state of the court of origin at the time they became party to the proceedings or had their principal place of business there.
• The claims related to the activities of a branch, agency or establishment of the respondent which was situated in the state of the Court of Origin.
• The respondent submitted to the jurisdiction by consent or arguing the merits without contesting jurisdiction.

There are other specific criteria relating to interests in land and trusts and there are some special provisions relating to consumers.

The 2019 Hague Convention applies to final judgments in civil and commercial matters (including costs rulings and non-money judgments) where the court proceedings were issued on or after 1 July 2025. However, it does not cover interim measures such as freezing injunctions, nor does it cover judgments in certain types of proceedings, including insolvency, defamation, privacy, intellectual property and some competition matters.

The convention sets out limited grounds that can be relied on to resist enforcement of a judgment. These include where the judgment was obtained by fraud and enforcement would be manifestly incompatible with public policy in the enforcement state or the judgment contains exemplary or punitive damages. It will, therefore, make it significantly more difficult for a defendant to resist or delay the cross-border enforcement of a judgment where the convention applies.

Osborne Clarke comment 

The entry into force of the 2019 Hague Convention in the UK is a significant step in simplifying the enforcement of judgments between the UK and EU member states (and Ukraine). It goes a significant way towards replacing the system of enforcement provided for in the Recast Brussels Regulation – an EU regulation that no longer applies to the UK following Brexit.

The convention is good news for those seeking to enforce judgments between the Ukraine, EU and UK.  Views on whether it goes far enough in terms of the types of judgments that it covers will very much depend on whether you are seeking to enforce or resist enforcement.