“May you live in interesting times.” This ancient Chinese curse, though probably apocryphal, reflects just how unwelcome change can be, particularly when it is sudden or unexpected. Change can lead to uncertainty, and uncertainty can lead to risk.
Amongst many other things, the UK’s decision to leave the European Union has led to uncertainty about the future service of proceedings and enforcement of judgments in other EU jurisdictions. The UK currently enjoys relatively favourable European rules on service and enforcement. These rules will need to be reviewed in light of Brexit, and new rules will need to be agreed as part of the UK’s exit negotiations. Although the shape and content of the new rules is uncertain, it seems reasonable to assume that they will lead to a slower and more expensive process for service and enforcement. To further compound the problem, the fall in the value of sterling is already reducing the amount which judgment creditors are recovering on debts valued in foreign currencies.
The UK has not yet invoked Article 50 of the Lisbon Treaty (the signing of which would begin the UK’s formal withdrawal process from the EU). Therefore, as things stand, the UK continues to benefit from the EU rules on service and enforcement in other EU jurisdictions. A pragmatic approach for any company contemplating serving proceedings or enforcing a judgment in the EU would be to do so right away before the rules change
Holmes & Hills has a team of debt recovery solicitors that is regularly instructed to provide advice and assistance in the recovery of debts from parties in other EU jurisdictions and further afield. If you have any questions about these issues, or would like any more information, please call Tom Farrell on 01787 275275.
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