EU Recognition Legislation

Table of Contents

Court jurisdiction in legal cases involving different EU countries

Regulation (EU) No 1215/2012 – jurisdiction and the recognition and enforcement of judgments in civil and commercial matters

It updates a previous EU law on the jurisdiction, the recognition and enforcement of judgments in civil and commercial matters (known as the ‘ Brussels I regulation ’). It aims to make the circulation of judgments in civil and commercial cases easier and faster within the EU, in line with the principle of mutual recognition and the Stockholm programme guidelines.

General

The regulation applies in civil and commercial matters. It does not apply, however, to family law, bankruptcy, inheritance questions and other specific matters listed in the regulation, such as social security or arbitration.

Under the new law, what was known as the exequatur procedure under the Brussels I regulation has been abolished. This means that a judgment given in one EU country is recognised in the other EU countries without the need for any special procedure. If it is enforceable in the country of origin, it is enforceable in the other EU countries without requiring any declaration of enforceability.

The person against whom enforcement is sought must be informed of this by means of a certificate concerning a judgment in civil and commercial matters. This is drawn up at the request of any interested party (a model is provided in the regulation). The certificate must be accompanied by the judgment (if it has not already been served). It must be served on the person in reasonable time prior to enforcing the judgment.

In certain cases, the person against whom enforcement is sought may apply for refusal of the recognition or enforcement of the judgment. This can arise when he or she considers one of the grounds for refusal of recognition stipulated in the regulation to be present (e.g. where the recognition of a judgment is manifestly contrary to public policy). EU countries must notify to the Commission the competent courts to which the application has to be submitted.

Common rules of jurisdiction

There has to be a connection between proceedings falling within the scope of this law and the territory of the EU countries. Common rules of jurisdiction should, in principle, apply when the defendant is domiciled in an EU country. A defendant not domiciled in an EU country (i.e. whose permanent home is not in an EU country) should be subject to the national rules of jurisdiction applicable in the territory of the country of the court seised (the court where the proceedings are initiated).

However, certain rules of jurisdiction apply, regardless of the defendant’s domicile, in order:

to ensure that consumers and employees are protected,
to safeguard the jurisdiction of the courts of EU countries when they have exclusive jurisdiction (e.g. in the case of real estate), and
to respect the autonomy of the parties.

The rules of jurisdiction may also, under certain circumstances, apply to parties domiciled outside the EU. This may arise, for example, where those parties have agreed that the courts of an EU country should have jurisdiction.

Choice of court agreements

The law improves the effectiveness of choice of court agreements where the parties have designated a particular court or courts to resolve their dispute. It gives priority to the chosen court to decide on its jurisdiction, regardless of whether it is first or second seised. Any other court has to suspend proceedings until the chosen court has established or – where the agreement is invalid – declined jurisdiction.

The United Kingdom (1) and Ireland took part in the adoption and application of this regulation. Denmark applies the regulation in line with the agreement of 19 October 2005 between the European Community and Denmark on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

Application of Brussels I rules by the Unified Patent Court and the Benelux Court of Justice

Regulation (EU) No 542/2014 introduces new rules on the relationship between proceedings before certain courts that are common to several EU countries (such as the Unified Patent Court and the Benelux Court of Justice) on the one hand and the courts of the EU countries under the Brussels I Regulation on the other. This means that judgments handed down by these courts should be recognised and enforced in line with Regulation (EU) No 1215/2012.

Act

Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters

Regulation (EU) No 1215/2012

Regulation (EU) No 542/2014 o

Regulation (EU) 2015/281

Agreement between the European Community and the Kingdom of Denmark on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Official Journal L 79, 21.3.2013, pp. 4-4)

The Lugano Convention

Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters and cooperation with Switzerland, Norway and Iceland

Council Decision 2009/430/EC — conclusion of the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.The decision has applied since 27 November 2009. The convention entered into force between the EU and Norway on 1 January 2010, between the EU and Switzerland on 1 January 2011 and between the EU and Iceland on 1 May 2011, in accordance with Article 69(5) of the convention.

The Convention aims to achieve the same level of circulation of judgments between the EU countries and Switzerland, Norway and Iceland. Known as the new Lugano Convention, it replaces the Lugano Convention of 1988.

The decision concludes the convention on behalf of the European Community (now the EU). It also establishes the declarations to be made at the time of depositing the instrument of ratification (annexed to the decision).

Application

The convention applies to jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

It does not apply to:

tax, customs and administrative matters;
the status and legal capacity of natural persons;
rights in property arising from matrimonial relationships;
wills and succession;
bankruptcy or composition;
social security or arbitration.

Achieving a high level of circulation of judgments

The convention, signed by the European Community, along with Denmark, Iceland, Norway and Switzerland, was to come into force once it is ratified by the signatories. Denmark was a separate contracting party to this convention, because it had opted out of the then Brussels I regulation (Council Regulation (EC) No 44/2001) — subsequently replaced by Regulation (EU) No 1215/2012 on court jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

The contracting parties deposit their instruments of ratification with the Swiss Federal Council, which serves as depositary of the convention. On coming into force, the convention is open to:

future members of the European Free Trade Association;
EU countries acting on behalf of certain non-European territories that are part of their territory (for example French overseas territories such as Nouméa) or for whose external relations they are responsible;
any other state, subject to the unanimous agreement of all the contracting parties.

Based on the rules applicable between EU countries

The convention follows the present rules of the EU on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters between EU countries. This means that the rules are similar in the EU and in Switzerland, Norway and Iceland. The convention also facilitates the mutual recognition and enforcement of judgments handed down by the national courts of these countries.

The convention requires that, in general, persons domiciled (legally resident) in a state bound by the convention are sued in that state, whatever their nationality. However, it also provides for special rules of jurisdiction in certain matters, such as:

contracts: the courts of the country where the obligation is enforced have jurisdiction;
maintenance: jurisdiction resides with the courts of the place where the maintenance creditor (the person entitled to the payments for which the judgment provides) is domiciled or habitually resident;
tort (a wrongful act or an infringement of a right giving rise to injury or harm), delict (a wrongful act for which the person injured has the right to a civil remedy) or quasi-delict (a negligent act or omission which causes harm or damage to the person or property of another, and thus exposes a person to civil liability in civil law jurisdictions): jurisdiction resides with the courts of the place where the harmful event occurred or may occur.

The convention also provides for specific jurisdictions in matters relating to:

insurance;
consumer contracts; and
individual contracts of employment.
Jurisdiction in matters relating to tenancies (possession of land or property as a tenant) and real property rights resides exclusively with the courts of the contracting state in which the property is situated.

A number of protocols are annexed to the convention, among other things to ensure that the convention is interpreted as uniformly as possible.

Background

The signing of the convention marked a major institutional development. In its Opinion 1/03, the Court of Justice confirmed that the European Community was exclusively competent to conclude the new Lugano Convention. Signed on 30 October 2007, the convention is a key part of EU law and runs for an unlimited period.

Documents

Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ L 147, 10.6.2009, pp. 5-43)

Successive amendments to the agreement have been incorporated in the original text. This consolidated version is of documentary value only.

Council Decision 2009/430/EC of 27 November 2008 concerning the conclusion of the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ L 147, 10.6.2009, pp. 1-4)

Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, signed in Lugano on 30 October 2007 — Explanatory report by Professor Fausto Pocar (Holder of the Chair of International Law at the University of Milan) (OJ C 319, 23.12.2009, pp. 1-56)

Procès-verbal of rectification to the Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, signed at Lugano on 30 October 2007 (OJ L 18, 21.1.2014, pp. 70-71)