Which foreign judgments can be registered in Australia?
The Foreign Judgments Act 1991 (Cth) allows a money judgment from a listed foreign court to be registered in an Australian court. It then has the same force as a local judgment.
The Foreign Judgments Regulations 1992 (Cth) list, among others, the United Kingdom, Singapore, Hong Kong, Japan, the Republic of Korea, France, Germany, Italy, Switzerland, Israel, Poland, Taiwan, Sri Lanka, Fiji, Papua New Guinea and the Canadian provinces of Alberta, British Columbia and Manitoba.
The United States, China, India, the UAE and the other Gulf states are not listed, so their judgments take the common-law route below. New Zealand judgments have their own regime under the Trans-Tasman Proceedings Act 2010 (Cth).
How does registration under the Foreign Judgments Act work?
The creditor applies to the Supreme Court of a State or Territory within six years (s 6(1)–(2)). In Queensland that is the Supreme Court of Queensland in Brisbane. The court must order registration if the formal requirements are met (s 6(3)).
The debtor is then served and may apply to set registration aside. Under s 7(2)(a), the court must do so if:
- the foreign court had no jurisdiction under s 7(3)
- the debtor had no notice in time to defend
- the judgment was obtained by fraud or reversed on appeal
- enforcement would be contrary to public policy.
Where the Act applies, it is the only route (s 10).
How are judgments from non-listed countries enforced?
A judgment from a non-listed country is enforced by a new action in an Australian court. The creditor must prove four things: Benefit Strategies Group Inc v Prider (2005) 91 SASR 544; Bao v Qu; Tian (No 2) [2020] NSWSC 588.
- The foreign court had jurisdiction over the debtor, usually because the debtor was present there when served or submitted to its jurisdiction.
- The judgment is final and conclusive.
- The parties are the same.
- The judgment is for a fixed or readily calculable sum.
The debtor can resist only for fraud, public policy or denial of natural justice. Australian courts have enforced Chinese and United States judgments this way: Bao v Qu; Doe v Howard [2015] VSC 75.
How are foreign arbitral awards enforced in Australia?
Australia, the United States, China and every Gulf state are parties to the New York Convention. Part II of the International Arbitration Act 1974 (Cth) gives it effect.
Under s 8, a foreign award may be enforced in the Federal Court or a State Supreme Court “as if the award were a judgment or order of that court”.
The court may refuse enforcement only on the grounds in s 8(5) and s 8(7). These are incapacity, an invalid arbitration agreement, lack of proper notice, an award outside the submission, irregular procedure, an award not yet binding or set aside, non-arbitrable subject matter, and public policy. Public policy includes fraud, corruption and breach of natural justice (s 8(7A)). An error of law on the face of the award is no ground for refusal: TCL Air Conditioner (Zhongshan) Co Ltd v Judges of the Federal Court of Australia [2013] HCA 5.
What should you do if you hold a judgment or award against an Australian debtor?
- Check whether the court that gave the judgment is listed in the Regulations. That decides the route.
- Obtain a certified copy of the judgment or award and evidence of service.
- Investigate the debtor’s Australian assets early.
- Consider a freezing order if assets may be moved.
- Once recognised, enforce. A statutory demand can be served on a company for a judgment debt of $4,000 or more, leading to a winding-up application. A bankruptcy notice can be served on an individual for a judgment of at least $10,000 (see personal guarantees and bankruptcy). Enforcement warrants under the Uniform Civil Procedure Rules 1999 (Qld) allow seizure and sale, redirection of debts (garnishee) and charging orders.
How Taylor David can help
We act for overseas companies, funds, insolvency practitioners and individuals with assets to recover in Australia. We can:
- confirm the route, the time limit and the court
- prepare and file the enforcement application, and resist set-aside applications
- obtain freezing orders
- run statutory demands, bankruptcy notices, winding-up applications and enforcement warrants.
We advise only on Australian law and Australian-based matters. This work sits within our litigation and insolvency practices, alongside debt recovery and commercial disputes.