I. RECOGNITION AND ENFORCEMENT OF A FOREIGN COURT DECISION (CIVIL AND COMMERCIAL MATTERS)

 

Is it possible to apply for enforcement of a foreign court judgment in Lithuania?

Yes, pursuant to article 809 of the Code of Civil Procedure, a foreign court judgment can be enforced only after the Lithuanian Court of Appeal recognizes and permits to enforce it.

Which laws are generally applicable to the enforcement of a foreign court judgment in Lithuania?

The law that is applicable to the recognition of a foreign court judgment is the Code of Civil Procedure.

The law that is applicable to the enforcement of a foreign court judgment is the Code of Civil Procedure.

Are there any special rules regarding the enforcement of a foreign court judgment in Lithuania?

Bilateral international treaties: e.g., Bilateral Convention between Lithuania and Russia, 21st July 1992;

Bilateral Convention between Lithuania and Poland, 26th January 1993.

 

Multilateral International Treaties: e.g., Lugano Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters, 30th October 2007.

Does the European Union have a special procedure to enforce court judgments coming its member states?

Yes.

• Council Regulation (EC) No. 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

This Regulation applies between all Member States of the European Union, including Denmark which has concluded a parallel agreement to Regulation 44/2001 with the European Community. This agreement entered into force on 1st July 2007. Regulation 44/2001 is applicable for Lithuania only for court judgments taken after 1st May 2004 (after Lithuanian entered the EU).

 

Regulation provides that a judgment given in a Member State shall be recognized in the other Member States without any special procedure being required.

 

A judgment given in a Member State and enforceable in that state shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there.

In Lithuania the application shall be submitted to the court or competent authority indicated: Court of Appeal.

• Regulation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims and Council

The Regulation applies between all Member States of the European Union with the exception of Denmark.

 

Absent a dispute over the nature or extent of a debt, it dispenses, under certain conditions, with all intermediary measures in the Member State in which enforcement is sought that have been necessary so far for decisions rendered in another Member State.

 

Those conditions mainly concern the service of documents in the case of judgments by default and try to guarantee that the defendant has voluntarily passed up the opportunity to defend himself. Abolishing exequatur (recognition) enables creditors to obtain quick and efficient enforcement abroad without involving the Member State courts where enforcement is sought in time-consuming and costly formalities.

 

According to Article 20 (Enforcement procedure):

 

"1. Without prejudice to the provisions of this Chapter, the enforcement procedures shall be governed by the law of the Member State of enforcement. A judgment certified as a European Enforcement Order shall be enforced under the same conditions as a judgment handed down in the Member State of enforcement.

 

2. The creditor shall be required to provide the competent enforcement authorities of the Member State of enforcement with:

(a) a copy of the judgment which satisfies the conditions necessary to establish its authenticity; and

 

(b) a copy of the European Enforcement Order certificate which satisfies the conditions necessary to establish its authenticity; and

 

(c) where necessary, a transcription of the European Enforcement Order certificate or a translation thereof into the official language of the Member State of enforcement or, if there are several official languages in that Member State, the official language or one of the official languages of court proceedings of the place where enforcement is sought, in conformity with the law of that Member State, or into another language that the Member State of enforcement has indicated it can accept. Each Member State may indicate the official language or languages of the institutions of the European Community other than its own which it can accept for the completion of the certificate. The translation shall be certified by a person qualified to do so in one of the Member States.

 

3. No security, bond or deposit, however described, shall be required of a party who in one Member State applies for enforcement of a judgment certified as a European Enforcement Order in another Member State on the ground that he is a foreign national or that he is not domiciled or resident in the Member State of enforcement".

And According to Article 21 (Refusal of enforcement):

 

"1. Enforcement shall, upon application by the debtor, be refused by the competent court in the Member State of enforcement if the judgment certified as a European Enforcement Order is irreconcilable with an earlier judgment given in any Member State or in a third country, provided that:

(a) the earlier judgment involved the same cause of action and was between the same parties; and

 

(b) the earlier judgment was given in the Member State of enforcement or fulfills the conditions necessary for its recognition in the Member State of enforcement; and

 

(c) the irreconcilability was not and could not have been raised as an objection in the court proceedings in the Member State of origin.

 

2. Under no circumstances may the Member State of enforcement review the judgment or its certification as a European Enforcement Order as to their substance".

• Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations

The Regulation applies between all Member States of the European Union. Denmark confirmed by a statement to a respective agreement with EU that Denmark would execute provisions of Regulation 4/2009 as far as its provisions partly change provisions of Regulation 44/2001.

 

Regulation 4/2009 came into force on 18th June 2011 and is applicable for all court judgments taken after this date regarding maintenance obligations arising from a family relationship, parentage, marriage or affinity.

• Council Regulation No 2201/2003 of 27 November 2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000

Regulation 2201/2003 is applicable only for court decisions taken after 1st March 2005. This Regulation shall apply, whatever the nature of the court or tribunal, in civil matters relating to divorce, legal separation or marriage annulment, the attribution, exercise, delegation, restriction or termination of parental responsibility.

 

What is the average length of time for this kind of procedure?

Enforcement procedures take approximately two months for granting the enforcement and any additional time needed to sell the assets, if any, subject to the enforcement (which will vary according to the type of assets). However, if there is cassation procedure started it may take additionally 9 – 12 months.

 

II. Denial of Recognition and Enforcement of a Foreign Court Judgment: Reasons

 

Can a Court in your country deny recognition and enforcement of a foreign court judgment? What kind of reasons may justify denial?

Yes.

A foreign court judgment cannot be enforced in Lithuania if:

 

(a) A court judgment cannot be enforced in a state a court of which has given this decision;

 

(b) A court judgment is not recognized following procedure stated in Part VII Chapter LIX Section four of the Code of Civil Procedure.

 

Reasons that may justify denial of recognition:

1. Judgments from a country with which Lithuania has an International Treaty: cases stated in the Treaty will be governed by the treaty (article 810 of the Code of Civil Procedure).

 

2. Judgments from a country with which Lithuania has no International Treaty (article 810 of the Code of Civil Procedure):

 

Recognition shall be denied if:

• A judgment has not come into force according to law of a state in which it has been given;
• According to law of the Republic of Lithuania or provisions of an international treaty a case is attributed to an exclusive competence of courts of the Republic of Lithuania or courts of a third state;
• There was a default of appearance, if one party was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way was not enabled to arrange for her defense; and in case a party was incapable - no possibility of an appropriate representation was made;
• A foreign court judgment, in which recognition is sought, is irreconcilable with a judgment of a Lithuanian court given in a dispute between the same parties;
• A judgment conflicts with a public order determined in the Constitution of the Republic of Lithuania;
• A foreign court has decided questions of ability or capacity, representation by law, family property-related or inheritance relations of a citizen of the Republic of Lithuania and it conflicts with international private law of the Republic of Lithuania, except the cases when Lithuanian courts would have given the same judgment in a particular case.

3. Judgments from a country belonging to the EU: a judgment issued by a Member State shall be recognized in the other Member States without any special procedure being required (article 33 Council Regulation (EC) No. 44/2001).

 

According to article 34 Council Regulation (EC) No. 44/2001):

"A judgment shall not be recognized:

1. if such recognition is manifestly contrary to public policy in the Member State in which recognition is sought;

 

2. where it was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his defense, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so;

 

3. if it is irreconcilable with a judgment given in a dispute between the same parties in the Member State in which recognition is sought;

 

4. if it is irreconcilable with an earlier judgment given in another Member State or in a third State, involving the same cause of action and between the same parties, provided that the earlier judgment fulfills the conditions necessary for its recognition in the Member State addressed".

 

Moreover, a judgment shall not be recognized if it conflicts with Sections 3 (Jurisdiction in matters relating to insurance), 4 (Jurisdiction over consumer contracts) or 6 (Exclusive jurisdiction) of Chapter II, or in a case provided for in Article 72, pursuant to article 35.1 of the Council Regulation (EC) No. 44/2001.

 

What kind of cost and expenses can a claimant expect in this enforcement procedure?

Fees: The fees of lawyers (attorneys) depend on the problems that may arise during enforcement.

Expenses: include translation of documents and other necessary expenses.

 

 

III. FORMAL REQUIREMENTS

Is there a time limit to apply for enforcement of a foreign court judgment?

The general rule, according to article 606 of the Code of Civil Procedure provides that, the application for enforcement has to be filed in five years after the court judgment comes into force.

 

As there is not any legal exception for foreign court judgments, it is considered applicable to them.

Is it mandatory for the judgment to be a final and definitive court judgment?

(i) Judgments from a country with which Lithuania has an international Treaty: according to the Treaty (article 810 Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty: according to article 810 of the Code of Civil Procedure it is not possible to ask for enforcement of a foreign court judgment before it is final and definitive.

 

(iii) Judgments from a country belonging to the EU: a judgment given in a Member State and enforceable in that State shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there (Article 38.1 of the Council Regulation (EC) No. 44/2001).

 

In general terms, under the Lithuanian Code of Civil Procedure there is no special requirement to provisionally enforce a court judgment which is not final and definitive.

What necessary requirements must the foreign court Judgment fulfill to be recognized and enforced?

(i) Judgments from a country with which Lithuania has an international Treaty: according to the Treaty (article 810 of Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty: according to article 810 of the Code of Civil Procedure, the foreign court judgment must fulfill the following requirements to be recognized:

 

a. A judgment has come into force according to law of a state in which it has been given;

 

b. According to law of the Republic of Lithuania or provisions of an international treaty a case has not been attributed to an exclusive competence of courts of the Republic of Lithuania or courts of a third state;

 

c. There was no default of appearance, and party was served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way was enabled to arrange for her defense; and in case a party was incapable - a possibility of an appropriate representation was made;

 

d. A foreign court judgment, in which recognition is sought, is reconcilable with a judgment of a Lithuanian court given in a dispute between the same parties;

 

e. A judgment does not conflict with a public order determined in the Constitution of the Republic of Lithuania;

 

f. A foreign court has not decided questions of ability or capacity, representation by law, family property-related or inheritance relations of a citizen of the Republic of Lithuania and it does not conflict with international private law of the Republic of Lithuania.

 

(iii) Judgments from a countrybelonging to the EU: "A judgment given in a Member State and enforceable in that State shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there". (Article 38.1 of Council Regulation (EC) No. 44/2001).

 

Is it mandatory to pay Court Fees for this kind of application?

No. It is not necessary to pay Court fees to file an enforcement claim.

 

IV. PROCEDURE

1Which Court or courts are competent to decide an enforcement application?

The Court of Appeal.

What information must be contained in the enforcement application of a foreign court judgment?

a). Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (article 810 Code of Civil Procedure).

 

b). Judgments from a country with which Lithuania has no international Treaty:

The enforcement application requested by the party must comprise: a Lithuanian court to which application is addressed (Court of Appeal), the person or persons against whom the decision is to be enforced – their names, surnames, personal codes (if known), living address, name of the document – application to recognize or/and allow to enforce a foreign court judgment, circumstances confirming the subject of an application and the proof confirming it, list of annexes, signature of the applicant and the date. If the applicant does not have a permanent residence address in the Republic of Lithuania and does not have a representative in Lithuania, the address in the Republic of Lithuania for delivering court documents shall be indicated.

 

c). Judgments from a country belonging to the EU:

"1. The procedure for making the application shall be governed by the law of the Member State in which enforcement is sought. 2. The applicant must give an address for service of process within the area of jurisdiction of the court applied to. However, if the law of the Member State in which enforcement is sought does not provide for the furnishing of such an address, the applicant shall appoint a representative ad litem" (Article 40 of the Council Regulation (EC) No. 44/2001).

 

In Lithuania the enforcement application must be done as stated in article 811 of the Code of Civil Procedure, and the applicant shall appoint a representative ad litem (the Procurator). If the applicant does not have a permanent residence address in the Republic of Lithuania and does not have a representative in Lithuania, the address in the Republic of Lithuania for delivering court documents shall be indicated.

What documents must be included with/attached to the application to enforce a foreign court judgment?

a). Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (article 810 Code of Civil Procedure).

 

b). Judgments from a country with which Lithuania has no international Treaty:

 

The documents listed in Article 811 of the Code of Civil Procedure must be attached to the enforcement application: the Foreign Court Judgment and its confirmed translation, the power of attorney (if an applicant has a representative), confirmation that the court judgment has come into force, proof that the opposite party has been informed about the place and time of hearings, and any other that the special case required.

 

c.) Judgments from a country belonging to the EU (Article 53 of the Council Regulation (EC) No. 44/2001):

1). A copy of the judgment which satisfies the conditions necessary to establish its authenticity.

 

2). The certificate referred to in Article 54 (the court or competent authority of a Member State where a judgment was given shall issue, at the request of any interested party, a certificate using the standard form in Annex V of this Regulation) without prejudice to Article 55 (1. If the certificate referred to in Article 54 is not produced, the court or competent authority may specify a time for its production or accept an equivalent document or, if it considers that it has sufficient information before it, dispense with its production. 2. If the court or competent authority so requires, a translation of the documents shall be produced. The translation shall be certified by a person qualified to do so in one of the Member States).

 

If the enforcement application meets the requirements mentioned above and if the instrument presented is one of the instruments that permit enforcement, the application will be granted by the judge to whom it was made.

What are the phases of the procedure to enforce a foreign court judgment?

(i) Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (article 810 Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty:

 

1. Recognition and Enforcement application.

2. Opposition by the defendant.

3. Recognition.

4. Enforcement. Court decision granting the enforcement.

5. Selling the assets subject to enforcement.

 

(iii) Judgments from a country belonging to the EU:

1. Enforcement application.

2. Court decision granting the enforcement.

3. Appeal.

4. Selling the assets subject to enforcement.

Are there a limited number of reasons for the defendant to oppose to the enforcement of the court judgment? What are those reasons?

Yes.

(i) Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (article 810 Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty:

 

The defendant may oppose the enforcement against him on such reasons:

• A judgment has not come into force according to law of a state in which it has been given;
• According to law of the Republic of Lithuania or provisions of an international treaty a case is attributed to an exclusive competence of courts of the Republic of Lithuania or courts of a third state;
• There was a default of appearance, if one party was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way was not enabled to arrange for her defense; and in case a party was incapable - no possibility of an appropriate representation was made;
• A foreign court judgment, in which recognition is sought, is irreconcilable with a judgment of a Lithuanian court given in a dispute between the same parties;
• A judgment conflicts with a public order determined in the Constitution of the Republic of Lithuania;
• A foreign court has decided questions of ability or capacity, representation by law, family property-related or inheritance relations of a citizen of the Republic of Lithuania and it conflicts with international private law of the Republic of Lithuania, except the cases when Lithuanian courts would have given the same judgment in a particular case.

(iii). Judgments from a country belonging to the EU:

 

1. if such recognition is manifestly contrary to public policy in the Member State in which recognition is sought;

 

2. where it was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his defense, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so;

 

3. if it is irreconcilable with a judgment given in a dispute between the same parties in the Member State in which recognition is sought;

 

4. if it is irreconcilable with an earlier judgment given in another Member State or in a third State involving the same cause of action and between the same parties, provided that the earlier judgment fulfils the conditions necessary for its recognition in the Member State addressed.

Is it possible to appeal a court decision to recognize and enforce a foreign court decision?

(i) Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (article 810 Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty:

As the Court of Appeal is the only court in Lithuania which is entitled to judge cases for recognizing and enforcing a foreign court decision, only cassation is possible by submitting a cassation to the Supreme Court. However, cassation does not suspend enforcement.

 

(iii) Judgments from a country belonging to the EU:

It is possible to appeal the judgment enforcing the Foreign court Decision; according to Article 43 of Council Regulation (EC) No. 44/2001, the decision on the application for a declaration of enforceability may be appealed by either party.

 

In Lithuania this appeal is called A Request to Reconsider and has to be lodged with the Court of Appeal within 1 month, if the party, in respect of which the court judgment is decided to be enforced, has a permanent residence in the Republic of Lithuania, and in 2 months, if the aforementioned party does not have a permanent residence in the Republic of Lithuania.

 

According to Article 44 of the Council Regulation (EC) No. 44/2001: "The judgment rendered on appeal may be contested only by the type of appeal referred to in Annex IV". In Lithuania this appeal is called cassation.

 

According to Article 44 of the Council Regulation (EC) No. 44/2011, "1. The court with which an appeal is lodged under Article 43 or Article 44 shall refuse or revoke a declaration of enforceability only on one of the grounds specified in Articles 34 and 35. It shall give its decision without delay. 2. Under no circumstances may the foreign judgment be reviewed as to its substance."

Can this appeal suspend the enforcement?

(i) Judgments from a country with which Lithuania has an international Treaty are governed by the terms of that Treaty (Article 810 Code of Civil Procedure).

 

(ii) Judgments from a country with which Lithuania has no international Treaty:

Initiation of appeal (which actually is cassation) proceedings does not suspend enforcement of the measures granted.

 

(iii) Judgments from a country belonging to the EU: Pursuant to article 46.1 of the Council Regulation (EC) No. 44/2011: "The court with which an appeal is lodged under Article 43 or Article 44 may, on the application of the party against whom enforcement is sought, stay the proceedings if an ordinary appeal has been lodged against the judgment in the Member State of origin or if the time for such an appeal has not yet expired; in the latter case, the court may specify the time within which such an appeal is to be lodged".

Are there any rules concerning recovery of the judicial costs incurred as a result of the enforcement application?

The debtor must pay for the costs and expenses caused by the enforcement procedure unless his appeal or opposition is accepted by the Court. However, judicial costs and expenses are adjudged only if the opposite party has asked for it.

 

V. RECOVERY OF THE DEBT

What types of assets are subject to enforcement of the court's judgment?

All movable and immovable property as well as claims and real property rights may be subject to enforcement by the court.

 

The following assets may not under any circumstances be subject to enforcement (Article 668 of Code of Civil Procedure):

 

• Household, work, studying items and other property which is necessary for a debtor or his family to survive, for professional occupation or studying.
• Amount not exceeding one minimal monthly salary set by the Government, all necessary children and disabled tackles.
• Recovery from state, municipality or budget bodies can be diverted only to the money belonging to them.
• Money received as EU or another international support for the project - during such project's performance period set in the EU law or international treaties of the Republic of Lithuania. This injunction is not applicable when the money is recovered by bodies controlling such projects as a result of infringing requirements of EU, Lithuanian law or international treaties on giving this money.

The following amounts may be enforced with some restrictions (article 736 of the Code of Civil Procedure):

 

Salaries and other pays not exceeding a minimal monthly salary (determined by the Government of Lithuania):

• Recovering maintenance, damages made by health injury or crimes, deprivation of life of the wage-earner - up to 50 percent, unless otherwise stated by the court or law;
• All other kinds of pays, if it is not stated otherwise by court or by law – 20 percent;
• Enforcing few writs of execution – up to 50 percent.

2. Salaries and other pays exceeding a minimal monthly salary (determined by the Government of Lithuania) – 70 percent, if is not stated otherwise by law or by court.

 

If the debtor maintains non employable family members, a bailiff can reduce the garnishing part mentioned in a previous clause by 10 percent for each encumbrance. By reducing in this way, the part set by the court or by the law cannot be reduced.

 

Where the party initiating the enforcement does not know what assets are owned by the debtor, the bailiff who is enforcing the court judgment must find all the assets.

 

VI. OTHER ISSUES OF INTEREST IN YOUR JURISDICTION

 

Any other issues of interest in your jurisdiction

There are some categories of foreign court judgments that do not require recognition, for example, judgments on non-property disputes between Lithuanian citizens, except when this foreign court judgment is a base to register the marriage or perform any other public registration.