Enforcing Foreign Judgments on Monetary Claims in Germany: Recognition, Enforcement, and Practical Implementation

As global economic activity continues to expand, it has become increasingly common for businesses and individuals to hold claims against debtors residing or based abroad. Likewise, a creditor may already have obtained a court judgment in a foreign country, for example, because the debtor maintains assets or a business presence there, or because the relevant contractual relationship had to be settled in the foreign courts. Such foreign judgments, which order the payment of a sum of money, are then to be enforced in Germany. The key question is: Under what conditions can a foreign judgment be recognized and enforced in Germany? What are the procedural steps, and which legal instruments are available to creditors to effectively assert their claims?

This article provides a comprehensive overview of the recognition and enforcement of foreign judgments in Germany. We will examine the legal foundations, introduce the relevant European regulations and conventions, discuss requirements and procedures, and address the specifics of both EU judgments and judgments from non-EU countries. Finally, we will offer practical guidance on how creditors can best proceed in enforcing their claims in Germany and what kind of professional support they can expect from German attorneys.

Foundations of Recognizing and Enforcing Foreign Judgments in Germany

International Context of Recognition and Enforcement

International enforcement of judgments is a central aspect of private international law. While the enforcement of domestic judgments usually proceeds smoothly under clear statutory provisions, the enforcement of foreign judgments generally requires an examination and often a formal recognition by the competent German authorities. As a rule, Germany is prepared to recognize foreign judgments and grant them the same effect as domestic judgments, provided that certain minimum standards regarding jurisdiction, the right to be heard, and due process were observed abroad.

Statutory Bases for Recognition and Enforcement

The statutory provisions governing the recognition and enforcement of foreign judgments are mainly found in the German Code of Civil Procedure (ZPO) and in various international and European legal sources.

National Law: Sections 722 et seq. ZPO govern the declaration of enforceability of foreign judgments. Recognition, in the absence of overriding international treaties or European regulations, follows from Section 328 ZPO.

European Regulations: Within the European Union, the recognition and enforcement of civil and commercial judgments have been significantly simplified over the past decades. The Brussels Ia Regulation (EU Regulation No. 1215/2012) governs the recognition and enforcement of judgments within EU Member States. Similar provisions are found in the predecessor Brussels I Regulation and the European Enforcement Order Regulation (EEO).

International Agreements: Germany is a party to various bilateral and multilateral agreements, such as the Lugano Convention, which simplify the recognition and enforcement of judgments. If no such agreement applies, the general rules of Sections 722, 723 ZPO in conjunction with Section 328 ZPO are used.

Recognition of Judgments from EU Member States

The Brussels Ia Regulation (EuGVVO)

Since the Brussels Ia Regulation entered into force on January 10, 2015, it has become much easier to recognize and enforce a judgment from one EU Member State in another Member State. The key innovation is the abolition of the exequatur procedure. This means that a judgment issued by an EU Member State is automatically recognized in all other Member States without the need for a special recognition procedure.

Nevertheless, certain formalities must be fulfilled for actual enforcement. The creditor must present an authenticated copy of the foreign judgment and a certificate pursuant to Article 53 of the Brussels Ia Regulation to the competent German enforcement authority. This certificate is issued by the court of origin and serves as proof to German enforcement officials that the decision is enforceable.

Exceptions: Recognition may only be refused in exceptional cases, for instance if recognition would violate German public policy (ordre public) or if the debtor was not granted the right to be heard in the original proceedings. In practice, such refusals are rare. Mutual recognition of judicial decisions is the norm within the EU single market.

European Enforcement Order (EEO)

The European Enforcement Order (Regulation (EC) No. 805/2004) allows for the simplified enforcement of uncontested claims. Once the state of origin has certified a judgment as an EEO, it can be enforced in all other EU Member States without a separate declaration of enforceability.

The prerequisite is that the claim be uncontested, for example because the debtor never raised any objections. In such cases, enforcement is particularly straightforward, as there is no need for a separate enforcement procedure in the country of enforcement.

Recognition of Judgments from Non-EU Countries

Applicable Law

If a judgment originates from a non-EU country and no special agreement on recognition and enforcement exists with that country, German national law applies. Recognition is governed by Section 328 ZPO, and the declaration of enforceability by Sections 722, 723 ZPO.

In these cases, a separate judicial procedure in Germany is required to declare the foreign judgment enforceable. The creditor must file an application with the competent German court. The court will review whether the necessary legal conditions under German law are met.

Requirements under Section 328 ZPO

The recognition of foreign judgments in Germany is contingent upon certain requirements set out in Section 328 ZPO:

• International Jurisdiction of the Foreign Court: The foreign court must have had jurisdiction over the case according to German principles of international jurisdiction.
• Due Process: The debtor must have been given the opportunity to present a defense in the foreign proceedings, and the proceedings must have respected the debtor’s right to be heard.
• No Violation of German Ordre Public: The content of the foreign judgment must not violate fundamental principles of German law.
• No Incompatibility with Domestic Judgments: The foreign judgment must not conflict with a domestic judgment involving the same parties.

If these conditions are met, the foreign judgment will be declared enforceable.

Enforcement Procedure

Once declared enforceable, the foreign judgment can be enforced in Germany just like a domestic judgment. The creditor may use all standard enforcement measures available under German law. These include attaching bank accounts, seizing assets, auctioning real property, or compelling the debtor to provide a statement of assets. The choice of enforcement measure depends on the debtor’s financial situation.

Special Agreements and International Instruments

Lugano Convention

The Lugano Convention governs recognition and enforcement of judgments between the EU Member States and Norway, Iceland, and Switzerland. Similar in scope and purpose to EU regulations, it ensures that judgments from these countries can also be easily recognized and enforced in Germany.

The Hague Conventions

The Hague Conference on Private International Law has also produced conventions aimed at simplifying the mutual recognition and enforcement of judgments. The 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters seeks to establish uniform global standards.

Though not yet fully ratified by all relevant states, this Convention holds the potential to significantly advance the global harmonization of judgment enforcement. Until it is widely implemented, national laws and bilateral or multilateral treaties remain the primary means of enforcing foreign judgments.

Practical Guidance for Creditors

Preparation and Examination of the Foreign Judgment

Before attempting to enforce a foreign judgment in Germany, the creditor should carefully verify whether the conditions for recognition are met. Relevant considerations include whether the judgment originates from an EU Member State or a non-EU state, whether any special treaties apply, and whether the foreign proceedings met due process standards.

It is also crucial that the foreign judgment be final and binding. Judgments that are not final or are only provisionally enforceable may face obstacles in the recognition process.

Required Documents

The following documents are generally required by the German authorities for recognition and enforcement:

• Authenticated copy of the foreign judgment
• Official German translation of the judgment by a sworn translator
• Proof of the judgment’s finality and enforceability in the country of origin
• For EU judgments, the certificate under Article 53 Brussels Ia Regulation or a European Enforcement Order, if applicable

Time Considerations

Even though the recognition of EU judgments is now more straightforward, there can still be delays if the debtor raises objections or if the case is complex.

For judgments from non-EU countries, the recognition process may take longer due to the need for a separate court proceeding in Germany. Creditors should factor in potential delays when planning their enforcement strategy.

Costs

The costs of recognition and enforcement vary depending on the complexity of the case. Expenses include court fees, attorneys’ fees, translation costs, and expenses for enforcement measures.

If the creditor ultimately succeeds, these costs are generally borne by the debtor. However, it remains important to consider the debtor’s ability to pay. Retaining an attorney can help assess the economic viability of pursuing enforcement measures.

Enforcement Measures and Strategies

Once recognition or a declaration of enforceability has been obtained, the creditor can use any enforcement measures available under German law. These may include attaching bank accounts, seizing goods, auctioning real estate, or obtaining the debtor’s asset disclosure.

It is advisable to investigate the debtor’s assets in Germany beforehand to identify which enforcement measures are likely to be most effective. This may involve hiring investigators, using credit information agencies, or conducting lawyer-led research.

Legal Particularities and Potential Disputes

Public Policy (Ordre Public)

A common ground for challenging recognition is the public policy (ordre public) clause. The debtor may argue that recognition should be denied because the foreign judgment is fundamentally incompatible with German legal principles. In practice, this is rare. Most foreign judgments from jurisdictions with comparable procedural standards are compatible with German notions of due process.

Competing Proceedings and Parallel Judgments

If there is already a pending case or even a final domestic judgment on the same matter between the same parties in Germany, this may complicate recognition. Domestic judgments generally take precedence over foreign judgments. Each situation must be carefully examined to avoid conflicting outcomes or the duplication of proceedings.

Jurisdictional Issues for Non-EU Judgments

In the case of judgments from non-EU states, determining whether the foreign court had international jurisdiction according to German standards is of paramount importance. If the foreign court lacked international jurisdiction from a German perspective, the foreign judgment will not be recognized. This examination can be complex and may require extensive factual inquiries.

Future Developments in International Enforcement Law

International enforcement law is evolving. The EU continues to seek harmonization and simplification of recognition and enforcement rules. The 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments could, once widely adopted, bring global uniformity and predictability.

As these developments progress, enforcement of foreign judgments in Germany is likely to become even more streamlined. Additionally, digitalization will probably play an increasing role. Electronic court proceedings, online payment orders, and electronic apostilles are just a few examples of tools that might simplify cross-border enforcement in the future.

Conclusion and Recommendations

Enforcing foreign judgments on monetary claims in Germany is often feasible but requires careful examination of the legal framework. Within the EU, the Brussels Ia Regulation and the European Enforcement Order have made the process significantly easier. Creditors from EU Member States can have their judgments recognized and enforced in Germany with relative ease.

For judgments from non-EU countries, the situation is more complex. A formal recognition and enforceability procedure before a German court is generally required. However, with professional guidance and early assessment of the prerequisites, these judgments can also be successfully enforced in Germany.

Early legal consultation is crucial to identify possible hurdles and to develop appropriate strategies. This includes verifying the international jurisdiction of the foreign court, assessing the fairness of the foreign proceedings, and ensuring that the debtor has assets located in Germany.

Our Services for Foreign Clients in Debt Collection Matters in Germany

As a specialized law firm based in Frankfurt am Main, we assist foreign clients in enforcing their monetary claims in Germany. Our range of services includes:

• Examination of Foreign Judgments: We assess whether your foreign judgment is enforceable in Germany and help compile the necessary documents.
• Representation in Recognition and Enforcement Proceedings: We represent your interests before German courts and authorities to obtain a declaration of enforceability.
• Strategic Enforcement: We develop a tailored enforcement strategy, locate the debtor’s assets, and implement suitable enforcement measures.
• Settlement Negotiations: If appropriate, we conduct negotiations with the debtor to find amicable solutions and avoid protracted proceedings.
• Expert Advice Based on Extensive Experience: With many years of experience in international debt recovery, we can act efficiently, cost-effectively, and goal-oriented.

Please contact us if you have further questions or need assistance in enforcing foreign judgments in Germany. We will provide you with expert guidance and practical solutions tailored to your specific situation.