Court rulings are to be enforced more easily abroad. The Hague Convention is intended to contribute to this. A draft law by the federal government is now available.
Despite all globalization, judicial authority ends at national borders. This can lead to difficulties when judgments of German courts are to be enforced abroad and vice versa. Within the European Union, the recognition and enforcement of foreign judgments are largely regulated, but beyond the EU borders, there is still a lack of uniform regulations. This makes, for example, the enforcement of German court judgments in countries outside the EU difficult. Consequently, there is often legal uncertainty in cross-border conflicts. The implementation of the Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters is intended to change this.
The Convention was adopted in July 2019, and the European Union has given the green light for accession to the Convention. The federal government has now presented a corresponding draft law.
At its core, the Hague Convention is about the recognition and enforcement of judgments in civil and commercial matters between EU countries and other contracting states outside the European Union. The recognition and enforcement of these judgments, as well as their limits through uniform recognition barriers, are to be firmly established. This aims to create more legal certainty and predictability in cross-border legal disputes, saving time and costs.
According to the Convention, the decisions of foreign courts are no longer subject to substantive review beyond the intended recognition barriers. However, if a recognition barrier exists, the recognition and enforcement of the foreign judgment may be refused. Moreover, the Convention provides for various exemptions.
With a number of third countries outside the European Union, Germany has concluded bilateral agreements on the recognition and enforcement of judgments. The evolving agreements between the states must be considered when court rulings are to be enforced internationally.
An appropriate alternative to a court proceeding can therefore be arbitration. Arbitral awards are recognized in most countries and can often be enforced more easily than a court judgment.
Experienced lawyers can provide advice.
