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Ela Barda, Ariane du Rusquec and Inès Aramouni’s chapter on the Enforcement of Foreign Judgments published in Lexology’s Getting The Deal Through 2024 Guide

1 September 2023

Counsel Ela Barda and Associates Ariane du Rusquec and Inès Aramouni’s chapter was published in Lexology’s Getting the Deal Through, and can be found here.

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The chapter covers local insights into relevant treaties, conventions and other sources of law; limitation periods; types of enforceable order; competent courts; separation of recognition and enforcement; opposition; jurisdiction of the foreign court; awards and security for appeals; enforcement and pitfalls; and recent trends.

Enforcement of Foreign Judgments

Legislation

Treaties

Is your country party to any bilateral or multilateral treaties for the reciprocal recognition and enforcement of foreign judgments? What is the country’s approach to entering into these treaties, and what, if any, amendments or reservations has your country made to such treaties?

France has a favourable approach to the conclusion of international agreements to facilitate the enforcement of foreign judgments in France. As such, the country has entered more than 20 bilateral and numerous multilateral treaties.

As a member of the European Union, France benefits from the many mechanisms of judicial cooperation provided for under EU law for the enforcement of cross-border judgments in various fields, such as civil and commercial matters and insolvency proceedings. The main text applicable to the recognition and enforcement of EU judgments in civil and commercial matters is the Brussels I Recast Regulation ( EU Regulation No. 1215/2012 ). Other EU instruments developed to facilitate cross-border recovery include the European Enforcement Order Regulation (Regulation No. 805/2004, which applies to uncontested claims), and the European Account Preservation Order (Regulation No. 655/2014, which establishes a procedure to facilitate cross-border debt recovery).

The recognition and enforcement in France of judgments from Denmark, Norway, Switzerland or Iceland is governed by the 2007 Lugano Convention . France is also bound by the Hague Convention of 30 June 2005 on Choice of Court Agreements and the Hague Convention of 2 July 2019 on Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters due to the EU’s accession to these conventions.

France is also party to a number of treaties in family and adoption matters, both at European and non-European level.

Law stated - 24 July 2023

Intra-state variations

Is there uniformity in the law on the enforcement of foreign judgments among different jurisdictions within the country?

The legal framework for the enforcement of foreign judgments is uniformly applicable throughout France, in both mainland France and the French overseas departments and regions, as well as the French overseas collectivities.

However, by way of exception and historical reasons, specific rules apply in certain departments of eastern France (Bas- Rhin, Haut-Rhin and Moselle), notably regarding real estate attachments.

Law stated - 24 July 2023

Sources of law

What are the sources of law regarding the enforcement of foreign judgments?

The sources of law applicable to recognition and enforcement differ depending on which country the foreign judgment originates from. The enforcement of foreign judgments in France is governed by the aforementioned European regulations and international conventions when applicable.

In the absence of a bilateral or multilateral agreement, the legal framework applicable to the recognition and enforcement of foreign judgments is the general regime (French domestic law) provided for by the French Codes of Civil Procedure and Civil Enforcement Procedures, as well as the principles developed by the case law under these texts. Although the principle of ‘judicial precedent’ does not exist in French law, decisions of principle handed down by the French Supreme Court ( cour de cassation ) are generally followed by lower courts.

The regulation of the enforcement measures results from a wide range of legal texts. The French Code of Civil Procedure (CPC) and the French Code of Civil Enforcement Procedures (CPCE) set out the legal framework of enforcement under French law and are complemented by the French Code of Judicial Organization, which determines competent judges. Some specific texts complete this legislative framework, such as the French Labour Code, which regulates the attachment of employees’ salaries, or the French Transport Code, which sets out the conditions for the seizure of vessels and aircrafts.

Law stated - 24 July 2023

Hague Convention requirements

To the extent the enforcing country is a signatory of the Hague Convention on Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters, will the court require strict compliance with its provisions before recognising a foreign judgment?

Although France is not a signatory to the Hague Convention on Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters of 2 July 2019, it is bound by the Convention due to accession by the European Union. However, this Convention shall not affect the application by a contracting state of a treaty that was concluded prior to this Convention and will not be applied in such cases (article 23).

In addition, the 2019 Hague Convention, which will enter into force on 1 September 2023, will only apply to the recognition and enforcement of judgments in France if, at the time the proceedings were instituted in the state of origin, the Convention was in effect between that state and France.

Law stated - 24 July 2023

Bringing A Claim For Enforcement

Limitation periods

What is the limitation period for enforcement of a foreign judgment? When does it commence to run? In what circumstances would the enforcing court consider the statute of limitations of the foreign jurisdiction?

There is no specific provision in French law regarding the statute of limitations for the enforcement of foreign judgments. The 10-year statute of limitations applicable to all French court decisions is therefore deemed applicable. The beginning of this period is the date on which the judgment becomes enforceable in France.

EU Judgments issued within the scope of the Brussels I Recast Regulation are ipso facto enforceable in any member state (including France). The enforcement of foreign judgments issued outside the scope of the Brussels regime may only occur upon the issuance of a declaration of enforceability (also called an ‘exequatur order’) by French courts. Therefore, the enforcement of a foreign judgment that was declared enforceable by a French court must be pursued within 10 years from the date of the exequatur order (being noted, however, that this period can be interrupted by each attempt or act of enforcement, in which case a new 10-year period will begin to run).

Conversely, the procedure for obtaining an exequatur order itself is not subject to any time limitations. In this regard, the French Supreme Court recently reaffirmed that exequatur proceedings may be initiated at any time (French Supreme Court, 11 January 2023, docket No. 21-21.168).

Furthermore, an application for exequatur cannot be granted by the French courts if the right to enforce the foreign judgment is already time-barred in the country of origin. In practice, therefore, the enforcing court will also take into account the limitation period of the foreign court.

Law stated - 24 July 2023

Types of enforceable order

Which remedies ordered by a foreign court are enforceable in your jurisdiction?

Under French domestic law, all remedies (including provisional remedies) are, by way of principle, enforceable, except those that do not comply with the rules of the so-called French conception of international public policy (ie, principles considered fundamental to the French society). On this basis, an award of punitive damages is not in itself considered contrary to international public policy, but French courts may deny granting exequatur where the amount awarded by the foreign judgment is deemed disproportionate to the loss suffered and the debtor’s breach of contractual obligations (French Supreme Court, 1 December 2010, docket No. 09-13.303).

Moreover, judgments ordering a payment by way of a penalty ( astreinte ) are enforceable in France only if the amount of the penalty has been definitively set by the foreign court.

Further, pursuant to article 54 of the Brussels I Recast Regulation, if an EU judgment contains a measure unknown in French law, such measure must, to the extent possible, be adapted to a measure under French law that has equivalent effects attached to it and pursues similar aims. Also, pursuant to this Regulation, provisional or interim measures ordered by an EU member state may be enforced in France, provided that such measures are ordered by a court with jurisdiction on the merits.

Law stated - 24 July 2023

Competent courts

Must cases seeking enforcement of foreign judgments be brought in a particular court?

Yes. Under French domestic law, enforcement proceedings of a foreign judgment (also known as exequatur proceedings) must be initiated by way of summons before the Civil Court where the defendant has their primary residence, or, for corporate entities, their place of business. If the defendant’s primary residence is located abroad or is unknown, the creditor may bring the action before the court of their choice (the Paris Civil Court has recognised experience in international enforcement matters, and its referral by judgment creditors is a common practice). The exequatur proceedings are adversarial, and the debates are public.

The foregoing developments do not apply to EU judgments, which are automatically enforceable in France without the need for an exequatur order.

Once the foreign judgment has been declared enforceable, the judgment creditor can request the debtor to perform their obligations under the judgment. If the debtor fails to do so, the judgment creditor may take enforcement measures against the debtor. Disputes relating to enforcement measures must be brought before the enforcement judge ( juge de l’exécution ) who has sole jurisdiction over such claims.

Law stated - 24 July 2023

Separation of recognition and enforcement

To what extent is the process for obtaining judicial recognition of a foreign judgment separate from the process for enforcement?

Under French law, the recognition of a foreign judgment, the declaration of enforceability (obtained through exequatur proceedings) and the enforcement of the foreign judgment are three distinct notions:

  • The recognition of a judgment confers substantive effectiveness on the foreign judgment as well as the authority of res judicata, subject to an examination of the international regularity of such judgment. Under French domestic law, judgments handed down by a foreign court in some non-property matters (for example, a divorce granted by a foreign authority) are ipso facto recognised in France without the need of a declaration of enforceability (exequatur order).
  • Exequatur proceedings are intended to confer enforceability on a foreign judgment in order to enable the judgment creditor to carry out enforcement measures on the French territory.
  • Once a declaration of enforceability (exequatur order) has been obtained through the exequatur process, the judgment creditor can request the debtor to perform their obligations under the judgment, and, failing spontaneous performance, may take enforcement measures against the debtor (eg, seizure of the debtor’s French assets).

Recognition and enforcement processes may overlap, since when recognition is not automatic, they are both generally requested as part of the exequatur proceedings.

EU judgments are automatically recognised and deemed enforceable in France without any specific proceedings being required (articles 36 and 39 of the Brussels I Recast Regulation). For the purpose of enforcement of the foreign EU judgment, the judgment creditor must simply provide a copy of the judgment and a certificate certifying that such judgment is enforceable in the member state of origin.

Law stated - 24 July 2023

Opposition

Defences

Can a defendant raise merits-based defences to liability or to the scope of the award entered in the foreign jurisdiction, or is the defendant limited to more narrow grounds for challenging a foreign judgment?

French judges are not allowed to retry a foreign judgment on its merits. They can only ascertain the enforceability of the foreign judgment in its country of origin and the so-called international legality of the foreign judgment, for which the requirements are exhaustively set out in French case law and international legal instruments to which France is party.

In summary, a defendant can only challenge the recognition and enforcement of a foreign judgment in France by demonstrating one or more of the following criteria:

  • the foreign judgment is not enforceable in its country of origin (being noted that the foreign judgment does not need to be final, ie, it can be enforced in France even if it is subject to a non-suspensive appeal abroad);
  • the foreign judgment was rendered by a foreign court without jurisdiction (this condition is assessed restrictively – in practice, the defendant will have to demonstrate that the French court had exclusive jurisdiction over the matter or that the dispute was clearly not connected with the foreign state);
  • the foreign judgment was vitiated by fraud;
  • the foreign judgment is irreconcilable with another judgment; or
  • the foreign judgment is contrary to the so-called French international public policy, which encompasses both substantive and procedural requirements (such as due process and fair trial).

Therefore, a defendant cannot raise merits‐based defences to challenge the recognition and enforcement of the foreign judgment in France.

Law stated - 24 July 2023

Injunctive relief

May a party obtain injunctive relief to prevent foreign judgment enforcement proceedings in your jurisdiction?

A party wishing to oppose the enforcement of a foreign judgment may bring an action to declare the judgment non- enforceable ( action en inopposabilité ) either as a preventive measure before the Civil Court (ie, before the creditor takes steps to enforce the foreign judgment in France), or as a reactive measure before the enforcement judge, with the aim of blocking the exequatur procedure initiated by the creditor or the enforcement measure taken against the defendant’s assets in France.

Regardless of the type of action taken to challenge the enforcement of the judgment in France (preventive or reactive action), the party will have to show that the foreign judgment does not meet the conditions necessary for its recognition and enforcement in France.

As part of the preventive action, if the application is successful, the foreign judgment will be declared unrecognised, in whole or in part, and cannot be enforced in France.

If the foreign judgment has already been declared enforceable in France (either because the creditor has already obtained an exequatur order, or because it is an EU judgment and therefore considered directly enforceable in France), bringing an action for non-enforceability will not automatically suspend enforcement measures and the debtor will have to make a specific application to the French court for this purpose. It is also possible to apply to limit the enforcement of protective measures, or to make the enforcement conditional to financial guarantees.

Law stated - 24 July 2023

Requirements For Recognition

Basic requirements for recognition

What are the basic mandatory requirements for recognition of a foreign judgment?

Under French domestic law, foreign judgments handed down in some non-monetary matters (such as divorce, adoption, parental authority and inheritance) are automatically recognised in France without prior control of their international regularity. Similarly, the instruments of judicial cooperation in civil and commercial matters applicable in France provide in principle that the foreign judgment must be recognised without any special procedure being required (see, for example, article 33 of the 2007 Lugano Convention or article 36 of the Brussels I Recast Regulation).

The recognition of other judgments that are not automatically recognised in France is subject to verification of their ‘international legality’, the conditions for which are well established in French domestic law by the landmark Cornelissen case law (French Supreme Court, 20 February 2007, docket No. 05-14.082). French courts must assess: the so-called ‘indirect international’ jurisdiction of the foreign court, based on the connection of the dispute to the foreign court before which the claim was brought and the absence of exclusive jurisdiction in favour of the French courts; the compliance of the foreign judgment with the rules of international public policy, which encompasses both substantive and procedural requirements considered fundamental for the French society (such as due process and fair trial); and the absence of fraud.

The automatic recognition of a foreign judgment does not preclude the French courts from carrying out a subsequent review in the event that the foreign judgment is invoked before a French court and a party challenges its legality. The review of said international legality is modelled on the review carried out in the context of an application for exequatur.

Law stated - 24 July 2023

Other factors

May other non-mandatory factors for recognition of a foreign judgment be considered and, if so, what factors?

No other factors are taken into account for the recognition of a foreign judgment.

Law stated - 24 July 2023

Procedural equivalence

Is there a requirement that the judicial proceedings where the judgment was entered correspond to due process in your jurisdiction and, if so, how is that requirement evaluated?

The circumstances that may justify refusal of an application to enforce a foreign judgment are exhaustively defined by French case law and the bilateral and multilateral instruments to which France is party. The requirement of procedural equivalence is not in itself one of the criteria, so French courts cannot refuse exequatur on the grounds that foreign procedural rules do not correspond to those of French domestic law.

That said, the French enforcement judge’s review of the international validity of the foreign judgment requires verification of its conformity with the French conception of international procedural public policy, regardless of whether the foreign judgment was rendered in an EU member state or in a third state.

Conformity with international procedural public policy requires that the foreign proceedings giving rise to the foreign judgment whose exequatur is sought must have complied with certain procedural guarantees, in particular those relating to due process and fair trial as set out in article 6 of the European Convention on Human Rights. Therefore, a foreign judgment will neither be recognised nor enforced in France if a party can demonstrate before the French enforcement judge that their rights have been objectively compromised by a violation of fundamental procedural principles.

Limited or non-existent access to pre-trial discovery does not constitute sufficient grounds, especially given the fact that such a procedural tool does not exist in French law. On the other hand, the violation of international public policy will be upheld if it is proven that the defendant was not notified of the proceedings before the foreign court in such a way as to enable them to exercise their rights of defence, and that they did not have the opportunity to exercise an effective recourse against the foreign judgment.

Law stated - 24 July 2023

Jurisdiction Of  The Foreign Court

Personal jurisdiction

Will the enforcing court examine whether the court where the judgment was entered had personal jurisdiction over the defendant and, if so, how is that requirement met?

In the case of judgments handed down outside the EU, the jurisdiction of the foreign court is one of the criteria to be examined by the enforcing court. However, the scope of this review is limited to checking the ‘indirect international jurisdiction’ of the foreign judge. In this respect, the enforcing court cannot apply their own internal rules of conflict of jurisdiction, but must merely verify that French courts do not have exclusive jurisdiction over the matter and that the dispute is sufficiently connected to the foreign country. In practice, this connection is assessed according to various factors such as the nationality of the parties, the place of performance of the contract, the existence of a choice of court agreement, etc.

The enforcing court may also check that the choice of the court or origin was not fraudulent (eg, that the claimant did not artificially present the conditions necessary to establish the jurisdiction of the foreign court, to escape the jurisdiction of another court that would normally have had jurisdiction).

Conversely, in the case of EU judgments, the jurisdiction of the member state of origin may not be examined by the enforcing court (article 45.3). By way of exception, exequatur may be refused if it is established that the foreign judgment was given in breach of the rules of exclusive jurisdiction provided for by the Brussels I Recast Regulation or of the mandatory rules of jurisdiction provided for in that same text, designed to protect weaker parties in contracts concluded with insurers, consumers and employees (article 45.1.e).

Law stated - 24 July 2023

Subject-matter jurisdiction

Will the enforcing court examine whether the court where the judgment was entered had subject- matter jurisdiction over the controversy and, if so, how is that requirement met?

No. Neither the bilateral and multilateral judicial cooperation instruments concluded by France or enacted by the EU, nor the rules of French domestic law (which are applicable in the absence of a cooperation instrument), provide the possibility of the enforcing court examining the subject-matter jurisdiction of the court of origin.

Law stated - 24 July 2023

Service

Must the defendant have been technically or formally served with notice of the original action in the foreign jurisdiction, or is actual notice sufficient? How much notice is usually considered sufficient?

Failure to properly serve a defendant in the country of origin may constitute grounds for the refusal of recognition and enforcement of a foreign judgment given in default of appearance. This means that the defendant must be notified of the proceedings in a sufficient time and manner as to enable them to organise their defence.

French law does not indicate what period of notice would be considered sufficient; instead, this assessment will be made by the enforcing court on a case-by-case basis. For example, the French Supreme Court ruled that a defendant who had been served 15 days before the first hearing in repudiation proceedings had not been able to organise their defence in the proceedings.

Law stated - 24 July 2023

Fairness of foreign jurisdiction

Will the court consider the relative inconvenience of the foreign jurisdiction to the defendant as a basis for declining to enforce a foreign judgment?

No. Neither the bilateral and multilateral judicial cooperation instruments concluded by France or enacted by the EU, nor the rules of French domestic law, provide any possibility for the French enforcing court to consider the relative inconvenience of the foreign jurisdiction as basis for declining the exequatur of the foreign judgment.

Law stated - 24 July 2023

Examination Of The Foreign Judgment

Vitiation by fraud

Will the court examine the foreign judgment for allegations of fraud upon the defendant or the court?

The absence of fraud is a condition for the international legality of foreign judgments, which is necessary for their recognition and enforcement in France. French courts may therefore refuse exequatur on the grounds that the foreign judgment is vitiated by fraud.

The enforcing court checks particularly that the choice of foreign court has not been fraudulent. Such fraud may be found where it is established that the proceedings were brought before the foreign court for the sole purpose of obtaining recognition of a right that the French court would not have recognised. Similarly, exequatur may be refused in cases of fraud in the choice of the law applicable to the dispute. This may be the case where it is established that the applicant deliberately manoeuvred (by changing their primary residence, nationality, etc) to exclude the application of another more unfavourable law that would normally have been applicable.

Allegations of fraud may also be raised as a violation of French international public policy. For example, recognition and enforcement of a foreign judgment based on falsified evidence or fraudulent witness statements is likely to be denied.

Law stated - 24 July 2023

Public policy

Will the court examine the foreign judgment for consistency with the enforcing jurisdiction’s public policy and substantive laws?

Among the conditions of international legality of a foreign judgment is compliance with the French conception of international public policy, which encompasses both substantive and procedural requirements. A mere violation of French substantive laws is not sufficient to constitute a violation of international public policy. The breach must be serious and undermine principles considered fundamental to French society, such as the requirement for due process and fair trial.

For example, a decision based on the partiality of a court or on false testimony is likely to be considered contrary to the French conception of international public policy. This may also be the case if the defendant was not aware of the foreign proceedings initiated against them and hence was not able to defend themselves before the foreign court.

Exequatur may also be refused if the foreign judgment was rendered by default and the defendant was prevented from an effective opportunity to challenge the decision before the foreign higher courts.

Law stated - 24 July 2023

Conflicting decisions

What will the court do if the foreign judgment sought to be enforced is in conflict with another final and conclusive judgment involving the same parties or parties in privity?

If a foreign judgment whose enforcement is sought in France conflicts with another final judgment involving the same parties and the same cause of action, French courts will refuse to enforce it on the grounds that the new judgment is irreconcilable with the latter.

Consequently, a conflict between a foreign judgment and an earlier foreign judgment rendered in France, in the same country or in a third country and already deemed enforceable in France, will prevent its recognition and enforcement. The same principle is laid down for EU judgments in article 45 of the Brussels I Recast Regulation.

In addition, if proceedings are pending in France, a judgment given abroad on the same matter and between the same parties, and which is recognised in France, will take precedence over the pending French proceedings.

Law stated - 24 July 2023

Enforcement against third parties

Will a court apply the principles of agency or alter ego to enforce a judgment against a party other than the named judgment debtor?

In France, one cannot enforce a judgment against a party that is not named as a debtor in the judgment. Similarly, in principle, enforcement is allowed only against assets belonging directly to the debtor.

By exception, however, a creditor may bring an action against a third party’s property in France by first seeking a declaration of the existence of a ‘simulation’, to establish that the third party is merely a front company and that the real owner of the property against which the creditor wishes to enforce the judgment is the debtor. Such action can be brought under articles 1201 and 1202 of the French Civil Code. Similarly, the creditor can apply to the enforcement judge for protective measures to be taken against assets held indirectly by the debtor (eg, via companies), by requesting that the corporate veil be lifted.

Law stated - 24 July 2023

Alternative dispute resolution

What will the court do if the parties had an enforceable agreement to use alternative dispute resolution, and the defendant argues that this requirement was not followed by the party seeking to enforce?

The foreign court’s failure to comply with an alternative dispute resolution method agreed between the parties cannot be sufficient to serve as a legitimate reason to refuse exequatur.

According to case law, the French enforcing court’s consideration of such an alternative would constitute a review of the merits of the foreign decision, which is prohibited (Paris Court of Appeal 19 November 2013, docket No. 12/17381, on the application of an arbitration clause).

Although the decision was handed down in the context of a dispute relating to the setting aside of an arbitration award, the Paris Court of Appeal also ruled that any failure to comply with a prior conciliation clause could not be interpreted as constituting a breach of international public policy, and therefore cannot justify a refusal to grant enforcement (29 January 2019, docket No. 16/20822). This principle should also apply to the enforcement of foreign judgments.

However, the French Supreme Court very recently ruled that exequatur may nevertheless be refused if it can be established that the foreign judgment was obtained in fraud of the arbitration (French Supreme Court, 17 May 2023, docket No. 21-18.406).

Law stated - 24 July 2023

Favourably treated jurisdictions

Are judgments from some foreign jurisdictions given greater deference than judgments from others? If so, why?

Apart from the simplified recognition and enforcement processes provided for in the bilateral and multinational conventions to which France is a party (in particular, the automatic recognition regime provided for in the Brussels I Recast Regulation), all foreign judgments are given the same deference, as French courts examine the international legality of all foreign judgments according to the same criteria, regardless of where they originate from.

Law stated - 24 July 2023

Alteration of awards

Will a court ever recognise only part of a judgment, or alter or limit the damage award?

According to French case law, the enforcing court may recognise only one or several parts of the foreign judgment, provided that the various parts of the judgment are separable. This would be the case, for example, if several sentences were handed down under several contractual provisions.

For example, in the case of a foreign judgment awarding, on the one hand, compensatory damages and, on the other, penalties for late payment, if the latter are deemed disproportionate and contrary to French international public policy, the enforcing court may grant partial exequatur in respect of the first part of the award and set aside the remainder, provided that these awards are distinctly separable.

On the other hand, French courts may not modify the quantum of a damage award they deem punitive or disproportionate, as this would constitute a review of the foreign judgement on the merits, which is prohibited at the exequatur stage.

An award of punitive damages is not in itself considered contrary to international public policy, but French courts may deny granting exequatur where the amount awarded by the foreign judgment is deemed disproportionate to the loss suffered (French Supreme Court, 1 December 2010, docket No. 09-13.303).

Law stated - 24 July 2023

Effect of sanctions

What effect do foreign or domestic sanctions have on the enforcement of foreign judgments in your jurisdiction? Will a court refuse enforcement of a judgment against or in favour of a sanctioned entity or individual? If so, which sanctions regimes do the courts of your jurisdiction recognise?

Sanctions laid down by European regulations as well as those provided for by UN resolutions may constitute grounds for denying enforceability of a foreign judgment.

For example, in accordance with Regulation (EU) No. 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, the French enforcing court may deny enforcement of a foreign judgment if it would result in making funds or economic resources available to sanctioned Russian individuals or entities.

Difficulties may also occur when the sanctioned party is a defendant in exequatur proceedings. Following the eighth package of sanctions imposed by the EU against Russia, doubt has arisen as to whether it is even possible for a sanctioned person to be represented by counsel in French enforcement proceedings. The exequatur of a foreign judgment against a party who has not been able to defend itself at the enforcement stage seems questionable, since such a situation would violate the principles of due process and fair trial guaranteed by the European Convention on Human Rights.

Law stated - 24 July 2023

Awards And Security For Appeals

Currency, interest, costs

In recognising a foreign judgment, does the court convert the damage award to local currency and take into account such factors as interest and court costs and exchange controls? If interest claims are allowed, which law governs the rate of interest?

Although it is not common practice, some enforcing courts have, in a few scattered decisions, converted the foreign damage award to local currency. However, while performing such conversion, enforcing courts are not allowed to take into account the devaluation of the foreign currency, as this would result in an alteration of the foreign decision (French Supreme Court, 19 September 2007, docket No. 06-17.096).

Notwithstanding the above, the conversion of the foreign judgment is generally carried out by the French bailiffs in charge of the enforcement of the decision.

The award of contractual or statutory interest contained in the foreign judgment may also be recognised in France, unless the defendant demonstrates a disproportion that would violate French international public policy. On the other hand, the enforcing court also has the option of awarding interest on arrears, which is then governed by the law of the forum (eg, French law) and begins on the date of the exequatur of the foreign judgment.

Law stated - 24 July 2023

Security

Is there a right to appeal from a judgment recognising or enforcing a foreign judgment? If so, what procedures, if any, are available to ensure the judgment will be enforceable against the defendant if and when it is affirmed?

Judgments issued by an EU member state are automatically recognised and enforceable in the other member states without the need to initiate proceedings to do so. However, the Brussels I Recast Regulation provides that any interested party may apply for the refusal of recognition or enforcement of an EU judgment. Pursuant to article 49 of the Regulation, both parties may appeal against the decision, granting such application for refusal of recognition or enforcement of the foreign judgment.

Under French domestic law, exequatur judgments may be appealed similarly to any other first instance judgment within one month of the notification of the decision. In the case that the appealing party is domiciled abroad, this delay is extended to three months.

Under French law, first instance decisions are, as a general rule, provisionally enforceable, meaning that the judgment creditor may take enforcement measures upon service of the exequatur order to the other party. By way of exception, French courts may set aside the provisional enforceability of the exequatur order at the request of a party, if they consider that provisional enforcement is not appropriate under the circumstances of the case.

If an appeal is lodged against the exequatur order, the party who has been denied provisional enforceability may request that such provisional enforceability be reinstated or, alternatively, that financial guarantees be provided by the debtor.

Law stated - 24 July 2023

Enforcement And Pitfalls

Enforcement process

Once a foreign judgment is recognised, what is the process for enforcing it in your jurisdiction?

The enforcement measures will be governed by French domestic law and can be implemented as soon as the exequatur order is notified to the debtor.

By way of exception, pursuant to Brussels I Recast Regulation, EU judgments rendered in a member state and enforceable there are deemed to be immediately enforceable in France without the need for any formality or exequatur order.

Regarding the process of enforcement, the creditor can directly instruct bailiffs to initiate enforcement measures against the debtors’ movable assets located in France, such as money held in the debtor’s bank accounts, company shares or monies owed to the debtor by its own debtors. The creditor may also file an application form to the relevant land registry to register a security over the debtor’s real estate.

The duration of the enforcement process will depend on the type of asset seized (eg, an attachment on a bank account will be much faster than the seizure and sale of real estate property).

The enforcement measure can be challenged before the enforcement judge. Unless otherwise decided by the judge, the effect of the enforcement measure is suspended until the end of the challenge procedure. The debtor must demonstrate that the enforcement measure would lead to manifestly excessive consequences. The decision of the enforcement judge can be appealed. In addition, the debtor may claim damages in the event of an abusive seizure, if they can demonstrate that the seizure was conducted with the sole purpose of harming the debtor.

Law stated - 24 July 2023

Pitfalls

What are the most common pitfalls in seeking recognition or enforcement of a foreign judgment in your jurisdiction?

No provision makes recognition and enforcement conditional on the judgment being final in its country of origin. The absence of this requirement can lead to complications where the judgment is enforced in France but overturned on appeal in its country of origin.

In addition, even if enforcement of judgments in France is facilitated by numerous judicial cooperation tools, such enforcement can be deprived of effect if the creditor is unable to identify and locate the debtor’s assets. Some European instruments, such as the European Small Claims Procedure ( Regulation (EC) No. 861/2007 ), the European order for payment procedure ( Regulation (EC) No. 1896/2006 ) and the European Account Preservation Order procedure ( Regulation (EU) No. 655/2014 ) were passed to facilitate the effective enforcement of EU judgments and the recovery of claims in civil and commercial matters. However, these regulations only apply to disputes with a connection with the EU (eg, the domicile or bank account of one of the parties is located within the EU).

Law stated - 24 July 2023

Update And Trends

Hot topics

Are there any emerging trends or hot topics in foreign judgment enforcement in your jurisdiction?

The question of whether to continue to have Russian judgments recognised and enforced has been one of the hot topics since the start of the conflict between Russia and Ukraine. Apart from the uncertainties and difficulties concerning sanctions, there are currently no laws or regulations prohibiting the exequatur of Russian judgments on French territory. Thus, in theory, Russian judgments should be subject to the same international legality review as a judgment issued by another foreign court.

However, when examining the international legality of a Russian judgment, the enforcing court may, given the geopolitical context, be inclined to review more scrupulously the circumstances of the case and the Russian procedure that led to the foreign judgment, to check that there is no conflict with international public policy.

In principle, the fact that the Russian court disregarded choice of forum clauses in which the parties agreed to have their disputes resolved by arbitration (or the courts of a jurisdiction other than Russia) cannot in itself justify a refusal to grant exequatur, as this criterion is outside the list of conditions of international legality that must be examined by the exequatur judge according to well-established French case law.

However, it can be assumed that exequatur could be refused in cases where a party can establish the existence of fraud (for example, if the Russian court is seized while arbitration proceedings are being conducted in parallel between the same parties pursuant to an arbitration clause, and the Russian court deliberately refuses to decline jurisdiction due to the geopolitical situation). The French Supreme Court very recently ruled on a similar point (although the case did not involve Russian parties), confirming the refusal of exequatur of an Albanian judgment obtained in fraud of arbitration (17 May 2023, docket No. 21-18.406).

Law stated - 24 July 2023

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