Enforcing Overseas Judgements

Obtaining a court judgment overseas is often not the end of the recovery process. If the person or company that owes you money is in New Zealand or holds assets here, further steps may be needed before the judgment can be enforced and the money recovered.

Likewise, if an overseas judgment is being enforced against you or your business in New Zealand, you should understand your position promptly. Depending on the circumstances, there may be grounds to challenge the enforcement process, seek a stay, negotiate a resolution, or otherwise protect your interests.

The process depends on where the judgment was obtained and the type of judgment involved. Australian judgments have a specific Trans-Tasman procedure. Some judgments from other countries can be registered under reciprocal enforcement arrangements, while others may require a New Zealand proceeding based on the overseas judgment. The correct route should be identified before significant enforcement costs are incurred.

For a judgment creditor, the key question is not only whether the judgment can be recognised in New Zealand, but whether there is a realistic and commercially sensible way to recover the money. Before taking enforcement steps, it can be useful to assess:

• Where the debtor is living, working or carrying on business in New Zealand; and

• Whether the debtor owns New Zealand property, shares, companies, business interests or other assets; and

• Whether there may be money held in bank accounts, income, or funds owed to the debtor by another person or business; and

• Whether the debtor has insolvency issues, other creditors, or circumstances that may affect the prospects of recovery; and

• Whether the likely recovery justifies the cost of the proposed enforcement steps.

Once an overseas judgment is enforceable here, the recovery options will depend on the debtor and the assets identified. These may include attachment or garnishee proceedings, enforcement against property, bankruptcy, liquidation, or a negotiated payment arrangement. The strongest option is not always the best one. A targeted strategy based on reliable asset information can reduce unnecessary costs and improve the prospects of actual recovery.

Our Partner, Michael Robinson, and Senior Solicitor, Luis Paulo Santana De Mattos, are the principal Turner Hopkins contacts for overseas judgment recognition and enforcement matters. Michael and Luis are available to help if you are:

1. A company or individual who has obtained an overseas judgment and wants to recognise, register and enforce it in New Zealand; and/or

2. An overseas lawyer or judgment creditor who needs New Zealand counsel to assess assets, recovery options and the most commercially effective enforcement strategy; and/or

3. A company or individual facing enforcement of an overseas judgment in New Zealand and needing advice about challenging, staying, negotiating, or responding to the enforcement process.

Turner Hopkins has particular experience in the recognition and enforcement of Chinese judgments in New Zealand, an area that can involve different considerations from judgments obtained in more traditional common law and Western jurisdictions. We also assist with judgments from those jurisdictions, allowing us to assess the appropriate New Zealand process and focus on the practical steps required to achieve recovery.

We can assist from the initial review of the overseas judgment through to enforcement and recovery, including assessing available asset information before substantial costs are incurred. Whether you are a judgment creditor or judgment debtor, early advice can help identify the practical options and the best next step.

Contact Michael and Luis directly at Michael.robinson@turnerhopkins.co.nz and Luis.demattos@turnerhopkins.co.nz to discuss your overseas judgment, recovery options and the next steps in New Zealand.