Draft Recognition and Enforcement of Judgments (2019 Hague Convention etc.) Regulations 2024

Gareth Bacon Excerpts

Tuesday 21st May 2024 General Committees

[The Parliamentary Under-Secretary of State for Justice (Gareth Bacon)]

I beg to move,

That the Committee has considered the draft Recognition and Enforcement of Judgments (2019 Hague Convention etc.) Regulations 2024.

It is a pleasure to serve under your chairmanship, Mr Pritchard. The draft regulations form part of the implementing framework for the 2019 Hague convention on the recognition and enforcement of judgments in civil or commercial matters. They will amend the Civil Jurisdiction and Judgments Act 1982 to incorporate the convention into domestic UK law.

Following unanimous support in response to a Government consultation, the UK signed the 2019 Hague convention on 12 January this year. It was laid before Parliament on 25 March for treaty scrutiny, which was completed last week without objection. The UK Government are now preparing to ratify the convention to bring it into force between the UK and the existing parties, which will be the European Union, Ukraine, Uruguay and all European Union member states apart from Denmark. This legislation is instrumental to the UK joining the convention and needs to be in place prior to ratification to ensure that the UK can meet its obligations under the convention.

The convention will come into force for the UK just over a year after ratification. The Government aim to complete ratification as soon as possible this summer, which will allow the UK to start applying the 2019 Hague convention with the other parties a year later. The UK stands to be an early adopter of the convention, as a leader in the field of private international law.

I turn to the content and aims of the draft regulations, which will implement the 2019 Hague convention in UK law and facilitate the operation of the convention once it enters into force. The purpose of the convention is to establish a set of rules about whether a civil or commercial judgment made in the court of one country may be recognised and enforced in another. Without a uniform scheme, each country’s own domestic rules determine whether a judgment from another country will be recognised and enforced there. Those rules vary from country to country, which can give rise to uncertainty and a range of challenges for effective cross-border enforcement. The convention addresses many of those challenges by providing a uniform set of rules that all parties to the convention agree to apply with each other.

Joining the 2019 Hague convention will provide greater clarity and confidence for businesses and individuals in disputes, will reduce costs, will encourage international trade and will enhance access to justice. It will also provide greater predictability as to whether a UK judgment can be enforced abroad. This will encourage businesses to choose the UK’s world-beating courts for their international litigation, further increasing the attractiveness of the UK for international dispute resolution.

I turn to the detail of the draft regulations, which make implementing provisions for how the convention will operate in the UK. These comprise three key elements.

First, the draft regulations will create a registration requirement so that anyone seeking to recognise and enforce a foreign judgment in the UK under the convention has to apply to a UK court to register the judgment first. The applicant will be required to set out initial evidence that their judgment is eligible for recognition and enforcement under the convention. That will create a form of safeguard that enables the court briefly to assess whether the grounds for recognition and enforcement under the convention have been met, rather than its being automatic. However, it is designed to be as light-touch as possible; it is not akin to new proceedings. This is a well-understood, proven model with which legal practitioners and UK courts are already familiar. It is used consistently across the existing recognition and enforcement regime in the UK. Once the judgment is successfully registered, it will be treated as a judgment made by that court.

Secondly, the draft regulations will give either party the right, once a UK court has decided whether to register a judgment under the 2019 Hague convention, to apply to have that decision set aside if they do not agree with it. This provides an opportunity for either party to ask the court to reassess its decision in the light of any additional information. This is a form of recourse similar to an appeal. The setting aside route is well established for recognition and enforcement decisions, where the court will examine only a limited amount of information at the registration stage. This is deliberate, in order to make the process swift and not unnecessarily overburden the courts. However, there will be cases in which the court might not have had all the relevant facts. The decision can then be made again with further information provided.

[Sir Liam Fox (North Somerset) (Con)]

I am generally supportive of the Government’s case. If the aim is partly to bring parties in dispute to UK courts for dispute resolution, have the Government made any assessment of the impact that that will have on the capacity of our court system?

[Gareth Bacon]

We believe that we have sufficient capacity to cope. Actually, we are speeding up the process, because these cases would have to be taken to a UK court anyway. Taking this approach will mean that the rules have been agreed in advance; we believe that that will streamline capacity and make things easier.

Thirdly, the draft regulations will ensure that foreign judgments do not make their way into the intra-UK recognition and enforcement system in the Civil Jurisdiction and Judgments Act 1982. The 1982 Act’s rules govern the recognition and enforcement of judgments between the different jurisdictions of the UK; they allow judgments made in one UK jurisdiction to be near-automatically enforced in another.

The draft regulations will exclude judgments registered under the 2019 Hague convention from that mechanism. This is to ensure that courts in each jurisdiction— Scotland, Northern Ireland and England and Wales—can individually decide whether to recognise a particular foreign judgment. In practice, that means that although a judgment from a court in England can be near-automatically recognised and enforced in Scotland under the 1982 Act, a foreign judgment registered in an English court under the 2019 Hague convention will need to be registered separately in a Scottish court under the convention.

The 1982 Act also implements other conventions to which the UK is already a party, including the 2005 Hague convention on choice of court agreements. That convention includes recognition and enforcement rules for judgments given where an exclusive choice of court agreement was in place. This is an agreement stating that a dispute between parties will be determined exclusively by a specified court or by the courts of a specified country.

To ensure consistency with the UK’s recognition and enforcement regime and to avoid confusion for users, the draft regulations will make some amendments to the implementing provisions for the 2005 Hague convention, to bring them into line with the approach taken for the 2019 Hague convention. This includes amending the recourse route from a right of appeal to the application to set aside that I have described, as well as excluding the 2005 Hague convention from the same provisions in the 1982 Act from which we are excluding the 2019 convention: those that provide for the recognition and enforcement of judgments between the UK’s jurisdictions.

The draft regulations are an important step in implementing the 2019 convention. They will strengthen the framework for the international recognition and enforcement of judgments, giving UK businesses and citizens greater clarity, certainty and confidence as they work, live and operate across international borders. I hope that the Committee will join me in supporting them.

--- Later in debate ---

[Gareth Bacon]

I am grateful to the hon. Member for Brentford and Isleworth for her support. She asked for two clarifications. The first was about the engagement that has taken place with the devolved Administrations; I am happy to confirm that there has been more or less constant engagement throughout the process. I understand that formal consent was provided for Northern Ireland by the permanent secretary at the Department of Justice in January 2024, that the Scottish Government notified the Scottish Parliament of the instrument in March, and that the Scottish Parliament agreed earlier this month that it is content for the Scottish Government to give formal consent. The delay is simply a matter of the processes going through in both Northern Ireland and Scotland. I hope that that has answered the queries of the hon. Members for Brentford and Isleworth and for Glasgow South West; I am grateful for their contributions to this debate.

[Ruth Cadbury]

There was also a point about the subsequent weakness of judicial process in certain circumstances.

[Gareth Bacon]

I apologise to the hon. Lady for that oversight. As she correctly said, there is a provision under article 29 such that if the UK objects to a new country formally ratifying the treaty, we can apply for this not to apply, both in that country and in this one. For a country that is already subject to it, she is correct to point out that there is no formal mechanism for withdrawing from it. I would venture to suggest—I will correct this if I inadvertently mis-speak here—that what would then happen is that there would be a negotiation among the parties to the convention. If agreement cannot be found, the UK could unilaterally withdraw from it, albeit that that would take a 12-month period of notice.

I am grateful for hon. Members’ contributions to the debate. Joining the 2019 Hague convention as soon as possible is in the UK’s best interests. As I have said, it is an important step for the UK to provide greater clarity and confidence for UK businesses and citizens who work and live across international borders. I am eager to see the necessary legislation in place to facilitate that. I therefore commend this draft regulations to the Committee.

Question put and agreed to.