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General framework

Domestic law

Which domestic laws and regulations govern the recognition and enforcement of foreign judgments in your jurisdiction?

As Luxembourg has a legal system based on the written law tradition – particularly the Napoleonic Code –  the legal sources of law must consider the recognition and enforcement of foreign judgments.

The sources of Luxembourg law are:

  • international treaties;
  • EU law;
  • the Constitution;
  • statutes and regulations; and
  • general principles of law.

The general regime of recognising and enforcing foreign judgments is set out in the New Code of Civil Procedure (NCPC), which applies to civil and commercial matters.

The NCPC not only sets out the general domestic regime of recognising and enforcing foreign judgments, but also the regimes subject to the application of international treaties, European law and specific Luxembourg regulations and rules of law.

The NCPC applies to all foreign judgments, regardless of their country of origin, in civil and commercial matters.

The NCPC applies to all jurisdictions to which no EU or bilateral conventions apply.

International conventions

Which international conventions and bilateral treaties relating to the recognition and enforcement of judgments apply in your jurisdiction?

Luxembourg has signed the following international and bilateral treaties relating to the recognition and enforcement of judgments, as set out in Article 679 of the NCPC:

  • the Brussels Convention of 27 September 1968 on jurisdiction and the enforcement of judgments in civil and commercial matters;
  • the Lugano Convention of 16 September 1988 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters;
  • the Convention of 29 July 1971 between the Grand Duchy of Luxembourg and the Republic of Austria on the recognition and enforcement of judgments in civil and commercial matters;
  • the Treaty of 24 November 1961 between Belgium, the Netherlands and Luxembourg on jurisdiction, bankruptcy and the validity and enforcement of judgments, arbitration awards and authentic instruments; and
  • the Hague Convention of 2 October 1973 on the recognition and enforcement of decisions relating to maintenance obligations.

Competent courts

Which courts are competent to hear cases on the recognition and enforcement of foreign judgments?

According to Article 21 of the NCPC, the Luxembourg district court is exclusively competent to hear cases on the recognition and enforcement of foreign judgments and is the only court entitled to give enforcement titles.

Distinction between recognition and enforcement

Is there a legal distinction between the recognition and enforcement of a judgment?

Based on EU Regulation 1215/2012 of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, which entered into force on 15 January 2015, Luxembourg law provides a legal distinction between the recognition and enforcement of a judgment.

In general, the recognition of a foreign judgment occurs when the court of one state accepts a judicial decision made by the court of a foreign state.

According to EU Regulation 1215/2012, a judgment given in a EU member state can be ‘recognised’ in another EU member state if no special procedures are required. However, ‘enforcement’ is the recognition and permission for a creditor to take coercive measures against a debtor directly on Luxembourg territory.

Under EU Regulation 1215/2012, a judgment given and enforceable in one EU member state can be enforced in another EU member state without any declaration of enforceability being required.

Ease of enforcement

In general, how easy is it to secure the recognition and enforcement of foreign judgments in your jurisdiction?

Regarding the ease of enforcement, the procedure to enforce a foreign judgment differs according to the judgment’s state of origin. The distinction between EU judgments, foreign judgments subject to an international treaty and foreign judgments not subject to an international treaty or EU law must be made.

If a foreign judgment does not originate from an EU member state and is not subject to an international treaty, the ordinary domestic proceeding applies and the foreign judgment will fall under Articles 678 of the NCPC and must be submitted to the exequatur formalities in order to have legal effect in Luxembourg.

Therefore, applicants must file a legal exequatur action before the district court of the jurisdiction where they intend to pursue the execution. The proceeding is introduced in conformity with the domestic law by summoning the defendant to the district court and is subject to all rules of written procedure. However, the court will not rule on the case but is confined to verify the following conditions:

  • The decision is enforceable in the country of origin.
  • The original judge had jurisdiction to make a decision according to Luxembourg private international law.
  • The original judge had jurisdiction to make a decision according to its own procedural law.
  • The foreign court has applied the law as designated by Luxembourg’s conflict of laws provisions.
  • The foreign procedure rules have been respected.
  • The defendant had proper notice of the proceedings.
  • The decision does not contravene any Luxembourg public policy rules.
  • The foreign decision must contain an order that can be executed.

If those conditions are met, the judge will grant the exequatur order and the claimant will give notice thereof to the defendant.

On the other hand, if the foreign judgment originates from an EU member state or is subject to an international treaty, the conditions for enforcement are significantly simplified.

There are several EU regulations that cover different matters, such as civil and commercial general matters, but also more particular matters such as matrimonial and parental responsibility and maintenance obligations.

Foreign judgments rendered in Europe that are subject to a treaty or EU law fall under Articles 679-685-2bis of the NCPC, which provide the simplified procedure of enforcement rules, as provided by EU Regulation 1215/2012, which replaced the initial EU Regulation 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

These judgments are recognised and immediately enforceable without any special procedure being required.

For foreign judgments rendered in a jurisdiction outside the European Union with which Luxembourg has concluded a bilateral or multilateral treaty for the reciprocal recognition and enforcement of foreign judgments, Article 679 of the NCPC provides a non-exhaustive list of conventions, such as the convention on jurisdiction and the enforcement of judgments in civil and commercial matters signed in Lugano on 30 October 2007.

These judgments must be submitted to simplified exequatur formalities to have legal effect in Luxembourg, consisting in filing an ex parte petition with the president of a district court who will grant an order if all of the conditions imposed by those treaties are respected.

Reform

Are any reforms to the framework on recognition and enforcement of judgments envisioned or underway?

There has been no big reform to the framework on the recognition and enforcement of judgments since EU Regulation 1215/2012 other than EU Regulation 655/2014 of 15 May 2014 establishing a European Account Preservation Order (EAPO) procedure to facilitate cross-border debt recovery in civil and commercial matters. This regulation came into force on 18 January 2017 and established an EU procedure that allows a creditor to obtain an EAPO in order to prevent the transfer or withdrawal of funds by a debtor that may endanger the subsequent credit enforcement.

Conditions for recognition and enforcement

Enforceable judgments

Which types of judgment (eg, monetary judgments, mandatory or prohibitory orders) are enforceable in your jurisdiction and which (if any) are explicitly excluded from recognition and enforcement (eg, default judgments, judgments granting punitive damages)?

Under EU Regulation 1215/2012 of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, only judgments on civil and commercial matters can be recognised and enforced.

The regulation explicitly excludes the following matters:

  • status or legal capacity of natural persons, rights in property arising out of a matrimonial relationship or out of a relationship deemed by the law applicable to such relationship to have comparable effects to marriage;
  • bankruptcy, proceedings relating to the winding up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings;
  • social security;
  • arbitration;
  • maintenance obligations arising from a family relationship, parentage, marriage or affinity; and
  • wills and succession, including maintenance obligations arising by reason of death.

How are foreign judgments subject to appeal treated?

According to Article 684 of the New Code of Civil Procedure (NCPC), the Superior Court of Justice must stay the proceedings if:

  • the foreign decision is subject to an appeal in the state of origin; or
  • the deadline to file an appeal in the state of origin has not yet expired.

The Superior Court of Justice may also make the execution of the decision subject to the lodging of a security which it determines.

During the appeal period as provided in Article 682 of the NCPC and until it is ruled on, only provisional measures can be taken against the property of the party against whom enforcement is sought.

The decision granting enforcement automatically entails the authorisation to carry out these measures.

Formal requirements

What are the formal and documentary requirements for recognition and enforcement of foreign judgments?

According to EU Regulation 1215/2012, parties wishing to invoke in Luxembourg a judgment given in another EU member state must provide:

  • a copy of the judgment in order to establish its authenticity; and
  • a certificate issued by the court of origin.

The Luxembourg court may request a translation or transliteration of the certificate. The court may also ask applicants to provide a translation of the judgment rendered in the state of origin if it is unable to proceed without such a translation.

Substantive requirements

What substantive requirements (if any) apply to the recognition and enforcement of foreign judgments? Are enforcing courts in your jurisdiction permitted to review the foreign judgment on the merits?

In order to be enforceable in Luxembourg, a judgment rendered in another state must be enforceable in its state of origin.

Luxembourg public policy sets out additional requirements such as compliance with due process and proper appearance in court.

Where the foreign judgment is not subject to an EU law or treaty, the general rules of Luxembourg law govern recognition and enforcement requirements.

The Luxembourg court will check whether:

  • the decision is enforceable in the country of origin;
  • the original judge had jurisdiction to make a decision according to Luxembourg private international law;
  • the original judge had jurisdiction to make a decision according to its own procedural law;
  • the foreign court has applied the law as designated by Luxembourg’s conflict of laws provisions;
  • the foreign procedure rules have been respected;
  • the defendant had proper notice of the proceedings;
  • the decision does not contravene any Luxembourg public policy rules; and
  • the foreign decision contains an order that can be executed.

Limitation period

What is the limitation period for enforcement of a foreign judgment?

There is no limitation period for proceedings to grant the recognition and enforcement of a foreign judgment. Luxembourg courts can enforce only foreign judgments which are enforceable in their country of origin.

Therefore, a timeframe for the recognition and enforcement of a foreign judgment could depend on the law applicable to the foreign judgment in its country of origin.      

Grounds for refusal

On what grounds can recognition and enforcement be refused?

According to EU Regulation 1215/2012, the recognition of a judgment may be refused if:

  • such recognition is manifestly contrary to Luxembourg public policy (ordre public);
  • it was given in default of appearance (ie, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable them to arrange their defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for them to do so);
  • it is irreconcilable with a judgment given between the same parties in the EU member state addressed;
  • it is irreconcilable with an earlier judgment given in another EU member state or in a third state involving the same cause of action and between the same parties, provided that the earlier judgment fulfils the conditions necessary for its recognition in the EU member state addressed; or
  • it conflicts with EU Regulation 1215/2012.

The enforcement of a judgment shall be refused where one of the grounds for refusal of the recognition of a judgment exist.

Service of process

To what extent does the enforcing court review the service of process in the original foreign proceedings?

According to Article 42 of EU Regulation 1215/2012, in order to have a foreign judgment recognised and enforced in Luxembourg, applicants must provide the competent district court with:

  • a copy of the judgment which satisfies the conditions necessary to establish its authenticity; and
  • the certificate using the form set out in Annex I of the regulation.

The competent district court may request a translation or transliteration of the certificate. The court may also ask applicants to provide a translation of the judgment rendered in the state of origin if it is unable to proceed without such a translation.

Those copies must be provided to the court clerk, who checks the authenticity of the documents.

Public policy

What public policy issues are considered in the court’s decision to grant recognition and enforcement? Is there any notable case law in this regard?

A decision is not recognised if its recognition is manifestly contrary to the public policy of the requested EU member state, particularly regarding its fundamental principles. The term ‘manifest’ suggests a desire to retain a restrictive definition of the public order. The judge of a requested state may invoke the concept of ‘public policy’ only in the event that the recognition or enforcement of the decision would unacceptably prejudice the judicial order of the requested state by undermining a fundamental principle. The infringement must constitute a manifest violation of a rule of law considered essential in the legal order of the requested state or of a right recognised as fundamental in that legal order (Court of Appeal, 30 June 2011).

Jurisdiction

What is the extent of the enforcing court’s power to review the personal and subject-matter jurisdiction of the foreign court that issued the judgment?

Under Luxembourg law, a Luxembourg district court cannot review the personal and subject-matter jurisdiction of the foreign court that issued the original judgment.

Luxembourg courts cannot interfere with the first judgment, except if the judgment compromises Luxembourg public policy.

According to Article 52 of EU Regulation 1215/2012, a judgment rendered in an EU member state may under no circumstances be reviewed as to its substance in that EU member state. Therefore, the Luxembourg courts have no power to review the substance of original judgments rendered in other EU member states.

Concurrent proceedings and conflicting judgments

How do the courts in your jurisdiction address applications for recognition and enforcement where there are concurrent proceedings (foreign or domestic) or conflicting judgments involving the same parties/dispute?

The recognition and enforcement of a foreign judgment may be refused where the foreign judgment is irreconcilable with concurrent proceedings or conflicting judgments involving the same parties or dispute.      

Where a Luxembourg conflicting domestic judgment already exists, the recognition and enforcement of the foreign judgment is denied.

Opposition

Defences

What defences are available to the losing party to a foreign judgment that is sought to be recognised and enforced in your jurisdiction?

A distinction between EU judgments, foreign judgments subject to a treaty and foreign judgements not subject to a treaty or EU law is necessary.

EU judgments are subject to EU Regulation 1215/2012 of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, and can be challenged on particular grounds and procedures as provided in the regulation.

A foreign judgment subject to a treaty can be challenged by the losing party:

  • within one month of the notification of the judgment when the losing party resides in Luxembourg; and
  • within two months when the losing party resides abroad.

Foreign judgments which are not subject to any treaty or EU law may be challenged by the losing party or the prosecutor during the proceedings commenced by the applicant in order to be enforced in Luxembourg.

Injunctive relief

What injunctive relief is available to defendants (eg, anti-suit injunctions)?

According to Article 932 of the New Code of Civil Procedure, the president of a district court may, in urgent cases, order in a summary procedure all of the measures which do not face any serious dispute or which justify the existence of a dispute. They may also rule on the difficulties relating to the enforcement of a judgment or other enforceable title.

Article 933 also provides that the president of a district court may order in a summary procedure provisional conservatory measures or necessary restitutio in integrum (ie, total reinstatement) measures relevant to preventing significant harm, either to:

  • prevent immediate damage; or
  • end obvious illicit trouble.

In order to prevent the loss of evidence, the president of a district court may order any useful investigative measure, including hearing witnesses. Where the existence of the obligation to pay is not seriously challengeable, the judge may provide for an interim payment to the creditor.

Anti-suit injunctions are not available under Luxembourg law.

Recognition and enforcement procedure

Formal procedure

What is the formal procedure for seeking recognition and enforcement of a foreign judgment?

According to EU Regulation 1215/2012 of 12 December 2012 on the jurisdiction, recognition and enforcement of judgments in civil and commercial matters, foreign judgments rendered in the European Union are recognised on the production of:

  • a copy of the decision;
  • a certificate; and
  • where necessary, translations of both documents.

These judgments are immediately enforceable without any special procedure.

Foreign judgments subject to a treaty can be recognised and enforced once the requirements provided by the treaty are respected.

Foreign judgments not subject to any treaty or EU law are subject to the conditions set out in Article 678 of the New Code of Civil Procedure (NCPC) and Articles 2123 and 2128 of the Civil Code. Those judgments will be granted legal effect in Luxembourg only after being submitted to the exequatur procedure. The court will verify whether the foreign judgment respects the following requirements regarding the ease of enforcement:

  • The original judge had jurisdiction to make a decision according to Luxembourg private international law.
  • The original judge had jurisdiction to make a decision according to its own procedural law.
  • The foreign court applied the law as designated by Luxembourg’s conflict of laws provisions.
  • The foreign procedure rules have been respected.
  • The defendant had proper notice of the proceedings.
  • The decision does not contravene any Luxembourg public policy rules.
  • The foreign decision contains an order that can be executed.

Timeframe

What is the typical timeframe for the proceedings to grant recognition and enforcement?

The timeframe for the proceedings to grant the recognition and enforcement depends on whether the foreign decision is:

  • an EU decision;
  • a foreign decision which is subject to a treaty; or
  • a foreign decision which is not subject to a treaty or EU law.

Decisions rendered in an EU member state fall under Articles 679-685 of the NCPC and are recognised and immediately enforceable in Luxembourg.

Foreign decisions which are subject to a treaty fall under Article 680 of the NCPC. In order to have legal effect in Luxembourg, such decisions must be submitted to the simplified exequatur formalities (ie, the applicant must file an ex parte partition with the president of a district court, who will grant an order if all conditions are respected).

Foreign decisions which are not subject to a treaty or EU law fall under Article 678 of the NCPC and must be submitted to the exequatur formalities in order to be recognised and enforced in Luxembourg. The foreign judgment must be submitted to a district court and a prosecutor must determine whether the public interest will be jeopardised. This written proceeding demands filing of briefs between the parties’ attorneys. The recognition and enforcement of foreign judgments which are not subject to any treaty or EU law generally takes a few months, making it a relatively long process.

Fees

What fees apply to applications for recognition and enforcement of foreign judgments?

Proceedings for recognising and enforcing foreign judgments are not subject to initial court fees.

According to Article 238 of the NCPC, procedural costs encompass:

  • fees resulting from preliminary investigations;
  • bailiff fees;
  • clerk fees;
  • expert fees; and
  • the costs set out in the Grand-Ducal Regulation of 21 March 1974 concerning the rights and emoluments awarded to lawyers and solicitors, as amended.

Procedural costs do not include lawyers’ fees.

Procedural compensation is set out in Article 240 of the NCPC and includes all lawyers’ fees excluding any procedural costs. Parties must request procedural costs during the proceedings.

Applicants in proceedings for recognising and enforcing a foreign judgment need only pay lawyers’ and bailiffs’ fees.

Luxembourg’s low legal fees make it an attractive jurisdiction for recognising and enforcing foreign judgments.

Security

Must the applicant for recognition and enforcement provide security for costs?

Applicants need only pay lawyers’ and bailiffs’ fees.

Appeal

Are decisions on recognition and enforcement subject to appeal?

In principle, recognition and enforcement decisions can be subject to appeal.

According to Article 682 of the NCPC, defendants may appeal judgments authorising the execution of a foreign judgment which is subject to a treaty or EU law provided that exequatur procedures are followed:

  • within one month of the notification of the decision if the applicant is domiciled in Luxembourg; or
  • within two months if the applicant is domiciled abroad.

Appeals are introduced by writs served by a court bailiff.

In accordance with Article 683 of the NCPC, applicants may also appeal against a decision rejecting the execution of foreign judgments which are subject to a treaty or EU law provided that exequatur procedures are followed within one month of the notification of the decision of refusal.

Appeals must be filed within one month from the notification of the decision if the applicant is domiciled in Luxembourg or within two months if they are domiciled abroad. 

Other costs

How does the enforcing court address other costs issues arising in relation to the foreign judgment (eg, calculation of interest, exchange rates)?

Under EU regulation, in order to enforce a judgment from one EU member state in another, applicants must provide the competent enforcement authority with a certificate issued by the court of origin, certifying that the judgment is enforceable and containing an extract of the judgment and (if applicable) relevant information regarding the recoverable procedural costs and the calculation of interest.

Enforcement against third parties

To what extent can the courts enforce a foreign judgment against third parties?

A person domiciled in an EU member state may be sued as a third party in an action on a warranty or guarantee or in any other third-party proceedings, in the court of the original proceedings unless these were instituted solely with the object of removing them from the competent court’s jurisdiction.

Luxembourg courts can therefore enforce foreign judgments against third parties.

Partial recognition and enforcement

Can the courts grant partial recognition and enforcement of foreign judgments?

Under Article 685 of the NCPC, foreign judgments may be partially enforced.