Business Debt Recovery and Collections -
Enforcement of Overseas Judgments in England

Judgment creditors from jurisdictions outside England may wish to enforce a foreign judgments for recovery and collection of debts in England or prevent re-litigations of the disputes which were determined in the foreign proceedings in England. In the latter case, it may be that a party to the proceedings was not satisfied with the level of damages awarded or was not successful at all. In these cases recognition of judgments prevent the judgment creditor re-litigating the claims afresh with a view to claiming a higher sum of damages which may be obtained in English Courts. In both cases, the judgment must be recognised in England in accordance with principles of English private international law. Where a damages award is to be enforced the judgment creditor must go a step beyond recognition and seek enforcement of the order in England, in order to satisfy the judgment against the assets of the local judgment debtor.

In this way, businesses owed money which have obtained a judgment are able to enforce the judgment in England for the purposes of collecting the business debt against the assets of the debtors in England.

Prior to international cooperation between countries involving England, judgment creditors were required to commence fresh proceedings in England to enforce a judgment obtained overseas, known as an action on the judgment. This is the means by which judgments obtained in the US, Russia, and Middle Eastern countries (amongst many others) may in most circumstances be registered and enforced in England.

English private international law prevents enforcement of foreign judgments in England where the judgment was:

1. procured by fraud;
2. made by a overseas court which lacked jurisdiction to hear the disputes
3. contrary to English public policy;
4. made in breach of an agreement between the parties selecting a particular methods or means of settling a dispute which had not been followed (such as arbitration);
5. an attempt to enforce foreign penal law; or the proceedings in the overseas court had not been served.

In these circumstances, the judgment creditor will be prevented from relying on the overseas judgment to obtain an order allowing them to collect the business debt in England.

These grounds for resisting enforcement of overseas judgments in England largely remain intact under the common law, despite developments to cater for international cooperation for the movement of judgments amongst nations. More recent legislation facilitates the movement and enforcement of judgments in England, but these defences remain available under the enabling legislation to resist enforcement of judgments in England. Limitations of time to make applications to resist registration and enforcement apply.

Evidential Requirements

Any judgment of an overseas court may be registered in England, including decisions, orders, decrees, writs of execution and determinations of costs. Applications are made to the High Court and may be made without notice to the judgment debtor. Applications must be supported by evidence which includes certified or authenticated copies of the judgment and a translation of the judgment where it is not in English.

Commonwealth Judgments

Since 1920, English Courts have had jurisdiction to recognise money judgments of courts of Commonwealth countries under the Administration of Justice Act. Such judgments may be registered within 12 months of the judgment in question, however extensions of time may be granted in appropriate cases. Under the process made available by the Administration of Judgment Act, the defendant remains able to take advantage of the defences available which are similar to those available under the common law of England.

Judgments emanating from the British Virgin Islands, Cayman Islands, Cyprus, New Zealand, Malaysia, Montserrat, Seychelles, Singapore, Sri Lanka, Trinidad and Tobago, Turks and Caicos, Trinidad and Tobago, amongst others may be registered in England under the Administration of Justice Act.

Reciprocal Enforcement Arrangements

Some countries have entered into specific reciprocal arrangements for the registration and enforcement of judgments with England. The regime is regulated by the Foreign Judgments (Reciprocal Enforcement) Act 1933, and allows for enforcement of decisions from countries including Israel, Canada, Guernsey, Isle of Man, Jersey, India and Pakistan. The application may be made within 6 years of the date that the judgment was made. Defences are available to recognition of the foreign judgments, which are the same for all intents and purposes as those under the common law.

Jurisdiction and Judgments Regulation

For the purposes of registering judgments, Member States of the European Union hold a special status. A judgment obtained in any Member State of the European Union may be enforced with relative ease in England through an expedited procedure made available under the Judgments Regulation and Civil Procedure Rules. Decrees, orders, decisions, writs of execution and costs orders emanating form Member States may be enforced under the Judgments Regulation.

Again, applications to enforce must be supported by evidence to prove the force and effect of the judgment. Although particular requirements may vary from case to case, the evidence requires:

1. the names and addresses of the judgment creditor and debtor;
2. an address for service in England of the judgment creditor;
3. the grounds upon which the applicant alleges it is entitled to have the judgment recognised in England;
4. the sum outstanding on the judgment, if debt recovery is sought, including any interest accrued and the rate, amounts and relevant dates to calculate interest;
5. notorised copies of:
1. the judgment of the foreign court (i.e. an apostille);
2. a translation of the judgment if it is not in English

Applications may be made without notice to a Master of the Queen’s Bench Division of the High Court.

After Registration

After an order has been registered, it must be served upon the defendant, either personally if the defendant is an individual or in accordance with the Companies Act or rules of court in the event that the company is a defendant. Orders for substituted service may be obtained, thereby alleviating the rigorous requirements of personal service. The order will contains notices that the defendant may apply to set aside the order made, and in most cases has a limited time to do so. When foreign judgments are enforced in England, they are enforceable as orders of the English Court.

Conclusion

The procedure to be adopted when parties to overseas disputes wish to register and enforce judgments in England relies upon the country from where the business debt giving rise to the judgment originates. Similar procedures for registration apply in each case, however each form of registration has its own requirements and must be satisfied in order for the High Court to give the overseas judgment force in England to enable recovery of the debt.