The High Court in Midtown. This is what recognition and enforcement looks like ex-EU.

Don’t it always seem to go, you don’t know what you’ve got till it’s gone. Recognition and enforcement intra-EU goes smoothly in civil and commercial matters. So smoothly in fact, the European Commission wanted to abolish the potential for refusal altogether in the Brussels I Recast (regular readers are aware I reported on it at the time of negotiation).

Thank you Clyde & Co for alerting me to a case which highlights how complicated things can get outside of the EU context. In [2017] EWHC 519 (Comm) Midtown Acquisitions v Essar Global parties settled their dispute in an agreement, under which the defendant accepted liability and “confessed to judgment”. The New York courts then entered a Judgment by Confession (similar to an English consent judgment). Recognition and enforcement was sought in England.

In the Brussels system, discussion is still possible on the very notion of ‘judgment’ as I have recently reported (see my postings on Pula Parking and Zulfikarpašić). Refusal of recognition is possible on very narrow grounds. Famously, under the Brussels regime, recognition does not require res judicata of the foreign (intra-EU) judgment. (A misleadingly simple statement made in all Reports. But I’ll leave the detail for another time (see eg Gothaer for earlier analysis).

Outside the Brussels regime however (lest the Brexit negotiations yield a continuing bridge between civil procedure in the UK and EU this will also apply to judgment issued by UK courts), discussion on these two points re-emerges: when can a ruling be considered a ‘judgment’, and does it have res judicata? Defendant in Midtown argues that the New York judgment was not a “judgment” as that expression is used in English law because (i) there was no lis between the parties in New York, (ii) the New York judgment was not final and conclusive and (iii) the New York judgment was not on the merits.

Teare J rejected all three arguments on the basis of relevant precedent. The judgment merits reading for it is a good reminder of the extent of argument ensuing when one is not covered by the umbrella of EU or international harmonisation of recognition and enforcement.  Complications which are not likely to assist the London legal market in maintaining its attraction post Brexit.

Geert.

(Handbook of) European Private International Law, Chapter 2, Heading 2.2.16.

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  1. #1 by McManus Williams on 07/04/2017 - 6:25 PM

    I read your post as a Bristol accountant trying to source as much information as I can on Brexit from blogs around the web. I normally give business and tax advice, but of late have had to ensure I am up to date on EU law, Brexit, and what it all means for small and medium sized business owners in the UK

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