UK to sign Hague Convention 2019: what do I need to know?

On 23 November 2023, the UK government published its response to the consultation paper on the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (Hague 2019). The most important conclusion is that the UK government will move to sign Hague 2019 as soon as possible.

What is Hague 2019?

Hague 2019 is a multilateral legal framework which establishes a uniform set of rules to facilitate the enforcement of judgments between Contracting States. Hague 2019 is intended to complement the Hague Convention on Choice of Court Agreements 2005 (Hague 2005), which already applies to the UK and provides for the enforcement of judgments given pursuant to an exclusive jurisdiction agreement. In contrast, Hague 2019 will have a broader application, providing for the enforcement of judgments deriving from a wider set of choice of court clauses, such as asymmetric and non-exclusive jurisdiction agreements.

The broad context and purpose of the UK government’s decision to join Hague 2019 is to support the interests of businesses and individuals conducting cross-border transactions and to show UK leadership in supporting multilateral private international law frameworks.

How many countries have signed / ratified Hague 2019?

At the time of writing, Hague 2019 has been signed by the EU, the US, Israel, Russia, Costa Rica, Montenegro, North Macedonia, Ukraine and Uruguay. Before coming into force in a state, Hague 2019 must also be ratified – to date it has been ratified by the EU, Ukraine and Uruguay.

When will Hague 2019 come into force in the UK?

The UK government has confirmed that it will move to sign Hague 2019 as soon as possible.

Hague 2019 will come into force in the UK 12 months after ratification and will apply only to judgments given in proceedings commenced after that date. As a result, it is likely that Hague 2019 will come into force in the UK around mid-2025.

Implementation will require legal instruments to update the Civil Procedure Rules to give effect to Hague 2019 in England and Wales, with similar steps in Scotland and Northern Ireland.

Once ratified, what will be the impact of Hague 2019?

Hague 2019 provides a uniform set of rules which apply to the enforcement of judgments between Contracting States (which includes EU member states). This supplements the existing domestic law framework on the recognition and enforcement of judgments that exists in England and Wales and other jurisdictions.

Respondents to the UK government’s consultation noted the benefits of Hague 2019 in relation to cross-border matters involving EU Member States and also to the UK financial services industry, as asymmetric and non-exclusive jurisdiction clauses are common features in financial contracts.

How will judgments qualify for recognition and enforcement under Hague 2019?

Hague 2019 applies to judgments handed down in civil or commercial matters between courts of Contracting States. Article 5 of Hague 2019 provides a list of 13 ‘bases’; if one of these requirements is met, then the judgment is eligible for recognition and enforcement under Hague 2019. Examples of the requirements include: the defendant was habitually resident in the State of origin at the time proceedings were commenced in the court of origin; the defendant gave express consent to the jurisdiction of the court of origin in the course of the proceedings in which the judgment was given; and the parties’ agreed to the jurisdiction of the courts of the State of origin (other than pursuant to an exclusive jurisdiction agreement).

Hague 2019 is broader in scope than Hague 2005; for example, Hague 2019 also applies to employment and consumer matters (subject to exceptions).

Article 2 of Hague 2019 outlines several matters that are excluded from its scope, such as (amongst others) the carriage of passengers and goods, wills and succession, insolvency matters, intellectual property, anti-trust matters and arbitration proceedings.

Are there any grounds for refusal of recognition and enforcement of judgments under Hague 2019?

Article 7 of Hague 2019 lists the grounds for refusal of recognition and enforcement. These include provisions such as lack of sufficient and / or appropriate notification of the claim to the defendant, if the judgment was obtained by fraud, or where there is an inconsistent judgment in a dispute between the same parties on the same subject matter.

Whilst comments in response to the UK government’s consultation on Hague 2019 were overwhelmingly positive, respondents queried whether Hague 2019 could force the UK into recognising judgments from jurisdictions where there are potential concerns over procedural fairness and the rule of law, for example, Russia, which has signed but not ratified Hague 2019. In its response, the UK government stated that it considers Article 29 of Hague 2019 provides an appropriate safeguard. Article 29 allows a Contracting State to make a notification preventing Hague 2019 from establishing relations with another Contracting State, even where that other State has ratified Hague 2019.

Click here to read the UK government’s Response to the Consultation in full.

With thanks to Swaathi Balajawahar for her assistance in preparing this post.