What is a Worldwide Freezing Order?
A Worldwide Freezing Order (also known as a WFO) is a precautionary measure allowing the freezing of assets and prohibiting their disposal while a civil or commercial dispute is resolved. This legal tool, commonly used in international conflicts, aims to prevent the defendant from disposing of their assets, thus ensuring compliance with a future judgment. In Spain, the enforcement of a WFO depends on the country of origin of the order, which determines the applicable regulatory framework.
Procedure for Recognising and Enforcing a WFO Issued by a Non-EU State
When a WFO is issued by a court outside the European Union (for instance, in the United States, United Kingdom, or Australia), its recognition and enforcement in Spain is governed by Law 29/2015 on international legal cooperation in civil matters (LCJIC). This process includes several stages, with the first and most essential being the exequatur process. If the issuing country is a signatory of the 2019 Hague Convention, the regulation partially simplifies certain requirements that must be considered.
Exequatur Procedure: Key to Enforcing the WFO
To enforce a WFO in Spain, an exequatur process is required, granting enforceability to a foreign ruling. This process must be initiated in the Court of First Instance corresponding to the defendant’s residence or, if not available, where the affected assets are located. In the exequatur procedure, the applicant must submit the required documentation and meet certain formalities for the WFO to be accepted.
Requirements and Documentation for Exequatur
The exequatur requires the applicant to present the following documents:
• Original or certified copy of the WFO.
• Proof of notification of the WFO to the defendant.
• Proof of finality of the decision.
• Spanish translation of all documents.
Can the Defendant Object to the Exequatur Application?
The defendant has the right to oppose the exequatur within 30 days from notification, arguing, for example, a lack of authenticity of the order or challenging the enforceability of the WFO. Once this process is completed, the Spanish court will make a final decision regarding the enforceability of the WFO in Spain.
Enforcement of the WFO in Spain
Once the exequatur is granted, the claimant can request freezing measures on the defendant’s assets, such as real estate or funds in bank accounts. This enforcement ensures that the defendant cannot dispose of these assets, thus protecting the creditor’s interests while the dispute is resolved.
In accordance with the Spanish Constitution, the Public Prosecutor’s Office will oversee the legality of the exequatur process.
Recognition and Procedure for Enforcing a WFO from an EU Member State
If the WFO originates from an EU member state, such as Ireland, the recognition and enforcement procedure in Spain follows Regulation (EU) No 1215/2012, known as the Brussels I bis Regulation. This regulation allows a more streamlined process than that established by the LCJIC, enabling the creditor quick and effective access to protection of their rights.
Documentation Required under the Brussels I bis Regulation
To request recognition and enforcement of a WFO under the Brussels I bis Regulation, the applicant must present:
• A certified copy of the WFO.
• The relevant certificate of enforceability (Annex I of the Regulation).
• A sworn Spanish translation of the documents.
The defendant may oppose recognition of the WFO on grounds such as contravention of Spanish public policy, if issued by default, or in cases of jurisdictional conflict.
Other Important Considerations
It is crucial to note that the Spanish court will not review the substance of the foreign ruling, only verifying that legal requirements for enforcement are met. Additionally, due to the precautionary nature of the WFO, enforcement in Spain only allows for a provisional freezing of the defendant’s assets, not a definitive enforcement.
Protection for the Creditor
Enforcing a WFO in Spain provides an effective protective measure for the creditor, preventing the defendant from disposing of their assets in a way that could hinder compliance with a future judgment.
At Ayuela Jiménez, we have a team specialised in transnational litigation issues with extensive experience in the enforcement of foreign rulings. We can assist creditors (or their solicitors) in enforcing a foreign judgment in Spain.
For any additional queries, please contact Eduardo Ayuela ([email protected] or [email protected]).
