The Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region (the "New Arrangement") took effect both in Mainland China and HKSAR on January 29, 2024. Recently, the Foshan Intermediate People's Court applied the New Arrangement to recognize and enforce a Hong Kong judgment. This marks the first application of the New Arrangement in Guangdong Province.
The plaintiff, a Mainland resident, filed a lawsuit with the HKSAR High Court over a contractual dispute with a Mainland China company and a Hong Kong company, demanding payment of overdue rent, investment funds, and interest. On July 26, 2024, the High Court of HKSAR ruled in favor of the plaintiff. As the defendants held assets in Foshan, Guangdong, the plaintiff applied to the Foshan Intermediate People's Court on October 11, 2024 for recognition and enforcement of the HKSAR judgment. The Foshan court ultimately granted recognition and enforcement of the Hong Kong judgment on the grounds that the judgment in question:
- Constituted an effective judgement issued after the New Arrangement took effect;
- Complied with all conditions for recognition and enforcement under the New Arrangement; and
- Did not contravene the basic principles of the law or public interests of Mainland China.
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