The Growing Importance of Cross-Border Judgment Enforcement

In the dynamic field of international legal practice, enforcing judgments across borders has grown significantly, especially against online casinos.

Our law firm has substantial experience and expertise in this specialized area, notably in representing clients from Austria and Germany (inter alia) who seek to enforce judgments against online casinos by targeting their assets in Cyprus.

Cyprus is a preferred jurisdiction for online casinos due to its favorable financial and corporate environment.

EU Regulation 1215/2012: Simplifying Recognition and Enforcement Across the EU

The procedure for the recognition and enforcement of EU judgments in Cyprus is governed by the EU Regulation 1215/2012 (the “EU Regulation” ).

Recognition and enforcement of an EU judgment requires no special procedure (Article 36) or declaration of enforceability (Article 39).

In accordance with Article 37, the applicant must produce:

(a) a copy of the judgment sought to be enforced which satisfies the conditions necessary to establish its authenticity in accordance with the laws of the Member State where the judgment was issued;

(b) The certificate issued pursuant to Article 53. This certificate is granted by the competent court or authority of the member state of origin.

In addition, the judgment (as well as the certificates) only need to be translated if the requested authority so requires. In such circumstances the translation shall be certified by a person qualified to do so in one of the member states (Article 37.2).

A judgment creditor may then register the EU judgment in a straightforward manner by addressing a letter to the registrar of the competent district court to register the judgment in the register of EU judgments kept by the registrar.

Once registered, the judgment may be enforced as if it was issued by a Cyprus court.

How can a foreign judgment be enforced in Cyprus

Enforcement methods in Cyprus vary depending on the debtor’s assets located within the jurisdiction. They include:

• a garnishee order to seize assets of the judgment debtor in the hands of a third party;
• a writ of execution for the sale of movables;
• a writ for the sale of immovable property or registration of a charging order over the assets of the judgment debtor;
• a writ of possession;
• a writ of sequestration of immovable property;
• an order to the judgment debtor to make monthly payments over the judgment debt;
• the commencement of bankruptcy or liquidation proceedings (although strictly speaking this is not an enforcement method); or
• injunctions and orders encumbering the interest of the judgment debtor on shares and other stock owned.

Limited Grounds for Refusal of Recognition and Enforcement (Articles 45 and 46)

As long as the procedural requirements are met, the grounds upon which the recognition and enforcement of a foreign judgment can be challenged are quite limited. In essence, they revolve around notions of (inter alia):

• public policy: The recognition or enforcement of an EU judgment must not be manifestly contrary to public policy.The public policy exception applies where it is necessary to take account of fundamental differences between states when applying foreign law or recognising or enforcing a foreign judgment. Accordingly, individual states determine the contents of their national ‘public policies.
• irreconcilability with earlier judgments: The recognition or enforcement of a judgment may be prohibited if it conflicts with a judgment given in a dispute between the same parties in the requested Member State; – if it is irreconcilable with an earlier judgment given in another Member State or in a third State involving the same cause of action and between the same parties, provided that the earlier judgment satisfies the conditions necessary for its recognition in the Member State addressed.

It’s important to note that the threshold for proving these grounds is relatively high.

Conclusion

Our expertise in the specialized sphere of enforcing foreign judgments in Cyprus equips us to offer knowledgeable representation to our clients from Austria, Germany, and beyond.