Recognition and enforcement of foreign judgments in Switzerland: A comparison between the PILA and the Lugano Convention

As an internationally interconnected business location, Switzerland is regularly confronted with foreign court decisions. The question often arises as to whether and under what conditions a foreign judgment can be recognized and enforced in Switzerland. The legal basis for this can essentially be found in the Federal Act on Private International Law (PILA) of 18 December 1987 and the Lugano Convention of 30 October 2007. Both sets of rules define the recognition and enforcement of foreign judgments, but do not apply simultaneously, but rather depending on the country of origin of the judgment. With this in mind, this article provides an overview of the differences between the PILA and the Lugano Convention with regard to the recognition and enforcement of foreign judgments.

Areas of application

The Lugano Convention is a multilateral treaty concluded between Switzerland, the EU member states, Norway and Iceland. It applies to civil and commercial matters with cross-border implications between these contracting states.

The PILA, on the other hand, applies if the foreign judgment originates from a third country, i.e. neither from an EU state nor from Norway or Iceland.

Requirements for the recognition of foreign judgments

According to the Lugano Convention, a judgment issued in a Lugano Convention country must generally be recognized without any special procedure. Recognition can only be refused if certain exceptions apply, such as a violation of Swiss public policy, failure to hear the defendant or incompatibility with a judgment issued in Switzerland.

According to the PILA, a foreign judgment is to be recognized if the foreign authority was competent in the Swiss opinion, the defendant was granted the right to be heard, there is no violation of Swiss public policy and there is no recognizable abuse of rights. The PILA therefore places higher demands on the review of foreign judgments.

Enforcement of foreign judgments

A judgment that is recognized in accordance with the Lugano Convention can be declared enforceable in a simplified procedure. This procedure was significantly streamlined with the revision of the Lugano Convention in 2007, in particular by eliminating the exequatur procedure for certain titles.

The enforcement of a judgment under the PILA, on the other hand, requires a substantiated application to the competent Swiss court. The decision on enforcement is then made in summary proceedings and is generally subject to appeal in accordance with the Swiss Code of Civil Procedure.

Conclusion

The recognition and enforcement of foreign judgments in Switzerland is governed by two different sources of law: the Lugano Convention for judgments from contracting states and the PILA for judgments from third countries. While the Lugano Convention generally facilitates recognition and provides for a streamlined enforcement procedure, the PILA requires a more detailed examination.

For companies and private individuals with cross-border relationships, it is therefore crucial to clarify at an early stage which legal framework applies. Sound legal advice can help to significantly reduce the time and costs involved in enforcing claims from abroad.