Married Couple Owing 245 Million Yuan Relocates Overseas and Faces Cross-Border Enforcement; Nanjing Court's 5 Civil and Commercial Judgments Recognized by English Court

Reporters learned from the Intermediate People’s Court of Nanjing that recently, a UK court agreed to recognize multiple judgments made by Chinese courts in Nanjing. A married couple who moved to the UK faces cross-border enforcement for debts exceeding 245 million yuan. This case reflects fairness, openness, and inclusiveness, and demonstrates the continuous rise of China’s judicial influence internationally.

Heavily in debt and moving abroad, claiming Chinese courts lack jurisdiction?

According to reports, on February 11 of this year, the High Court of England and Wales issued a ruling recognizing five civil and commercial judgments made by the Qinhuai District People’s Court and the Qixia District People’s Court in Nanjing, involving a total amount of over 245 million yuan.

The basic facts of the case are as follows: Yuan and Gao, a married couple, borrowed multiple times from Li and Chen during the operation of Han Co., Ltd.; Han Co., Ltd. also established investment partnerships with Jiang, Li乙, and Bao. Later, due to operational issues, Li, Chen, Jiang, Li乙, and Bao’s partnership demanded repayment from Yuan, Gao, and Han Co., Ltd., and filed five civil and commercial lawsuits. The Qinhuai and Qixia courts accepted these disputes based on jurisdictional and contractual provisions under civil procedure law. Due to the defendants’ unknown whereabouts, the courts conducted service by public notice and default judgment, ensuring procedural justice, and issued five judgments ordering the defendants to repay principal, interest, and litigation costs totaling over 245 million yuan.

After the judgments took effect, the five plaintiffs learned that Yuan and Gao had moved to the UK. They then initiated cross-border enforcement procedures, applying to the High Court of England and Wales for recognition and enforcement of these judgments. Yuan and Gao argued that they had officially settled in Cyprus in summer 2016, obtained Cypriot passports in July 2017, and were not residing in China at the time of the lawsuit. They claimed they had not received, nor were aware of, any litigation, and had not agreed to Chinese court jurisdiction, thus asserting that Chinese courts lacked jurisdiction.

UK Court fully recognizes the legitimacy of Nanjing court’s service by publication

The High Court of England and Wales reviewed and found that, under common law, the standards for enforcing foreign court judgments are: the judgment must be final, recognized by UK law, made by a court with jurisdiction, and the amount fixed and clear. In these five cases, all parties agreed that the judgments were final and the amounts were clear. The key issue was whether the Nanjing courts had jurisdiction based on the parties’ agreement or the defendants’ residence. After review, the UK court fully accepted the legitimacy of the Nanjing courts’ service by publication, recognizing that the parties had agreed in their contracts that Nanjing courts would have jurisdiction, satisfying the common law requirement that parties agree to the jurisdiction of the court before litigation. Additionally, based on the defendants’ entry and exit records, living expenses, and business activities, the court determined that Yuan and Gao had actual ties to Nanjing. Therefore, all five judgments met the requirement that the defendants were present in the foreign jurisdiction at the time of filing. Accordingly, the UK court ruled that the five valid civil and commercial judgments from Nanjing courts could be enforced against Yuan and Gao in England as judgments under common law.

Laying the groundwork for future enforcement of Chinese court judgments in the UK

Recognition and enforcement of foreign civil and commercial judgments are key aspects of cross-border dispute resolution and international judicial assistance. This ruling by the UK court not only marks progress in the recognition and enforcement of foreign judgments by Chinese courts but also demonstrates the professionalism, standardization, and fairness of Nanjing’s foreign-related commercial trials. It has been recognized and affirmed by the international judicial community. The UK court’s recognition of the five judgments based on common law principles, with thorough reasoning on jurisdiction and service procedures, provides a legal precedent for the recognition and enforcement of Chinese judgments in the UK. It reflects the ongoing enhancement of China’s judicial international credibility and influence. This development is significant for increasing the predictability of cross-border recognition and enforcement of Chinese civil and commercial judgments, improving legal mechanisms to protect the overseas interests of Chinese citizens and enterprises, and fostering a market-oriented, rule-of-law, and internationalized first-class business environment.

Yangtze Evening Post / Ziniu News Reporter Ren Guoyong, Correspondent Ning Fa Xuan

Proofreader: Tao Shanggong