RUKSUNIVERSITEIT GRONINGEN Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters: A Proposal for Vietnam Proefschrift ter verkrijging van het doctoraat in de Rechtsgeleerdheid aan de Rijksuniversiteit Groningen op gezag van de Rector Magnificus, dr. F. Zwarts, in het openbaar te verdedigen op donderdag 29 juni 2006 om 16:15 mir door Du Ngoc Bich geboren op 27 juli 1974 te Long Phu-Chau Doc-An Giang, Vietnam
Table of contents Acknowledgments Table of contents Abbreviations INTRODUCTTON CHAPTER1: VIETNAMESE LAW ON FOREIGN JUDGMENT RECOGNITION AND ENFORCEMENT 1.1. Introduction 7 1.1.1 Introduction to the Vietnamese State's organs and legal system 7 1.1.1.1 The national assembly 7 1.1.1.2 The President ofthe State 8 1.1.1.3 The executive bodies 8 1.1.1.4 The court system 9 1.1.1.5 The People's Procuracy 10 1.1.1.6 Local governments 11 1.1.1.7 Sources and Interpretation of law 11 1.1.2 Overview of the developing process of legal assistance activities in Vietnam 12 1.1.2.1 The period 1945-1980 12 1.1.2.2 The period 1980-1992 13 1.1.2.3 Sincel992 14 1.2 Treaties (bilateral legal assistance agreements) 15 1.2.1 The scopeof matters thatcanbe recognised and enforced 16 1.2.2 Recognition conditions 17 1.2.3 Recognition and enforcement procedures 20 13 Domcstic law on recognition and enforcement 21 1.3.1 The scopeof matters thatcanbe recognised and enforced 22 1.3.2 The principles that apply to recognition and enforcement 23 1.3.3 Foreign civil judgments which will not be recognised and enforced in Vietnam under article 356 26 1.3.3.1 The civil judgment has notyet taken legal effect under the provisions oflaw ofthe countries where the courts have rendered such judgments 26
1.3.3.2 The defendant or his representative was absentfrom the foreign court because they had not been duly summoned 26 1.3.3.3 The casesfall under the exclusive jurisdiction of Vietnamese courts 26 1.3.3.4 There has been a legally effective civil judgment in the same dispute, which has been made by a Vietnamese court or by another foreign court, whose judgment has been recognised in Vietnam or the case had been accepted and was being adjudicated in a Vietnamese court before it was accepted at the foreign court 28 1.3.3.5 The time to enforce has expired according to the law of the foreign court or according to Vietnamese law 29 1.3.3.6 Recognition and enforcement are contrary to fundamental principles of Vietnamese law 30 1.3.4 Recognition and enforcement procedures 32 1.3.4.1 Non- executionary judgments under treaties covered by 2004 CPC article 343 paragraph 5 32 1.3.4.2 Non-executionary judgments 33 1.3.4.3 Executionary judgments 34 1.3.5 Recognition and enforcement of executionary judgments in practice 38 1.3.5.1 Under Bilateral legal assistance agreements 38 1.3.5.2 Non-bilateral legal assistance agreements 38 1.4 Concluding remarks 41 CHAPTER 2: DUTCH LAW ON FOREIGN JUDGMENT RECOGNITION AND ENFORCEMENT 43 2.1 Introduction 43 2.1.1 Overview of the legal system 43 2.1.2 General remarks on the matter of recognition and enforcement of foreign judgments in the Netherlands 45 2.2 Legislation 47 23 "Case law" development 49 2.3.1 "Prins Hendrik" case 49 2.3.2 The New York divorce case 50 2.3.3 The Für Coat case and subsequent cases 51 2.3.4 The Esmil/Enka case 52 2.4 The conditions for recognition and enforcement of foreign judgments 55 2.4.1 Jurisdiction of foreign courts 55
2.4.1.1 Forum rei 56 2.4.1.2 Forum solutionis contractus 56 2.4.1.3 Forum of economically weaker party 57 2.4.1.4 The forum chosen by the parties 57 2.4.1.5 Voluntary appearance 57 2.4.1.6Forum rei sitae 58 2.4.1.7 Jurisdiction on branch, agency and other establishment 58 2.4.1.8 Forum delicti 58 2.4.1.9 Forum connextatis 58 2.4.1.10 Forum arresti 59 2.4.2 Public policy 59 2.4.2.1 Substantive public policy 60 2.4.2.2 Fraud 62 2.4.2.3 Reasoning 62 2.4.2.4 Conflicting judgments 63 2.4.3 Procedural public policy 63 2.4.3.1 The right to be duly summoned 64 2.4.3.2 The right to be heard by an impartial court 65 2.4.4 Finality 65 2.5 Conchiding remarks 67 m CHAPTER 3: AUSTRALIAN LAW ON FOREIGN JUDGMENT RECOGNITION AND ENFORCEMENT 71 3.1 Introduction 71 3.1.1 Legal system 71 3.1.1.1 Federal system 71 3.1.1.2 The State and the relationship between the Commonwealth and State power 73 3.1.1.3 The court system 73 3.1.1.4 Legislating 76 3.1.2 Important features of foreign judgment recognition and enforcement in Australia 78 3.1.2.1 Treaties 78 3.1.2.2 Domesticlaw 80 3.2 Recognition and enforcement of foreign judgments atcommon law 82 3.2.1 Conditions for recognising and enforcing foreign judgments 84 3.2.1.1 Competent jurisdiction 84 3.2.1.2 Finality and conclusiveness 89
rv 3.2.1.3 The identity ofthe parties 91 3.2.1.4 A judgment must be for a definite sum to be enforceable 91 3.2.2 The effectofa foreign judgment 91 3.2.2.1 Conclusive effectofa foreign judgment 91 3.2.2.2 Effectofforeign judgments in enforcement proceedings 92 3.2.2.3 Effect of foreign judgments by way ofestoppel 93 3.2.2.4 Effect ofa foreign judgment when the court lacked internal competence 95 3.2.3 Defences 96 3.2.3.1 Fraud 96 3.2.3.2 Breach ofnatural or substantialjustice 102 3.2.3.3 Public policy 105 3.2.3.4 Penal or revenue judgments 107 3.2.3.5 The foreign court refused to apply the appropriate law 110 3.2.3.6 A prior judgment within theforum between the same parties and concerning the same issue or issues 110 3.3 Recognition and enforcement of foreign judgments under legislation (the 1991 Foreign Judgments Act) 111 3.3.1 The principle of the Act' s application 111 3.3.2 Scopeof matters applied 113 3.3.3 Registration conditions 114 3.3.4 Grounds for setting aside a registered judgment 116 3.3.4.1 International jurisdiction 116 3.3.4.2 Naturaljustice 119 3.3.4.3 Fraud 120 3.3.4.4 Public policy 120 3.3.4.5 Prior judgment 120 3.3.5 Procedures for registration and enforcement and the effect of registration 121 3.3.5.1 Competent court 121 3.3.5.2 Application for registration 121 3.3.5.3 Notice of registration 123 3.3.5.4 Effect of registered judgments 124 3.3.6 Recognition of the conclusiveness of foreign judgments 125 3.4 Advantages and disadvantages brought by the current common law and legislation regimes 126 3.5 Concluding remarks 128
CHAPTER 4: THE HAGUE PROJECT ON JURISDICTION AND FOREIGN JUDGMENTS IN CIVBL AND COMMERCIAL MATTERS 135 4.1 Introduction 135 4.1.1 The Hague Conference on Private International Law 135 4.1.2 The Hague projecton judgments 136 4.1.3 The failure of the 1999 draft - and the coming into being of a new Convention on Choice of Court Agreements 138 4.2 The preliminary draft Convention on jurisdiction and foreign judgments in civil and commercial matters 1999 140 4.2.1 The scope of "civil and commercial matters" 140 4.2.2 Jurisdiction 141 The White list (the Green list) 4.2.2.1 General ground oj'jurisdiction: defendant's forum 141 4.2.2.2 Choice of court 143 4.2.2.3 Appearance by the defendant 145 4.2.2.4 Contracts 146 4.2.2.5 Contracts concluded by consumers 148 4.2.2.6 Individual contracts of employment 149 4.2.2.7 Branches and regulär commercial activity 150 4.2.2.8 Toris or delicts 152 4.2.2.9 Exclusivejurisdiction 154 4.2.2.10 Multiple defendants 157 4.2.2.11 Counter Claims 158 4.2.2.12 Thirdparty Claims 158 The block list 4.2.2.13 Prohibited grounds of jurisdiction 159 The grey list 4.2.2.14 jurisdiction under national law 163 4.2.3 Recognition and enforcement 163 4.2.3.1 Definition of judgment 163 4.2.3.2 Conditions for recognition or enforcement 163 4.2.3.3 Verification of jurisdiction 165 4.2.4 Grounds for refusal of recognition or enforcement 167 4.2.4.1 lis alibi pendens 167 4.2.4.2 Inconsistentjudgments 168 4.2.4.3 Incompatibility with fundamental principles ofprocedure 169 4.2.4.4 Lack of sufficient notice 170
VI 4.2.4.5 Fraud 171 4.2.4.6 Public policy 172 4.2.5 Documents required 173 4.2.6 Damages 174 4.2.7 Severability 176 4.2.8 Settlements 176 4.3 The Hague Convention on Choice of Court Agreements 177 4.3.1 Scope of civil and commercial matters 177 4.3.2 Exclusive choice of court agreements 178 4.3.3 Jurisdiction ofthe chosen court 179 4.3.4 Obligation of a court not chosen 180 4.3.5 Recognition and enforcement 181 4.3.6 Remsalof recognition or enforcement 182 4.3.7 Damages 185 4.3.8 Settlements 185 4.3.9 Documents required and procedure 185 4.3.10 Severability 186 4.4 Concluding remarks 186 CHAPTER 5: COMPARISONS AND CONCLUSIONS 191 5.1 Introduction 191 5.2 Why should Vietnam recognise and enforce foreign judgments? 192 5.2.1 Theoretical explanations 192 5.2.1.1 Comity 192 5.2.1.2 Reciprocity 193 5.2.1.3 Vestedrights 195 5.2.1.4 Obligation 195 5.2.2 Practical interest explanations 197 5.2.2.1 Interest explanations for recognition and enforcement of foreign judgments 197 5.2.2.2 Interest explanations against recognition and enforcement of foreign judgments 199 53 Is the prindple of reciprocity necessary? 200 5.4 Can tlie current law be applied to non-treaty judgments? 202 5.4.1 The procedure for non-recognition of non-executionary judgments 202 5.4.2 The procedure for recognition and enforcement of executionary judgments 204 5.5 What are the changes? 205
VII 5.5.1 Scope of application of the future legislation 205 5.5.2 The format ofthe future legislation 206 5.5.3 Jurisdiction of the foreign court 208 5.5.3.1 Forum ofthe defendant 211 5.5.3.2 Choice of court 212 5.5.3.3 Voluntary appearance by the defendant 213 5.5.3.4 Contracts 214 5.5.3.5 Branch, agency, or other establishment 216 5.5.3.6 Torts or delicts 217 5.5.3.7 Immovableproperty 218 5.5.3.8 Counter-claims 219 5.5.3.9 Multiple defendants 220 5.5.3.10 Thirdparty Claims 221 5.5.3.11 The matter ofprotective jurisdiction (contracts concluded by consumers and individual contracts ofemployment) 222 5.5.3.12 The priority sequence ofthe accepted grounds of jurisdiction 223 5.5.3.13 The matter ofverification of jurisdiction of the original court 225 5.5.4 Finality 225 5.5.5 Fundamental principlesofprocedural law. 227 5.5.5.1 The right to be duly notified 229 5.5.5.2 The right to be heard by an impartial court 230 5.5.6 Public policy 231 5.5.7 Fraud in connection with a matter of procedure 234 5.5.8 lls alibi pendens and conflict judgments 236 5.5.9 Damages 239 5.6 Concluding remarks 240 TEXT OF PROPOSAL 242 ANNEX I- ACCEPTED GROUNDS OF JURISDICTION 243 ANNEX H- AUSTRALIAN FOREIGN JUDGMENTS REGULATION 1992 245 SUMMARY 251 SAMENVATTING(SUMMARYINDUTCH) 259 BD3LIOGRAPHY 269