In many cases, a decision may not be enforced in the country where it was issued. A typical example is when a Hungarian court orders a debtor to pay, but the debtor's enforceable assets are located abroad and the claim must be enforced there. The reverse situation is also common: enforcement proceedings must be initiated in Hungary on the basis of a foreign judgment.
The way foreign judgments are enforced depends on the source of law applicable to the case. In the first instance, it should be considered whether the case is governed by a directly applicable EU regulation or international convention. If so, these rules will determine the enforcement regime. If not, the Hungarian rules of private international law and enforcement apply.
Direct implementation
The enforcement of judgments in civil and commercial matters between the Member States of the European Union is governed in principle by the Brussels Ia Regulation. One of the most important innovations of the Regulation is that a judgment given in one Member State and enforceable in another Member State can be enforced in another Member State without the need for a declaration of enforceability.
This means that, for example, if a Hungarian court makes a final enforceable decision on a monetary claim and the debtor's assets are located in Poland, the decision can be enforced in Poland without a separate exequatur procedure. However, the specific enforcement action is always governed by the procedural rules of the state where enforcement is sought.
A similar logic applies to the European order for payment. It is a quick and simple way to enforce overdue cross-border claims. The enforceability of a European order for payment allows enforcement to be sought in the Member State where the defendant has enforceable assets, without any special recognition or enforcement procedure.
However, it is important to note that the Brussels Ia Regulation does not apply to all types of cases. For some cases, such as maintenance obligations, different EU rules apply. It is therefore necessary to check in each case which legal source applies to the specific decision before enforcement is launched.
The exequatur procedure
If no EU or international rule allowing direct enforcement applies to the enforcement of the foreign judgment, the need for a domestic declaration of enforceability may arise.
This legal solution is called exequatur. By exequatur we mean the procedure for or the decision declaring a foreign judgment enforceable domestically. The idea is that the foreign judgment should have the legal effect in the host State of allowing enforcement proceedings to be brought.
It is important to note, however, that not all decisions taken outside the EU automatically follow the same procedure. There may be specific rules on recognition and enforcement in an international convention with a particular State. If there is no such rule, it must be examined under Hungarian law whether the foreign judgment can be recognised and declared enforceable in Hungary.
