Contributed By Baker & Partners
It is important to understand the debtor’s assets within the jurisdiction against which the creditor might seek to enforce its judgment.
As discussed below, disclosure orders may be obtained from the court to support enforcement of a judgment. If it is necessary to obtain a freezing order to protect assets, accompanying disclosure orders will also be made which may require a defendant to give disclosure of their assets held worldwide. It is common practice for banks or financial institutions to be joined as parties to the freezing orders as a “Party Cited”, against whom disclosure orders will also be made in order for them to be compelled to give disclosure of the defendant’s assets. The Party Cited will be required to maintain the freeze on any identified accounts pending further order of the court.
Disclosure orders may also be sought against third parties, such as search orders and Norwich Pharmacal orders.
As a general rule, pre-action disclosure is not available in Jersey. Norwich Pharmacal orders, which require a third party to provide disclosure, are a useful tool when gathering information before issuing proceedings against the defendant debtor. In order to obtain a Norwich Pharmacal order, the plaintiff will need to show that:
Identifying a debtor’s assets in Jersey can be difficult due to banks and trustees, etc, owing duties of confidentiality to their clients and/or beneficiaries. As one might expect for a mature and well-regulated offshore finance centre, beneficial ownership information is collated but not always available to the public.
However, the following registers are available from which information may be gathered.
Enquiry agents in Jersey may be instructed to carry out a lawful investigation to identify assets or further information and can prepare a report on their findings.
The following types of judgment are available in Jersey:
Money awards and injunctive orders determine parties’ rights and are directly enforceable in Jersey. Declaratory awards are typically declaratory of rights and so enforcement is not included in the relief. However, if a person acts in a manner contrary to the declaration, the injured party may have a cause of action against that person.
In Jersey, a claim is only formally initiated once the first procedural hearing takes place on a Friday before the Royal Court after service upon the defendant. The defendant to the action is summonsed to appear at that hearing to indicate whether they will defend the claim or submit to judgment or indicate that they will challenge the court’s jurisdiction. If a defendant does not appear, a plaintiff may seek default judgment.
If the defendant submits to judgment, or does not appear, the process of obtaining a judgment for a sum of money which may be enforced can be very swift.
Even where the defendant indicates that it will defend the action, in clear cases a plaintiff may seek summary judgment at an interlocutory stage of the proceedings (or the defendant may seek to strike out the claim) which would dispose of the claim. However, in most cases a judgment is usually obtained after a full trial on the merits. The length of time it will take for proceedings to get to full trial will depend upon the number of parties and complexity of issues in the proceedings.
That said, depending upon the circumstances, an expedited timetable to trial can be obtained, for example if the relief sought is a standalone disclosure order post judgment.
Direct Enforcement
A judgment for a money award from the Royal Court will usually include authority to sell or realise assets, or an arrest on wages. After an Act of Court confirming the judgment of the Royal Court has been handed down, the judgment creditor will instruct the Viscount (the Royal Court’s Executive Officer) to enforce its terms.
A fee scale is charged by the Viscount’s Department of up to GBP240. When instructing the Viscount, the judgment creditor will usually inform the Viscount if the creditor is aware of any assets owned by the debtor. The Viscount has the power to arrest, uplift and sell the debtor’s movable property (such as goods, money, investments and wages).
A judgment creditor may seek to register the judgment debt against Jersey immovable property owned by the debtor as a “judicial hypothec” and thereby have the debt secured against an asset of the debtor. Thereafter the creditor may apply to enforce their security by way of désastre or dégrèvement insolvency procedures.
A judgment creditor may also apply to place a caveat against the debtor’s immovable property which would prevent any sale. Caveats usually last for six months but may be renewed.
Indirect Enforcement
If further active steps are required, a judgment creditor might consider the following steps:
Insolvency Proceedings
The most aggressive response available to a judgment creditor is to institute insolvency proceedings such as the following.
Due to the different implications of each insolvency regime, a creditor should carefully consider which route is most appropriate. A creditor should carefully consider what their likely recovery would be in an insolvency of the debtor, particularly if the debt is unsecured. It will therefore be necessary to gather as much information as possible before making a decision to implement insolvency proceedings.
One factor to consider is the cost, as the Viscount (appointed to administer a désastre) may claim up to 10% of the assets collected, plus 2.5% of the assets paid out. Another is control: a creditor is able to choose a liquidator (who would be appointed to administer a creditors’ winding up) to be put forward for appointment by the Court. Both liquidators and the Viscount have the ability to investigate and apply to the court to challenge certain transactions entered into by a debtor.
The costs and length of time to enforce a domestic judgment will depend upon a number of factors including whether the defendant co-operates with the Viscount or whether there is a dispute as to the ownership of an asset against which the creditor seeks to enforce.
The creditor ought to collate as much information as possible on the debtor, the debtor’s assets and the debtor’s other creditors so that the creditor may make an informed decision on which route or routes to pursue.
As part of the investigation process, a creditor may decide to seek disclosure orders from the Court (see 2.4 Post-Judgment Procedures for Determining Defendants’ Assets). Depending upon whether the debtor challenges or otherwise resists the application, this process may take some time. In addition to funding the legal costs for the application, the creditor may also, depending upon the type of disclosure orders sought, be required to give a cross undertaking in damages (if the disclosure order is part of a wider freezing order) or pay legal costs of the disclosing party if the disclosure is sought from a third party (for example a Norwich Pharmacal order).
Some preservation steps, such as registering a judgment against a property or lodging a caveat preventing a sale of a property are straightforward and can be a cost-efficient way to proceed if the debtor holds Jersey immovable property. However, if that is not the case, preserving intangible assets will likely involve a court application which naturally involves expense in preparing and attending the application, the court fees, and dealing with any response by the defendant.
If the creditor wishes to instigate insolvency proceedings, the officer of the court appointed to conduct the insolvency (whether that is the Viscount of the Royal Court in the case of a désastre, or a liquidator in insolvency procedures under the Companies (Jersey) Law 1991 (as amended)) may require an indemnity from the creditor for costs likely to be incurred or require to be put in funds before the application is made.
A creditor can instigate proceedings seeking post-judgment disclosure orders of the debtor’s assets.
Such proceedings are issued by an Order of Justice which sets out the relief sought and basis for it. In the case of post-judgment disclosure orders, the creditor should seek an expedited final hearing of the issues because the creditor is merely seeking to ensure enforcement of a judgment already obtained.
Where there is a risk of dissipation, the plaintiff may also seek a freezing order. Ex parte injunctions may only be granted by the Bailiff or Deputy Bailiff (judges of the Royal Court), and the Order of Justice must be supported by detailed affidavit evidence. The test for obtaining a post-judgment freezing order is lower than if the creditor were to apply pre-judgment. Once an ex parte injunction is ordered, an inter partes hearing will be listed at a return date at which the defendant may seek to vary or lift the orders made.
Post-judgment disclosure orders may also be sought against third parties to confirm or identify the extent and location of the defendant’s assets.
The debtor may seek to challenge the judgment itself as well as or instead of the method of enforcement.
The main ways a debtor may challenge the judgment itself are:
If the judgment has been obtained by default, the procedural rules in Jersey allow a defendant to seek to set aside a default judgment.
In practice however the scope to challenge a default judgment itself will be limited because most applications are dealt with at a hearing rather than on the papers and so the scope for any procedural irregularity is usually corrected before the enforcement stage.
As to challenging methods of enforcement, a debtor may assert that they do not own the asset against which enforcement is sought. Some assets are protected from being arrested for sale, such as tools of trade.
Declaratory judgments per se may not be enforced, but where a person acts in a manner contrary to the declaration, causing damage, a cause of action may be brought against that person.
In Jersey, judgments are valid for ten years. Enforcement actions must therefore be started within ten years of the date of the judgment.
All orders of the courts are kept by the Judicial Greffier. They are not available to the general public, but as mentioned above, a request may be made to ascertain whether a party has been involved in any proceedings before the court. The court has issued a Practice Direction concerning how to make an application for access to the court file.
Most judgments, save for those which the court has determined will not to be published, are published on the Jersey Legal Information Board website and are publicly available.
Jersey is a self-governing British Crown Dependency. It is not party to any international treaties or conventions governing the enforcement of foreign judgments. The States of Jersey has passed the Judgment (Reciprocal Enforcement) (Jersey) Law 1960 which allows for some foreign judgments to be registered.
The Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters has not been extended to Jersey.
There are two different regimes used to enforce foreign judgments. Some foreign judgments may be registered in Jersey and then enforced (Registration Method). For all other judgments, fresh proceedings must be started in Jersey in order to obtain a Jersey judgment which might then be enforced (Customary Method).
Registration Method
The Registration Method applies to foreign judgments which fall within the narrow parameters of the Judgments (Reciprocal Enforcement) (Jersey) Law 1960. The Registration Method only applies to certain judgments issued from five British jurisdictions, as explained below.
Customary Method
If the foreign judgment does not fall within those narrow parameters, fresh proceedings must be issued as a matter of customary law. The Order of Justice will plead that the foreign judgment represents a final determination of the merits of the case as a matter of the applicable foreign law which should be recognised as a matter of comity.
In order to be enforced in Jersey, either under the Registration Method or the Customary Method, the foreign judgment must be final and conclusion, and for a sum for a liquidated sum of money, which is not in respect of taxes, fines, penalties or other fiscal liability, and which has not been wholly satisfied. The judgment cannot be contrary to public policy in Jersey.
If the foreign judgment does not fall within these requirements, it cannot be enforced in Jersey.
Under the Registration Method, the foreign judgment must be capable of being enforced in the original jurisdiction.
Under the Registration Method, a judgment creditor has six years to register it from the date of the judgment. Under the Customary Method, there does not appear to be any date by which a foreign judgment may be enforced. It is important to note however that if a foreign judgment falls within the scope of the Judgments (Reciprocal Enforcement) Law 1960, the judgment creditor must apply for registration: the Customary Method is not available to a judgment creditor.
It should be noted that the Royal Court retains a discretion to enforce a non-money judgment under the Customary Method.
As noted in 3.2 Variations in Approach to Enforcement of Foreign Judgments, there are two methods of enforcing foreign judgments.
Registration Method
Pursuant to the terms of the Judgments (Reciprocal Enforcement) Law 1960 and the Judgments (Reciprocal Enforcement) (Jersey) Act 1973, judgments from the superior courts of five jurisdictions may be submitted to the court to be registered. Those jurisdictions and courts are as follows.
If a judgment is issued by one of these courts on appeal from a court which is not listed (ie, an inferior court), that judgment may not be registered and so must be enforced under the Customary Method. However, the same is not true for a judgment which has been transferred to a superior court. For example, if a judgment of the County Court of England and Wales is transferred to the High Court, that High Court judgment may then be registered in Jersey.
In order to have the foreign judgment registered, the judgment creditor must make a written application by letter to the Judicial Greffier. This may be done on an ex parte basis. The Judicial Greffier is the clerk of the Royal Court but also exercises some judicial functions.
The letter must be accompanied by an affidavit which provides evidence to the Judicial Greffier that the requirements of the Judgment (Reciprocal Enforcement) (Jersey) Law 1960 have been met. The affidavit must also exhibit a certified copy of the foreign judgment to be registered, which has been issued by the foreign superior court, on which the seal of the court has been imprinted. In the unlikely event that the judgment is not in England, a certified translation into English will be required.
The Judicial Greffier may process the application on the papers.
Once registered, notice must be given to the debtor judgment. Notice must be served by personal service by the Viscount (the executive officer of the Royal Court) unless the court orders otherwise. If the judgment debtor is outside Jersey service must be completed in accordance with the Service of Process Rules 2019, although leave to serve outside Jersey is not required.
The notice which shall be served on the judgment debtor must comply with the format set out in the Law. It shall include:
An application for leave to serve out of the jurisdiction must also be made by written letter application to the Judicial Greffier or Master of the Royal Court, supported by detailed affidavit complying with the requirements of the Service of Process Rules 2019.
The time for applying to set aside the registration is determined by the Judicial Greffier at her discretion. Where the judgment debtor is in Jersey, this period tends to be short (one-to-two weeks). Where the judgment debtor is located outside Jersey, the Judicial Greffier will recognise that it will take longer to effect service and then instruct a Jersey Advocate so will ensure that a reasonable period (such as a month) will be applied.
During the period of time set by the Judicial Greffier for applying to set aside the registration, the registered judgment may not be enforced.
Once it may be enforced, the judgment creditor shall instruct the Viscount to enforce the judgment. As part of the letter of instruction, the judgment creditor must prove to the Viscount that the notice of registration has been served upon the judgment debtor.
Customary Method
If a foreign judgment does not fall within the Law, the applicant must issue fresh proceedings by pleading out the claim for recognition in an Order of Justice. The Order of Justice will assert that that foreign judgment represents a final determination of the merits of the underlying dispute and ought to be recognised by the Jersey Court by way of comity. It is common to annex the foreign judgment to the Order of Justice.
The Order of Justice must be served upon the defendant, the foreign judgment debtor. If the defendant is in Jersey, the Viscount will personally serve the Order of Justice. If the defendant is not in Jersey, the judgment creditor will have to apply on an ex parte for leave to serve out of the jurisdiction in compliance with the Service of Process Rules 2019. This is done by written application to the Master of the Royal Court, supported by a detailed affidavit providing the information required by the Service of Process Rules.
The Order of Justice is served together with a summons which gives notice to the defendant of the initial procedural hearing at which the defendant must give notice of whether they will submit to judgment, defend the proceedings or challenge the Court’s jurisdiction.
At the initial procedural hearing, which takes place on a Friday afternoon, if the defendant does not appear, the plaintiff may apply for default judgment.
If the defendant indicates that they wish to defend the claim for enforcement, the proceedings will be placed on the Pending List. In these circumstances, the plaintiff will usually make an application for summary judgment during the interlocutory phase. The plaintiff will need to show that that the defendant has no real prospect of successfully defending the claim for enforcement, and that there is no other compelling reason why the proceedings should proceed to full trial. If the defendant survives an application for summary judgment, the proceedings will advance to trial.
The costs and time taken under each procedure will greatly depend upon whether the original judgment debtor challenges the steps taken by the plaintiff.
The Registration Method, absent an application to set aside registration, will usually be dealt with swiftly by the Judicial Greffier (within a week, depending upon her other commitments). If the application is not prepared in compliance with the requirements of the Law, the Judicial Greffier may ask supplemental questions or even call the applicant to a hearing. Enforcement thereafter will depend upon the location of the judgment debtor and how easily the assets may be realised. Because the initial application is done on an ex parte basis, the costs are usually relatively low.
The Customary Method may take considerably longer if leave to serve out is required, if the defendant challenges jurisdiction, if the defendant resists judgment. The costs will depend upon how long the process takes. There is also the risk of costs orders being made against the plaintiff if the defendant successfully resists any steps taken by the plaintiff.
Registration Method
As mentioned in 3.5 Costs and Time Taken to Enforce Foreign Judgments, the application for registration is made on an ex parte basis. Therefore, the first chance for the debtor to challenge enforcement is to make an application to set aside the registration. The grounds that might be raised are:
Customary Method
At an application for summary judgment, the defendant to enforcement proceedings may assert that:
Under either method, the Royal Court will deem that the foreign court had jurisdiction over the defendant in the underlying proceedings if, in the case of an in personam claim:
If the subject matter of the foreign proceedings concerned immovable property situated in the foreign court’s jurisdiction or an in rem action which relates to movable property is located in the foreign court’s jurisdiction, the Royal Court will also deem that the foreign court had jurisdiction over the debtor.
A judgment debtor may challenge enforcement if they are entitled to immunity.
The enforcement of arbitral awards in Jersey is governed by the Arbitration (Jersey) Law 1998 (the “Arbitration Law”).
The Arbitration Law establishes two regimes depending upon whether the New York Convention applies (the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958) (Part 4 of the Arbitration Law) or the 1923 Protocol on Arbitration Clauses or the 1927 Geneva Convention (Part 3 of the Arbitration Law).
The Arbitration Law provides for the enforcement of arbitral awards by ex parte Representation to the Court or by issue of fresh proceedings (see the Customary Method explained in 3. Foreign Judgments).
Awards from the International Centre for the Settlement of Investment Disputes may be enforced in Jersey further to the Arbitration (International Investment Disputes) (Jersey) Order 1979. No procedure has been established for these awards, but our view is that an applicant would need to issue a Representation to the Court, supported by affidavit, to seek a court order allowing enforcement.
Arbitration awards are, subject to the exceptions listed below, enforceable in Jersey.
The Arbitration Law states that the enforcement of a New York Convention award shall not be refused unless it falls within the categories set out in 4.6 Challenging Enforcement of Arbitral Awards. The emphasis is different for Protocol and Geneva Convention awards in that permission needs to be obtained from the court before it may be enforced.
In order to apply to enforce an arbitral award, the applicant can either issue an ex parte Representation or issue fresh proceedings, as explained in 3. Foreign Judgments under the Customary Method.
In the case of a Protocol and Geneva Convention award, the applicant must provide an affidavit exhibiting the original award, or an authenticated copy of it, as well as evidence proving that the award has become final, and such evidence to show that the award has been made further to the arbitration agreement, by a tribunal provided for in the agreement or by consent of the parties, made in compliance with the law of the arbitration, and may be enforced as a matter of Jersey law and was made in respect of a dispute which, as a matter of Jersey law, may be referred to arbitration.
In the case of a New York Convention award, the applicant must provide an affidavit exhibiting a duly authenticated original award or a duly certified copy of it; the original arbitration agreement or a duly certified copy of it and, where applicable, a certified translation of the award and/or agreement into English.
Whether the applicant is seeking to enforce a New York Convention award or a Protocol and Geneva Convention award, the costs and time taken will largely depend upon whether the defendant challenges the enforcement action.
If the applicant issues an ex parte Representation supported by an affidavit which provides to the court all the necessary information and the defendant does not then seek to challenge the enforcement action, the order may be obtained for the costs of preparing the application. A court fee will be applicable. Such Representations may be listed to be heard each Friday by the Royal Court.
If an applicant issues proceedings under the Customary Method, the same time period and costs will apply.
Once at the enforcement stage, if enforcing against assets in Jersey, the applicant’s Jersey Advocates will need to instruct the Viscount to enforce the award. The Viscount will apply a standard scale fee.
In relation to Protocol and Geneva Convention awards, there are positive factors that must be proved by the applicant. The Arbitration Law also specifies factors which, if present, mean that the award may not be enforced.
In order for the court to grant permission for an arbitral award under the Protocol and Geneva Convention to be enforced, the arbitral award must:
Enforcement in Jersey must not be contrary to public policy or the law of Jersey.
In addition, arbitral Awards under the Protocol and Geneva Convention are not enforceable if:
The court may either refuse to allow enforcement or adjourn enforcement to allow the defendant sufficient time to annul the award.
Enforcement of an arbitral award to which the New York Convention applies shall not be refused unless:
In addition, a New York Convention award will not be enforced if the award has been made in respect of a matter which is not capable of settlement by arbitration and it would be contrary to public policy to enforce the award.
In addition to the reasons listed above regarding the categories of arbitral awards which may not be enforced in Jersey, the defendant may challenge the enforcement itself against assets on the basis that they do not own the assets.
A defendant has recently sought to resist enforcement on the grounds that it would be contrary to policy and law in Jersey when there was a possibility of payment and the award would have contravened sanctions. However, that challenge was not successful (RTI Limited v OWH SE iL [2025]JCA327). Any refusal to enforce on the grounds of public policy will be approached with “extreme caution”.
A defendant may also assert that the applicant does not have standing to enforce the award.
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