Mainland Judgments (Reciprocal Enforcement) Ordinance (Highlights)

The long-awaited arrangement of reciprocal enforcement of PRC and Hong Kong judgments has now become effective in Hong Kong.

Background

Judgments given by Mainland courts requiring payment of money could only be recognised and enforced in Hong Kong by beginning a new action in debt at common law
Such proceedings were often time consuming and involved high legal costs

On 14 July 2006, 'The Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region Pursuant to Choice of Court Agreements between Parties Concerned' was signed between the Department of Justice and the Supreme People's Court in the Mainland
The Mainland Judgments (Reciprocal Enforcement) Ordinance (cap 597) is to implement the Arrangement

The Mainland Judgments (Reciprocal Enforcement) Bill was passed on 23 April 2008
The Ordinance came into effect on 1 August 2008

The Ordinance is modelled on the Foreign Judgment (Reciprocal Enforcement) Ordinance (Cap. 319)
Enforcement is by way of registration of money judgments
A registered Mainland judgment has the same force as a judgment originally given by the Court of First Instance and entered on the date of registration

The Ordinance only applies to enforcement of money judgments on disputes arising out of commercial contracts
Non-commercial contracts such as matrimonial and employment contracts are excluded
Sino-foreign joint-venture disputes are also excluded because they fall within the exclusive jurisdiction of the Mainland courts

The underlying commercial contracts must contain valid 'choice of Hong Kong Court agreement' or 'choice of Mainland court agreement'
The choice of court agreement has to be made after the commencement of the Ordinance

Judgments to be registered must be money judgments not in respect of payment of tax, fine or penalty
Costs orders and allocaturs are registrable
In Hong Kong, only Mainland judgments from designated courts (namely the Supreme People's Court, a Higher People's Court, an Intermediate People's Court or a recognised Basic People's Court) are recognised
In the Mainland, money judgments from any courts in Hong Kong are recognised

The judgment to be enforced has to be final and conclusive and is given after the commencement of the Ordinance
In Hong Kong, a certificate from the Mainland court is required on finality of the judgment
In the Mainland, (i) a copy of the judgment in Hong Kong certified by a Hong Kong court and (ii) a certificate to certify the judgment is enforceable by way of execution in Hong Kong are required

Within 2 years
Limitation period starts running from the last day of the specified period within which the judgment ought to have been performed; or, in any other case, from the date from which the judgment takes effect.

jurisdiction lies with the courts of the respondent's domicile or ordinary residence and also with the courts of any place where the respondent has property
the applicant must elect to file in only one such court

11 grounds are specified in the Ordinance; they include:-

the Mainland judgment is not a judgment of a designated court under the Ordinance
the choice of Mainland court agreement is not valid
the judgment has been wholly satisfied
the Hong Kong courts have exclusive jurisdiction over the matter
the judgment was obtained by fraud
enforcement of the judgment is contrary to public policy
the judgment is reversed or set aside pursuant to an appeal or a retrial under the laws of the Mainland