Legal Definitions - doctrine of obligation

The doctrine of obligation is a principle within English law that addresses how financial judgments from foreign courts are treated domestically. It establishes that if a competent court in another country has legally determined that one person owes a specific sum of money to another, that financial liability transforms into a legal obligation that can be enforced through a debt action within the English legal system.

In practice, this means that once the party seeking enforcement presents valid proof of the foreign judgment, the responsibility then shifts to the defendant to provide reasons why this obligation should not be fulfilled in England. This principle is sometimes simply referred to as "obligation."

• Example 1: International Business Debt

  A British manufacturing company, "Innovatech Ltd.," failed to pay its Canadian software supplier, "Code Solutions Inc.," for a custom enterprise resource planning system. Code Solutions Inc. successfully sued Innovatech Ltd. in a Canadian court, which issued a judgment ordering Innovatech Ltd. to pay CAD $250,000. If Innovatech Ltd. does not pay, Code Solutions Inc. can invoke the doctrine of obligation in England. By presenting the Canadian court's judgment to an English court, Code Solutions Inc. can initiate a debt action, treating the CAD $250,000 as a legally enforceable debt under English law. This allows Code Solutions Inc. to pursue collection actions against Innovatech Ltd.'s assets located in England.

• Example 2: Unpaid Inheritance from Abroad

  Eleanor, a UK citizen, was legally entitled to a share of an inheritance from her late aunt's estate in France. After a dispute, a French court ruled that Eleanor's cousin, who also resides in England, was wrongfully withholding Eleanor's portion of the inheritance, amounting to €75,000. The French court issued a judgment ordering the cousin to pay this sum to Eleanor. If the cousin refuses to comply, Eleanor can use the doctrine of obligation. She can present the French court's judgment to an English court, which will then recognize the €75,000 liability as a valid debt under English law, enabling Eleanor to enforce the judgment against her cousin's assets in the UK.

• Example 3: Damages from a Foreign Accident

  Mr. Chen, a Chinese national, was severely injured in a road accident in Spain caused by a British tourist, Ms. Davies. Mr. Chen sued Ms. Davies in a Spanish court and was awarded €150,000 in damages for his injuries and medical expenses. Ms. Davies returned to England without paying the judgment. Mr. Chen can utilize the doctrine of obligation. He would present the Spanish court's judgment to an English court, which would then recognize the €150,000 liability as a valid debt under English law. This allows Mr. Chen to take steps to enforce the judgment against Ms. Davies' assets in England, even though the original legal proceedings and judgment took place in Spain.