News
New International Rules to Cut Legal Costs for UK Businesses
From 1 July 2025, UK businesses involved in cross-border disputes will benefit from a major change in how their legal judgments are recognised overseas, thanks to new international rules being introduced under the 2019 Hague Convention.
The UK has officially signed up to the Convention, which means that if a UK court makes a judgment in a civil or commercial case involving a business in another participating country, that decision will be far easier to enforce abroad. As a result, businesses should save time, money, and legal uncertainty.
What’s Changing?
Currently, even when a UK business wins a case in a UK court, getting that judgment recognised and enforced in another country can be complex and slow. In some cases, it can even lead to near-identical legal proceedings starting all over again in the foreign country.
Under the new rules:
· UK civil and commercial court judgments will be recognised and enforced automatically in other countries that have signed the Hague 2019 Convention.
· The same will apply in reverse - judgments from participating countries will be recognised in UK courts.
· This will apply to proceedings that begin on or after 1 July 2025.
Why It Matters for Business
For UK companies trading internationally, particularly SMEs, this change could reduce the cost and complexity of resolving disputes across borders. Instead of navigating multiple legal systems, businesses will have one consistent set of rules that simplify enforcement.
It also makes the UK more attractive as a base for resolving disputes, reinforcing the reputation of UK courts and legal professionals in the global legal market.
The Convention is already in use by 29 countries including EU member states, Ukraine, and Uruguay, with more expected to join in the future.
Looking Ahead
Businesses involved in regular cross-border activity - especially those drafting contracts or managing overseas disputes - should be aware of the upcoming changes.
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