English court allows enforcement of a foreign judgment debt against the debtor's pension
Published on 11th Sep 2024
Public policy reasons that judgment debts should be enforced apply equally to foreign and domestic judgments
The High Court, in the case of Cohen v O'Leary [2023], recently exercised its power under section 37(1) of the Senior Courts Act 1981 to grant an order giving the judgment creditor in a Jersey judgment (which had been registered in England) control of the judgment debtor's personal pension as a way of obtaining part-payment of the judgment debt.
The type of order sought by the applicants is referred to as a "Bacci" order, as it was a case of Bacci v Green [2023] that confirmed that the court's powers to grant injunctions under section 37(1) of the Senior Courts Act 1981 could be used in this way in relation to the enforcement of an English judgment.
Public policy reasons
Bacci held, at paragraph 28, that the exercise of the court's powers in this manner was justified by the very strong public policy that judgment debts should be enforced. In Cohen v O'Leary, the judge held that these underlying public policy reasons apply equally to foreign and domestic judgments.
The judge noted that the Jersey judgment is to be treated as a domestic judgment following registration.
Osborne Clarke comment
This judgment confirms that the Bacci order – a potentially important enforcement tool in a judgment creditor's arsenal – is equally available in support of the enforcement of registered foreign judgments as it is for domestic judgments. It is also a reminder to judgment creditors of the importance of thinking creatively and looking at all forms of asset held by the judgment debtor when devising enforcement strategies.
