Court judgments are to be enforced more easily abroad. The Hague Convention is intended to contribute to this. A draft law from the federal government is now available.
Despite all globalization, the jurisdiction 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 is largely regulated, but beyond the EU borders, there are no uniform regulations yet. This makes the enforcement of judgments from German courts in countries outside the EU difficult, for instance. Accordingly, there is often legal uncertainty in cross-border conflicts. This is to be changed by the implementation of the Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters.
The convention was adopted in July 2019, and the European Union has given the green light for joining 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 states and other contracting states outside the European Union. The recognition and enforcement of these judgments, but also their limits through uniform obstacles to recognition, are to be established. This is intended to create more legal certainty and predictability in cross-border legal disputes and save time and costs.
According to the convention, the decisions of foreign courts are no longer subject to substantive review beyond the provided obstacles to recognition. If there is an obstacle to recognition, however, recognition and enforcement of the foreign judgment can be denied. In addition, the convention provides for various exceptions.
With a number of third countries outside the European Union, Germany has concluded bilateral agreements on the recognition and enforcement of judgments. The changing agreements between states must be taken into account when court judgments are to be enforced internationally.
An arbitration process can therefore be a suitable alternative to a court proceeding. Arbitral awards are recognized in most states and can often be enforced more easily than a court judgment.
Experienced lawyers can provide advice.
