As of the 1st of July 2025, the UK became a party to the Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters 2019 (Hague Convention 2019). This marks a significant development in the landscape of cross-border dispute resolution, providing businesses and individuals with greater certainty that judgements can be recognised and enforced in another.

The Hague Convention 2019 supplements the 2005 Hague Convention on Choice of Court Agreements. While the 2005 framework focused on the enforcement of judgments arising from exclusive jurisdiction clauses, the 2019 Convention goes much further. It creates a wider and more flexible system, covering judgements where jurisdiction was based on a broader set of connections between the dispute, the parties, and the court of origin.

In effect, the Hague Convention 2019 makes it easier to enforce a far greater range of judgements internationally, reducing the need for complex reliance on bilateral treaties or local enforcement laws. 

Where does the Convention apply? 

Currently, the Convention is in force in 30 contracting states – including all 27 EU member states, the UK, Ukraine, and Uruguay. It is scheduled to come into effect in Albania, Andorra and Montenegro in 2026. Other jurisdictions – including the United States, Russia, Israel, and Costa Rica – have signed but not yet ratified.

For now, the most immediate impact is in respect of UK-EU and UK-Ukraine judgement enforcement. This is a welcome development, particularly in the post-Brexit context, where the recognition and enforcement of judgements between the UK and the EU had become more fragmented.

When does it apply?

The Hague Convention 2019 applies to final civil and commercial judgements (including both money and non-money judgements, as well as costs orders), the proceedings were issued on or after the 1^st of July 2025.

However, it does not extend to:

• Interim measures such as freezing injunctions
• Certain areas of law, including insolvency, defamation, privacy, intellectual property, and some competition matters

Jurisdictional gateways under Article 5 

A judgement will fall within the scope of the Hague Convention 2019 where the court of origin had jurisdiction based on one of several defined connections. Key examples include:

• Jurisdiction based on a non-exclusive or asymmetric jurisdiction clause
• In tort claims, where the harmful act occurred in the state of the court of origin
• In contract claims, where the relevant obligation was to be performed in that state
• Where the defendant was habitually resident or had its principal place of business in the state of the court of origin
• Where the dispute related to the activities of a branch, agency or establishment situated there
• Where the defendant submitted to jurisdiction by consent or by arguing the merits without contesting jurisdiction

The Convention also contains tailored rules for disputes concerning interests in land, trusts, and consumer matters.

Practical impact for businesses and litigants 

For UK businesses engaged in cross-border trade, the Hague Convention 2019 brings greater certainty and efficiency. Parties can pursue litigation in contracting states with more confidence that a favourable judgement will be enforceable abroad without lengthy or unpredictable procedures.

While arbitration remains an important tool for international dispute resolution, the Hague Convention 2019 provides a much-needed counterpart for court litigation – particularly valuable in commercial relationships that do not rely on arbitration clauses.

With more jurisdictions expected to ratify the Convention in the coming years, the reach and significance of the Hague Convention 2019 will continue to grow. For now, its entry into force in the UK represents a major step forward in cross-border legal cooperation and a practical benefit for parties seeking to enforce civil and commercial judgements internationally.

Alternative funding options 

Litigation can be expensive, particularly when international enforcement is involved. However, the improved certainty brought by the Hague Convention 2019 makes disputes more attractive to funders and insurers. As a result, claimants now have a broader range of alternative funding methods available to them, providing access to justice and reducing the risk of pursuing high-value or complex international claims.

These methods include: 

Third-party litigation funding – One of the most established models is third-party funding, where a commercial funder pays the legal costs of a claim in exchange for a share of any recovery. The claimant bears no financial risk if the case is unsuccessful. With the Convention making enforcement more straightforward, funders are more confident in supporting cross-border claims, particularly those involving the UK and EU.

After the Event Insurance – ATE insurance is another tool that mitigates risk. Taken out after a dispute has arisen, it covers the claimant’s liability for the opponent’s costs if the claim fails. Premiums are often contingent on success, meaning no upfront cost. ATE is frequently used alongside litigation funding, making a case more appealing to funders by protecting against downside risk.

Damages Based Arrangements (DBA) – A damages based agreement, also known as a contingency fee agreement, is a type of arrangement made between a client and a solicitor in which the solicitor agrees to fund their case and share the risk of litigation. In return, the solicitor will be paid a percentage sum of the damages recovered as long as the client’s case is successful.

How can Annecto Legal assist? 

Navigating cross-border disputes can be daunting, even with the greater certainty brought by the Hague Convention 2019. Success depends not only on the strength of the legal claim but also on securing the right funding and risk management strategy. This is where Annecto Legal can provide real support.

We work with businesses and individuals to identify the most appropriate funding options for their circumstances. Thanks to our established relationships in the funding and insurance markets, we can connect clients with trusted providers who understand the challenges of cross-border litigation and enforcement.

Annecto Legal enables clients to pursue international claims with confidence and maintain control of their resources. For more information, get in touch with an expert member of our team to find out which litigation cover is the right litigation funding option for you to reduce your commercial litigation costs.