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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Societe Lacoste S.A. v. Keely Group Ltd. [1998] IEHC 157; [1999] 3 IR 534; [1999] 1 ILRM 510 (3rd November, 1998) URL: http://www.bailii.org/ie/cases/IEHC/1998/157.html Cite as: [1999] 1 ILRM 510, [1998] IEHC 157, [1999] 3 IR 534 |
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1. The
Order of the Master dated the 28th July, 1995 was an Order enforcing the
judgment of the Court of Bordeaux in this jurisdiction and his Order of the
30th July, 1996 was a further Order providing for the enforcement in this
jurisdiction of the interest due on such Order. Both Orders were accompanied
by mareva injunctions against the Defendant.
3. Counsel
are agreed that Article 34 of the Transitional Provisions contained in title V
of the Convention (which is to be found in the third schedule to the
Jurisdiction of Courts and Enforcement of Judgments Act, 1993) is the article
of primary relevance to the Appellants' first submission. That article
provides as follows:
4. Counsel
for the Appellant submits that the meaning of sub-Article 1 is that the
Convention must have come into force in both France and Ireland at the time of
the institution of proceedings (in France) for the Master to have jurisdiction
to enforce the judgment as he purported to do.
5. Counsel
for the Respondent says that the sub-Article means only that the Convention
must have been incorporated into domestic law in France at the time of the
making of the Order in that country and incorporated into the domestic law in
this country at the time of the making of the Master's Orders.
11. From
the foregoing it can be seen that when the proceedings were instituted the
Convention had been adopted into domestic law in France but not in Ireland:
when the judgment at first instance was given the same applied, but when the
judgment of appeal was given the Convention had been adopted into domestic law
both in France and in Ireland.
12. Accordingly,
if the Appellant is correct in saying that the Convention applies only where it
had been adopted into domestic law in both the country where the original Order
was made and where it is sought to be enforced ("the State addressed") before
the institution of those proceedings in the former, then so far as this
submission goes the Master had no jurisdiction, because the Convention did not
apply: if, on the other hand it is necessary only that the Convention be
incorporated into domestic law in the former country before the initiating
proceedings and in the State addressed before the application to enforce them
then the Master had jurisdiction.
13. On
the question of jurisdiction, however, the Respondents have another string to
their bow. They say that the meaning of Article 34(3) is that the Convention
will apply in any event so as to confer jurisdiction on the Master in the
present case if it can be shown that on the date that the judgment was given
(which the Master enforces) the Convention had been adopted in both the
originating country and the country addressed and that the jurisdiction was
founded upon rules which accorded with the provisions of Title II as amended.
This would apply if the judgment of the appeal court is the date on which the
judgment was given, because on 14th June, 1990 the Convention had been adopted
into both French and Irish domestic law.
14. The
rules in Title II, as relevant to the present case, require that the
jurisdiction in France be founded upon an agreement conferring such
jurisdiction in writing or evidence in writing or on the other bases set out in
Article 17 of the Convention (which itself is set out in the first schedule to
the Act of 1993). Moreover, in such a case, the judgment would not be
recognised where it was given in default of appearance (as in this case) if the
Defendant was not duly served with the document instituting the proceedings in
sufficient time to enable it to arrange for its defence. (See Article 27 of
the Convention).
15. In
the present case there is evidence of service which gave the Defendant almost
nine weeks to enter an appearance and there is also evidence of a standard form
agreement between the parties which included Article 11 thereof, (in the
English translation) a provision that "in the event of a dispute, the Bordeaux
Commercial Court shall be the sole jurisdiction, even if there are a number of
Defendants."
16. In
my view the service of the relevant documents on the Defendant is established
and I consider that nine weeks is sufficient time to enable the Defendant to
arrange for his defence (particularly as the evidence is that the writ
instituting the proceedings in France indicated that if the Defendant had
difficulty preparing its defence in this period of time then had the Defendant
entered an appearance and sought an extension of time this would have been
granted).
17. The
Appellant has filed an Affidavit stating that it had no knowledge of the
provisions of clause 11 and that therefore there is no "agreement conferring
jurisdiction... in writing or evidenced in writing" as contemplated by Article
XVII of the Convention with the result that the Convention does not apply.
18. I
am unable to agree with that submission. The fact that the deponent on behalf
of the Defendant may not have been aware of the terms of the written agreement
does not mean that such agreement does not bind the parties. The relevant
article requires only that there be an agreement conferring jurisdiction in
writing or evidenced in writing. I consider that such an agreement does exist
and the fact that one or other of the parties may or may not have been aware of
it in the sense of actually conscious either that it existed or of its terms,
does not mean that the agreement does not exist. Commercial relations are
governed by written agreements and standard terms which are frequently not
consulted unless and until a difficulty arises. This does not mean that they
do not exist, even if it can truly be said that the parties are not aware of
them.
19. Subject
to one further point which I will attend to in a moment, on the foregoing
basis, I am of the view that the Master did have jurisdiction pursuant to the
provisions of Article 34(3), because it can be shown that the judgment, which
he enforced, was given after the date of entry into force of the Convention
between France and Ireland (notwithstanding that the proceedings were
instituted before that date) and jurisdiction (in Bordeaux) was founded upon
rules which accorded with the provisions of title II. Jurisdiction was founded
in accordance with those provisions because service, adequate time for
preparation of defence, and a written agreement conferring jurisdiction satisfy
the requirements of title II.
20. The
one outstanding point is whether the judgment of the Court in Bordeaux dated
the 14th June, 1990 (by which time the Convention had been adopted into
domestic law in both Ireland (on the 1st June, 1988) and France (on the 1st
January, 1973)) was a judgment for the purposes of Article 34(3) or whether
that can only truly be said of the originating judgment in default of
appearance dated the 12th July, 1985 when the Convention had not been adopted
into Irish domestic law.
22. That
is a very wide definition and in my view, in the absence of authority to the
contrary, is sufficient to capture the Order of the second chamber of the
Appeal Court of Bordeaux dated the 14th June, 1990 which confirmed the original
order against the Defendant/Appellant and which according to the text of that
order made that judgment final against the Defendant.
23. In
those circumstances I consider that even if the Appellant is correct in
relation to its submission on Article 34(1) - and I do not have to decide this
point one way or the other - the Master had jurisdiction under Article 34(3) in
the circumstances which I have outlined above.
24. In
relation to the Appellant's second point to the effect that the judgment
should, notwithstanding the foregoing, not be recognised because (it having
been given in default of appearance) the Defendant did not have sufficient time
to enable it to arrange for its defence. As stated my view is that the
original period of almost nine weeks was indeed sufficient time and I cannot
agree with the submission of Counsel for the Appellant that the date of the
adoption into Irish domestic law (the 1st June, 1988) has relevance in this
context. The reason that I take this view is because I consider that the
provisions of Article 34(3) are satisfied if jurisdiction was founded upon
rules which accord with the provisions of Title II which in the present case
they have.
25. With
regard to the third point to the effect that the order of the Master should
have recited that France was a contracting State, I consider that the test by
reference to which the validity of the Master's order must be assessed by me in
the context of this submission was set out in the judgment of Griffin J. in
Rhatigan
v. Textiles Confecciones Europeas
[1990]: ILRM: 825 at page 834 and is whether the Plaintiff could have been
under any misapprehension as to the judgments on foot of which the enforcement
order was made by the Master, or of the Court of the State in which those
judgments were recovered. I cannot see how any such misapprehension could have
arisen in the present case. Furthermore, Counsel for the Respondents submits
that if the Master's order were to fall on this ground it would be open to his
client to re-apply to the Master and have this matter of form corrected. There
is no evidence of mis-apprehension and even assuming that such a recital is a
necessary requirement in the order of the Master, I consider that the orders in
this case should not be set aside or vacated on this ground.
26. From
the foregoing it follows that the Master was entitled to authorise enforcement
of the judgments and accordingly I would refuse to set them aside.