Global Enforcement and Asset Recovery Series: Recognition and Enforcement of Judgments and Arbitral Awards
Getting a judgment or award does not automatically mean getting paid. Particularly where judgment or award debtors are in less familiar jurisdictions, there can be a strong incentive to delay or avoid payment. From the perspective of the debtor, there is little difference between being in default under a contract and being in default under a judgment or award. In such cases, obtaining judgment is simply the first step toward recovery. It is critical, therefore, for claimants and their legal representatives to consider recognition and enforcement at the outset of proceedings to ensure that the judgment can be monetized effectively.
Frequently, effective enforcement will take place not where the debtor is located, but where their assets are. Before issuing proceedings, claimants should identify whether the defendant has sufficient assets to satisfy a judgment and, if so, whether such assets are available for the purposes of enforcement. In this regard, claimants should be aware that in a number of jurisdictions, they can seek a wide range of injunctive relief that can help to: (i) identify and locate the defendant's assets; and (ii) prevent the defendant from moving, dissipating, or concealing their assets. Certain forms of relief are available before judgment is handed down, so this can be a powerful tool for claimants in identifying and preserving assets for the purposes of enforcement.These interim measures will be the focus of articles later in the series.
It is often the case that debtors hold assets across multiple jurisdictions, adding a further layer of complexity to the recovery process. This paper aims to simplify this issue and summarizes some of the key enforcement considerations and procedures in several major jurisdictions.
