How to recognize and enforce a Lithuanian or EU court decision in the United Kingdom: What you need to know after Brexit

Introduction

Enforcement of a court decision is a critical part of civil proceedings, and this is particularly important in the context of the European Union (EU) and the United Kingdom (UK). Situations when it may be necessary to implement a decision made by a Lithuanian court may arise in business relations, when a creditor seeks to recover a debt or losses from a UK person, which arise from a contract that was executed in Lithuania, or its violation. Also in family cases, when it is necessary to recover alimony when one of the former spouses lives or has property in the UK.

The withdrawal of the United Kingdom from the European Union, or Brexit, officially took place in 2020. January 31 and the transition period ended in 2020. December 31 In practice, we often face the question of how to recognize a decision made by a Lithuanian court in the UK, and in this article we will review what regulation was applied before Brexit, what options the creditor currently has and what to do so that the decision of the Lithuanian court can be enforced in the UK.

How was it before Brexit?

The Brussels I Regulation (revised) allowed automatic recognition and enforcement of judgments in all EU member states, including the UK, through a simple and automatic procedure. This regulation is still applicable to cases where a decision was made before 2020. December 31, or related to such cases. In order to be able to enforce a court decision in accordance with the Brussels I Regulation, it is necessary to obtain a certificate in a standard form from the court that issued the decision and deliver a copy of this certificate and the decision to the defendant. Once these steps have been taken, the creditor has the right to enforce the judgment as if it were a judgment of an English court and choose the methods of enforcement applicable in England.

How is it after Brexit?

Brexit has created a number of legal challenges, particularly related to the enforcement of EU court decisions in the United Kingdom. Creditors seeking to enforce EU or Lithuanian court judgments in the UK face uncertainty and potential financial instability. In such cases, debtors can abuse and avoid fulfilling their obligations according to the court decision made in Lithuania, knowing that its fulfillment is no longer so simple.

Uncertain legal perspectives can lead to delays and additional costs, which can affect the financial stability of creditors. Without a unified enforcement mechanism, there may be a threat of non-recovery of debts , which may cause significant losses, as the judgment of a court in Lithuania or another EU country may remain unenforced.

After Brexit, the enforcement of EU decisions in the UK is governed by two main legal instruments:

Hague Convention

Court decisions made after 2020 December 31, the Hague Convention on Jurisdiction Agreements applies when there is an exclusive jurisdiction agreement in favor of a court of an EU country. An exclusive jurisdiction agreement is a clause in a contract in which the parties agree that the court chosen by the parties has exclusive jurisdiction to resolve any dispute arising out of or related to the contract. This means that any claim related to the contract must be submitted to a court agreed upon by the parties.

The Hague Convention requires UK courts to recognize an exclusive jurisdiction agreement and enforce a judgment made under it without any review of the reasons. The grounds on which enforcement of such a court decision may be refused are limited, such as public order, fraud, or opposition to an earlier decision.

The enforcement process under the Hague Convention includes the following steps:

First, an appeal to the English High Court of Justice for the recognition and enforcement of the decision. When applying to court, you will need to submit a claim form and pay a court stamp fee. The following documents will need to be attached to the claim:

• A certified copy of the final court decision;

• A certified translation of the court decision, if it is not in English;

• A copy of the exclusive jurisdiction agreement;

• Witness statement regarding the amount of the debt and the exchange rate

Second, the Claim Form and documents will need to be served on the borrower along with the Acknowledgment Notice and Response Form. When serving documents on a foreign defendant, service rules must be followed, which may require court permission or a special method of service.

Third, the debtor will have 21 days to file a response to the claim or an acknowledgment of service. If the debtor does not respond, a default judgment can be applied for. If the debtor submits a response to the claim, the court will decide whether to recognize and enforce the judgment or refuse to enforce it. The debtor can challenge recognition and enforcement only on limited grounds, such as public policy, fraud or opposition to a previous judgment.

Finally, if the court recognizes and enforces the judgment, the judgment can be enforced as if it were an English court judgment. There are various enforcement methods available in England, such as a control order, garnishment, third party debt order or payment order.

English common law

For decisions made after 2020 31 December, where there is no exclusive jurisdiction agreement and the Hague Convention does not apply, the claimant will have to rely on common law rules to enforce the judgment in the UK. This means that the claimant will have to bring a new claim in an English court using the foreign judgment as the basis of the claim. The claimant will have to prove the existence and validity of the foreign judgment, and the defendant can raise various defenses such as lack of jurisdiction, natural justice, fraud or public policy. Please note that because this is a new case, the common law process is more complex and expensive than other methods.

What to do?

To effectively enforce your EU court judgment in the UK, contact Zabulis Legal for a personal consultation via email. by mail: info@zabulislegal.com . Our team is ready to help you with advice and support throughout the process of recognition and enforcement of an EU or Lithuanian court decision in the UK.