backKing & Spalding represented Motorola in the Court of Appeal in England in relation to a long-running dispute regarding theft of trade secrets.
In a judgment handed down on December 19, the Master of the Rolls Sir Geoffrey Vos and Lord Justice Popplewell resolved two important questions relating to the enforcement of foreign judgments. First, the enforceability of a foreign judgment which comprises of both compensatory and multiplied sums, given the terms of s.5 of the Protection of Trading Interest Act (1980). Second, the appropriate relief where a foreign judgment already enforced in England & Wales is later overturned on appeal.
The Court of Appeal concluded that both the compensatory and multiplied amounts are unenforceable, including costs, fees and interest related to those amounts. This means that a foreign judgment will only be enforceable to the extent that it comprises of purely compensatory sums. Where a judgment consists of a compensatory amount that is then multiplied (i.e. not pure compensatory damages but rather associated with a multiplied amount) it will not be enforceable. One practical result of this is that Plaintiffs in anti-trust, IP, fraud and other claims before the US courts pursuant to statutes (e.g. RICO, DTSA, Sherman Act and similar) that provide for doubling or trebling of compensatory amounts will not be able to enforce any aspect of those judgments in England.
Where a foreign judgment has been recognised in England but then set-aside following a successful foreign appeal, the preferred course is to stay, rather than set-aside the English judgment. The Court of Appeal addressed the competing powers under CPR 3.1(7) and CPR40.8A and concluded that the principle of finality ultimately prevailed. The facts of this case, which involved a successful appeal on quantum with a remand to the first instance court to re-assess quantum, were no doubt influential in this conclusion. This issue had not previously been addressed by the English Courts and provides important guidance given the well-established rule that a foreign judgment will, subject to the satisfaction of the usual requirements, be enforceable in England & Wales despite the fact that it is subject to an appeal.
King & Spalding acted for Motorola, with Sarah Walker, Jessica Trevellick and Caspian Heeler instructing Tom Sprange KC and Kabir Bhalla alongside Gayatri Sarathy (Blackstone Chambers). Jon Green also provided assistance.