We often have clients in Australia approach us and ask us to enforce monetary judgments obtained in civil proceedings in Australian courts. In our experience this tends to occur where the client is aware that the judgment debtor has significant assets in New Zealand, eg real estate.
Reciprocal Enforcement of Judgments Act 1934
The Reciprocal Enforcement of Judgments Act 1934 ("the Act"), and allows for the registration enforcement in New Zealand of judgments given in Australia, the United Kingdom and other countries where there is reciprocal treatment of New Zealand judgments in the corresponding foreign countries.
The registration of a foreign judgment under the Act is done by an application to the High Court. Upon registration the judgment has effect as if it had been an order of a New Zealand High Court, and enforcement proceedings to recover the judgment sum can be initiated.
The Act's days are numbered in respect of Australian judgments following the passage of the Trans-Tasman Proceedings Act 2010 ("TTP Act").
The operative provisions of the TTP Act are not yet fully in force, but we understand that it should be fully in force by the end of 2012.
The Act will continue to govern the registration of judgments of other countries which reciprocate the recognition of New Zealand judgments.
Trans-Tasman Proceedings Act 2010
The purpose of the TTP Act and its Australian counterpart is to "streamline the process for resulting civil proceedings, with a trans-Tasman element in order to reduce costs and improve efficiency". Australia passed its own version of the TTP Act in April 2010, and like its NZ counterpart, the operative provisions are yet to come into force.
The TTP Act essentially imports the requirements of the Act in respect of the registration of Australian judgments, but is wider in its application and more prescriptive than its predecessor.
The basic rule for registration under the TTP Act remains that the judgment must be a "final and conclusive judgment" given in a civil proceeding by an Australian court (and tribunals in some circumstances), and be registered with six years of the judgment (or the date of the appeal decision).
As with the current regime under the Act, there are provisions to have the registration of a foreign judgment "set aside", but this action must be taken quickly as any application to set aside registration must be made within 30 days of receiving notice of registration.
The TTP Act contains the significant benefit of being able to enforce specified "non-money orders" (such as injunctions) which cannot be registered at present under the Act.
The application for registration will also be able to be made to the appropriate New Zealand court which has the jurisdiction to give the relief specified in the judgment, rather than the High Court as required by the Act. This will have the benefit of reducing the application costs in some cases.
The TTP Act also provides for:
- Service in Australia of initiating documents for civil proceedings commenced in New Zealand courts;
- The ability of New Zealand Courts to decline jurisdiction to hear a matter on the grounds that an Australian Court is a more appropriate forum;
- The ability for New Zealand Courts to give interim relief in support of civil proceedings in Australian Courts;
- Remote appearances from New Zealand in Australian proceedings; and
- Recognition and enforcement in New Zealand of Australian judgments imposing certain regulatory regime criminal fines.
We will be pleased to continue to assist our overseas clients with any queries about the registration of foreign judgments.
We will also be pleased to advise you in respect of other foreign judgments, or enforcement of New Zealand judgments in foreign jurisdictions.
This Article is for information purposes only. Its contents do not constitute legal advice and should not be regarded as a substitute for detailed advice.
