Meaning
International legal treaties facilitate the recognition and enforcement of judgments between countries that are not part of the same political union. The lugano convention operates primarily between the European Union and the European Free Trade Association members. It ensures that a ruling made in Switzerland is enforceable in France or Norway without a full retrial of the merits.
This treaty provides a predictable framework for businesses operating across these specific borders.
Judicial Jurisdiction
Specific articles determine which court has the power to hear a case based on the location of the defendant or the place of performance. Parties can also choose a specific forum through a written agreement in their contract. This choice of court is respected by all signatory states to prevent forum shopping.
Jurisdictional conflicts are resolved by looking at which court was seized first.
Enforcement Procedure
Standardized forms and simplified requirements allow a judgment creditor to move assets across borders to satisfy a debt. The local court in the country where enforcement is sought does not re-examine the facts of the original case. Only limited grounds for refusal exist such as a violation of the right to a fair trial or an existing judgment on the same matter.
Practical steps involve serving the judgment on the debtor and obtaining a certificate from the original court. This process is much faster than traditional diplomatic channels for enforcing foreign orders. Administrative costs stay low because the treaty removes the need for multiple legal teams in different countries.
Treaty Membership
Membership is open to states that are members of the European Union or the European Free Trade Association. Other states may join if all current members agree to their accession.
