UK to sign Hague Judgments Convention 2019

Posted: 05/12/2023

On 23 November 2023, the UK government announced its intention to sign the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (Hague 2019). The convention requires contracting states to recognise and enforce civil and commercial judgments within its scope (subject to certain grounds upon which this can be refused). Hague 2019 is the sister instrument to the Hague Convention on Choice of Court Agreements (Hague 2005), which allows for the recognition and enforcement of judgments in civil and commercial matters in which there is an exclusive jurisdiction agreement between the parties.

Entry into force

Hague 2019 entered into force on 1 September 2023, with the EU (excluding Denmark) and Ukraine being the first two states to ratify or accede to the convention. Uruguay looks set to follow, with Hague 2019 due to come into force on 1 October 2024, following ratification on 1 September 2023. A number of other countries have signed the convention but are yet to ratify – this includes the US, Russia, Costa Rica, North Macedonia and Montenegro (with, it appears, the UK to follow). Hague 2019 does not have retroactive effect and therefore does not apply to a judgment handed down (or indeed proceedings commenced) prior to the convention entering into force for a particular state.

Hague 2019 – scope and procedure

The facilitation of the enforcement of judgments in a cross-border dispute is vital for international trade and investment. Reliable and easy to access processes for such enforcement reassures businesses that effective mechanisms are in place to secure redress in other jurisdictions and, as such, it may encourage UK businesses to enter into cross-border contracts and investment relationships.

While most countries have domestic rules which allow judgments from other countries to be recognised and enforced in certain circumstances, these rules differ and can often involve relitigating certain aspects of a case (which can be costly and time consuming for the parties involved). Hague 2019 therefore seeks to provide a uniform approach to increase legal certainty.

While Hague 2005 does provide for recognition and enforcement of EU judgments in the UK, this is limited to circumstances in which a judgment has been given by a court specified in an exclusive jurisdiction clause between the parties. Its scope is therefore limited. The scope of Hague 2019 is intended to be wider and may (in due course) seek to encompass global jurisdictions, such as the US.

Article 5 of Hague 2019 provides a list of jurisdictional filters (described as ‘bases’). If at least one of these bases is met, then the judgment may be recognised and enforced under Hague 2019. The full list of 13 bases can be viewed in the text of the convention here.

The bases include relatively standard provisions, such as the defendant’s habitual residence in the state of origin at the time proceedings were commenced (Article 5(a)), and the parties’ agreement to the jurisdiction of the courts of the state of origin (Article 5(m)).

However, Hague 2019 also has a wider scope. For example, it may also apply if a court in the state of origin rules on a contractual obligation and the place of performance of that obligation was the state of origin (Article 5(g)). There is also a base for tort claims where the damage was caused in the state of origin (Article 5(j)).

If any of the bases set out in Article 5 are met, the judgment will become eligible for recognition and enforcement under Hague 2019. It is interesting to note that Hague 2019 refers to choice of court agreements in favour of a court of the state of origin, other than an exclusive choice of court agreement. This means it potentially has a much wider application than Hague 2005 and the explanatory note to the convention confirms that it is intended to ‘complement’ Hague 2005, rather than replace it.

Article 7 of Hague 2019 sets out the grounds for refusal of recognition and enforcement. These include provisions such as if the judgment was obtained by fraud, or where recognition and enforcement would be manifestly incompatible with public policy.

Where Hague 2019 applies, the judgment creditor may apply to the English court for registration of the judgment without giving notice to the judgment debtor. Under Article 12, the judgment creditor must provide the court with:

• a certified copy of the judgment;
• in the case of a default judgment, a document proving that the defaulting party was notified of the document which instituted the proceedings;
• any documents necessary to establish that the judgment has effect or, where applicable, is enforceable in the state of origin.

Wider significance of Hague 2019

Given the extensive trade between the UK and the US, if ratified by both countries, Hague 2019 will provide a significant new method of enforcement (in the absence of a bilateral treaty in relation to enforcement). For US businesses (for example), it would make enforcing US judgments in England and Wales far cheaper and simpler than the present position (which may require fresh proceedings to be brought in England and Wales).

Where next?

The necessary next stage will be for the UK to sign Hague 2019 – the signature itself will have no legal effect but ratification could follow thereafter. The ratification process will take time to effect, with a 12 month period specified within the convention in which the other Hague 2019 convention states can ‘opt out’ in relation to a ratifying state.

Once the signing and ratification process has been undertaken (and the relevant ‘opt out’ period has passed), parties can seek to utilise Hague 2019 to recognise and enforce foreign judgments issued by contracting states, in the UK.

Return to news headlines