Us Court Rulings: Are They Valid In Bahrain?

Bahrain is a signatory to various multilateral treaties for the reciprocal recognition and enforcement of foreign judgments. These include the Hague Convention for the Pacific Settlement of International Disputes 1907, the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, and the Gulf Cooperation Council Convention for the Execution of Judgments, Delegations and Judicial Notifications 1995.

As a general rule, the Bahraini courts will enforce foreign judgments without requiring prior recognition proceedings as long as the judgment originates from a country that is also a signatory to one of the same treaties. Where reciprocal recognition is not established via a treaty between Bahrain and the foreign country, the recognition of foreign judgments is governed by Decree-Law No. 22/2021.

Bahrain was the first country to offer the Free Arbitration Zone and the first to introduce the idea of statutory arbitration for commercial and financial disputes. Bahrain's arbitration institutions have gained popularity in the Gulf region due to their flexibility, confidentiality, and speed of enforcement.

Bahrain's recognition of foreign judgments

Enforcement of Foreign Judgments in Bahrain

Bahraini courts will enforce foreign judgments without prior recognition proceedings if the judgment originates from a country that is a signatory to the same treaties as Bahrain. The courts have discretion in this matter, particularly when the relevant convention does not provide a specific procedure for recognition.

Reciprocal Recognition Treaties

Bahrain has signed several bilateral and multilateral recognition treaties, including:

• The Hague Convention for the Pacific Settlement of International Disputes (1907)
• The Convention on the Settlement of Investment Disputes between States and Nationals of other States (1965)
• The Riyadh Arab Agreement for Judicial Cooperation (1983)
• The Gulf Cooperation Council (GCC) Convention for the Execution of Judgments, Delegations, and Judicial Notifications (1995)
• The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958)
• Various bilateral investment treaties and free trade agreements

Recognition Process

The recognition procedure involves presenting the foreign judgment before the Bahraini High Civil Court, along with a request for recognition and an enforcement order. The applicant must also pay the prescribed court fees. Once recognized, the enforcement of the judgment is undertaken by the Bahraini Court of Execution.

Requirements for Recognition

The basic mandatory requirements for recognition of a foreign judgment in Bahrain include:

• The courts of Bahrain are not competent to hear the case, and the foreign courts that passed the judgment have jurisdiction according to international rules.
• The defendants in the case were appropriately summoned and properly represented.
• The judgment has become final according to the law of the court that issued it.
• The judgment does not conflict with any previous judgment or order passed by Bahraini courts and does not violate public order or morality.

Non-Enforced Foreign Judgments

Under the Riyadh Convention, judgments against governments or related to their administrative duties are not recognized. Recognition is also denied if it would contradict Islamic law, the constitution, or public order, or if the defendant was not duly summoned.

Costs and Timeframe

The enforcement of foreign judgments in Bahrain is primarily handled by the execution court, and there is no distinction made between judgments from different countries or those enforced under relevant treaties. The timeframe for enforcement depends on the availability of the debtor's assets, with liquid assets being the fastest option.

Bahrain's recognition and enforcement of foreign judgments are governed by specific laws and treaties. The process involves presenting the judgment to the High Civil Court, followed by enforcement by the Court of Execution. The recognition of foreign judgments in Bahrain is subject to specific requirements and considerations.

The role of the High Civil Court

The High Civil Court in Bahrain is a part of the country's Civil Courts system, which also includes the Lower Civil Court, the Court of Cassation, the High Civil Appeals Court, the Court of Urgent Matters, and the Court of Execution. The Civil Courts have jurisdiction over all commercial, civil, and administrative disputes, as well as disputes related to the personal status and domestic relations of non-Muslims.

The High Civil Court has jurisdiction to hear all civil cases that do not fall within the jurisdiction of the Lower Civil Courts. It also has jurisdiction over disputes concerning the personal status of non-Muslims. The High Civil Court can resolve administrative disputes between individuals and the government or public authorities, and it can adjudicate incidental pleas referred by the Lower Civil Courts.

In terms of foreign judgments, the High Civil Court plays a crucial role in their recognition and enforcement. Bahrain is a signatory to several bilateral and multilateral recognition treaties, including the Hague Convention for the Pacific Settlement of International Disputes, the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and the Gulf Cooperation Council Convention for the Execution of Judgments.

If there is no reciprocal recognition established via a treaty between Bahrain and the foreign country, the recognition of foreign judgments falls under the jurisdiction of the High Civil Court. A party seeking recognition must apply to the High Civil Court, providing evidence that the litigants in the foreign case were duly summoned and properly represented. The High Civil Court will evaluate whether the foreign court that handed down the judgment was competent according to the international rules of jurisdiction in that country. It will also assess whether the judgment is final and enforceable in the originating country and whether it conflicts with Bahraini public order, morality, or a previous judgment.

Once the High Civil Court recognizes a foreign judgment, the Bahraini Court of Execution takes over the enforcement process. The Court of Execution can issue a range of orders to enforce the judgment, including specific performance, attachment of assets, sale of property, imprisonment for non-cooperation, and precautionary measures.

The role of the Court of Execution

• Judgments and decisions made by the courts
• Arbitral awards after ordering their enforcement
• Authenticated deeds
• Conciliation reports that are ratified by the courts
• Any other documents characterised by law

The Court of Execution enforces these writs under the supervision and control of the Judge of the Court of Execution, with the assistance of private execution persons. The Court of Execution does not entertain objections to the judgments themselves but seeks clarification from the relevant court if any part of a judgment appears practically unenforceable.

Once a foreign judgment has been recognised, the Court of Execution can make the following orders:

• Specific performance and associated fines
• Attachment on bank accounts, property and movable assets, or lifting of such attachment
• Sale of property under attachment
• Imprisonment of a party who obstructs the execution procedures or fails to cooperate
• Payment of amounts collected from the judgment debtor to the judgment creditor, or surrender of the disputed items
• Precautionary or provisional measures such as freezing orders, appointment of a guardian, custodial or judicial receiver over assets, and orders to prevent assets from being removed from the jurisdiction
• Authorising the use of force and seeking assistance from the police if necessary

The limitations of Decree-Law No. 22/2021

Decree-Law No. 22/2021, also known as the Promulgation of the Execution Law in Civil and Commercial Matters, governs the treatment of foreign judgments and the limitations on their enforcement in Bahrain. Here are some key limitations outlined by this decree:

• Recognition of Foreign Judgments: The recognition of foreign judgments may be subject to the principles of Shariah law. If the enforcement of a foreign judgment contradicts Shariah law provisions in Bahrain, it may not be recognized.
• Reciprocal Recognition: Bahrain's courts will enforce foreign judgments without requiring prior recognition proceedings if the judgment originates from a country that is also a signatory to the same treaties. However, this is subject to the courts' discretion, especially when the relevant convention, such as the Gulf Cooperation Council (GCC) Convention, does not provide a specific procedure for recognition.
• Application to the High Civil Court: When reciprocal recognition is not established through a treaty, the recognition of foreign judgments falls under the jurisdiction of the High Civil Court. The defendant can submit a defence, and the court may re-examine the issues.
• Basic Requirements for Recognition: The decree outlines specific requirements for the recognition of foreign judgments. These include establishing that the Bahraini courts are not competent to hear the case, ensuring that litigants were duly summoned and represented, confirming the finality of the judgment, and verifying that the judgment does not conflict with previous decisions or breach public order or morality in Bahrain.
• Judicial Proceedings and Due Process: There is no requirement for the judicial proceedings in the foreign jurisdiction to correspond with due process in Bahrain for a judgment to be enforceable. However, it is mandatory that litigants were duly summoned and properly represented, and evidence of this must be provided to the High Court.
• Personal and Subject-Matter Jurisdiction: The Bahraini High Civil Court evaluates the competency of the foreign courts that handed down the judgment, including their personal and subject-matter jurisdiction. The court will not retry the merits of the case if the judgment meets the requirements outlined in the decree.
• Service of Notice: The defendant must have been properly served with notice according to the laws of the foreign jurisdiction. Evidence of this must be presented to the Bahraini High Civil Court.
• Fairness of Foreign Jurisdiction: The Bahraini courts will not consider the relative inconvenience of the foreign jurisdiction to the defendant when deciding on recognition and enforcement applications. Their primary concern is whether the foreign court had jurisdiction to hear the matter.
• Examination of the Foreign Judgment: The Bahraini High Civil Court will evaluate the foreign judgment on certain terms, including whether it breaches public policy. Reciprocity is a factor, and the merits and arguments of the judgment are not typically assessed by Bahraini courts.
• Conflicting Decisions: The Bahraini execution court will not enforce any foreign judgment that conflicts with a previous decision or order of a Bahraini court.
• Enforcement Against Third Parties: The effectiveness of enforcement against a third party is at the discretion of the execution court. It depends on whether the third party was duly summoned and properly represented.
• Alternative Dispute Resolution: If the parties had an agreement to use alternative dispute resolution, the Bahraini High Civil Court must be satisfied that the foreign courts followed the correct procedures and forum.
• Recognition of Partial Judgments: The decree allows for the recognition of partial judgments. If the award is recognized, a party must seek enforcement from a Bahraini execution court, which will execute the judgment as issued without alterations.
• Effect of Sanctions: Sanctions can be considered a part of a country's public policy. The Bahraini courts will evaluate whether enforcing a judgment against or in favour of a sanctioned entity or individual would contradict Bahrain's public policy. They have the discretion to not enforce such judgments if specific requirements under the decree are not met.
• Currency, Interest, and Costs: In recognizing a foreign judgment, the Bahraini courts will determine the judgment amount in the currency of the originating country or its equivalent in Bahraini dinars. Interest is recoverable, and rates are enforced according to the provisions set out in the judgment.
• Right to Appeal: A party can appeal a foreign judgment enforced by the Bahraini Execution Court by submitting an application to the Bahraini High Court.

The enforcement of foreign judgments in Bahrain

Bahrain is a signatory to several bilateral and multilateral recognition treaties, including:

• The Hague Convention for the Pacific Settlement of International Disputes 1907
• The Convention on the Settlement of Investment Disputes between States and Nationals of other States 1965
• The Riyadh Arab Agreement for Judicial Cooperation 1983 (the Riyadh Convention)
• The Gulf Cooperation Council Convention for the Execution of Judgments, Delegations and Judicial Notifications 1995 (the GCC Convention)
• The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the New York Convention)
• Various bilateral investment treaties and free trade agreements

As a general rule, Bahraini courts will enforce foreign judgments without requiring prior recognition proceedings, as long as the judgment originates from a country that is also a signatory to one of the same treaties. However, this is subject to the discretion of the Bahraini courts, particularly when the relevant convention does not provide a specific procedure for recognition.

Where reciprocal recognition is not established via a treaty between Bahrain and the foreign country, the recognition of foreign judgments is governed by Article 16 of Decree-Law No. 22/2021 on the Promulgation of the Execution Law in Civil and Commercial Matters. In this case, foreign judgments may still be recognised following an application to the High Civil Court. This is essentially a fresh claim, and the court may choose to re-examine the issues if the defendant submits a defence.

The primary source of law regarding the enforcement of foreign judgments in Bahrain is Decree-Law No. 22/2021. This law governs the treatment of foreign judgments and the limitations on their enforcement. The recognition of foreign judgments may be subject to the principles of Sharia law, to the extent that enforcement may risk contradicting Sharia law provisions in Bahrain.

Bahraini courts will not enforce a foreign judgment unless the foreign court that handed it down is competent according to the international rules of jurisdiction set down in the laws of that country. The judgment must also be final according to the law of the jurisdiction of the court that issued it. Subject to this and other public policy requirements, Bahraini courts would be willing to enforce a foreign judgment.

All judgments must be final to be recognised and enforced by Bahraini courts. Provided that a certificate of final judgment or enforceability can be obtained from the country in which the judgment was obtained, default and summary judgments can also be recognised and enforced in Bahrain.

Once the foreign judgment is recognised, a judge of the execution court may issue orders and decisions generally available for the enforcement of domestic judgments, including:

• Specific performance and associated fines
• Placement of attachment on bank accounts, properties, and movable assets or lifting of such attachment
• Sale of property that is under attachment
• Imprisonment of a party who obstructs the execution procedures or fails to cooperate with the execution proceedings
• Payment of amounts collected from the judgment debtor to the judgment creditor or surrender of the disputed items to the latter party
• Precautionary or provisional measures such as freezing orders, appointment of a guardian, custodial or judicial receiver over assets, and orders to prevent assets from being removed from the jurisdiction
• Authorising the use of force whenever required and seeking the assistance of the police, if necessary

Applications for recognition of foreign judgments and enforcement orders are made to the High Court. Recognised judgments or enforcement orders are then enforced, together with local court judgments, by the court of execution.

The recognition procedure is started by bringing the foreign judgment before the Bahraini High Civil Court, requesting that such judgment is recognised, paying the prescribed court fees, and requesting an enforcement order. Once recognised, enforcement of the judgment is then undertaken by the Bahraini Court of Execution. Domestic authorities must execute the foreign judgments as issued (i.e., not in part) provided that they do not constitute a breach of public policy.

In accordance with Articles 22 and 23 of Decree-Law No. 22/2021, the role of the execution court is to enforce the judgments received without entertaining objections by a party to the judgment itself. If there appears to be any practically unenforceable element of a judgment, an execution court judge must not offer any opinion as to the resolution thereof and shall instead seek a clarification of the relevant section in writing from the court that handed down the judgment.

Bahrain was the first country to offer a "Free Arbitration Zone" and the first to introduce the concept of statutory arbitration for commercial and financial disputes. Legislative Decree No. (30) for the year 2009 With Respect To the Bahrain Chamber for Economic, Financial and Investment Dispute Resolution (the "Decree") gives parties who are interested in international arbitration the option of holding the arbitration in Bahrain without concern that the courts of Bahrain might interfere with, or set aside, the resulting award, as long as the parties seek to enforce the award only in another country.

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