Earlier this year, our Commercial Dispute Resolution team were instructed by a Dutch based company to enforce a foreign judgment debt against a UK company.
Our client had successfully obtained a judgment in the Netherlands in February 2022 for approximately €3 million, following complex litigation that had been ongoing for more than 20 years. Although the judgment was declared immediately enforceable by that court, the defendant failed to satisfy the debt despite repeated requests and opportunities to make payment or provide security.
Our client’s objective was to secure payment or good security for the judgment debt pending the outcome of an appeal listed for hearing the following year. The key challenge lay in enforcing a foreign judgment in England and Wales.
Our advice
Our Commercial Dispute Resolution team advised initially on how to enforce the judgment in this jurisdiction. The judgment could be enforced in England and Wales pursuant to the Regulation (EU) 1215/2012 of the European Parliament and of the Council on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) (“Regulations”), which governs jurisdiction and the recognition and enforcement of certain civil judgments between EU member states. Although the UK is no longer bound by these Regulations following Brexit, the Withdrawal Agreement preserves its application to cases where proceedings were commenced before the end of the Brexit transition period. As the underlying Dutch proceedings were instigated well before that date, the Regulation continued to apply to our client’s judgment.
Under the Regulations, a judgment obtained in one EU member state can be automatically recognised and enforced in another without the need for a declaration of enforceability. We guided the client through the rules, which stated that the enforcing party must provide a copy of the judgment and a certificate from the court of origin confirming that the judgment is enforceable. That was duly obtained.
Once the certificate was provided, we assessed and advised upon the most time and cost-effective way to achieve the objective. Following our advice, our client instructed us to issue a statutory demand on the UK debtor. When the debtor failed to make payment within the statutory period, we promptly issued winding up proceedings to maintain pressure on the debtor.
The outcome
Following robust negotiations prompted by the winding up proceedings, we secured a settlement under which the full judgment debt, plus interest, was paid into an escrow account pending the outcome of the appeal. We also successfully negotiated payment of the majority of our client’s costs.
This outcome provided immediate and practical protection for our client by ensuring the entire judgment sum was safeguarded pending appeal.
Reflection and conclusion
This case provided an opportunity to reflect on the evolving landscape of cross-border enforcement post-Brexit and the strategic considerations that arise when navigating judgments obtained in EU member states. Although our client’s Dutch proceedings pre-dated the end of the transition period, meaning the Regulations remained applicable, the matter nevertheless underscored the importance of obtaining early, informed advice on the jurisdictional gateways that can still be utilised to protect clients’ interests.
It also demonstrated how the Regulations continue to offer a viable route for enforcing EU judgments in the UK in appropriate circumstances.
Our client reflected positively on their experience of working with our team, commenting:
“We are extremely grateful to the team at Hugh James for their decisive and strategic approach in securing our position. Their understanding of cross-border enforcement was invaluable, and they guided us with clarity and confidence throughout. We are very pleased with the outcome and grateful for their hard work.”
This feedback highlights the collaborative and client-focused approach that underpins our work here. The successful resolution of this matter stands as a testament to the strength and expertise of our Commercial Dispute Resolution team, and our ongoing commitment to delivering pragmatic, commercially aligned solutions in an increasingly complex legal environment.
