Legalization and Enforcement of Foreign Court Judgments in Georgia: A Practical Guide

Obtaining a court decision in favor of the claimant is an important step in protecting their rights. However, without its enforcement, the decision remains just a formality. Effective enforcement of the court ruling ensures the actual restoration of the violated right and confirms the effectiveness of the judicial system.
If the defendant does not have assets or a permanent representation in the country where the court decision was made, the claimant should:

• Identify the jurisdiction where the defendant has assets: This could be the defendant's country of citizenship or the country where their property is located.
• Initiate the procedure for recognizing and enforcing the court decision in the relevant jurisdiction: This will allow the claimant to approach local authorities for the compulsory enforcement of the decision using the defendant's available assets.
• If the defendant is a Georgian citizen, a Georgian company, or has assets in Georgia, the claimant can apply to the Georgian courts for the recognition and enforcement of the foreign court decision. This opens the way for satisfying the claimant’s  claims through the defendant's assets located in Georgia.

Georgia recognizes and enforces court decisions from foreign countries based on international treaties and the principle of reciprocity. The following decisions are accepted for enforcement:

• The decisions of state courts: If relevant international treaties exist or based on the principle of reciprocity.
• Arbitral awards: Georgia is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which allows the enforcement of international arbitration decisions.

However, decisions of magistrates' courts or other bodies that do not have judicial authority in the country where they were issued may not be subject to recognition and enforcement in Georgia.

The procedure for the recognition and enforcement of foreign court judgments in Georgia includes the following stages:​

• The submission of the application to the Supreme Court of Georgia: The application must include a request for the recognition and enforcement of the foreign court judgment.
• Submission of the required documents (all documents must be provided in Georgian, and the translations of the documents must be notarized):
• A certified copy of the final court judgment with an apostille or consular legalization,
• A document confirming the impossibility of enforcing the court judgment in the country where it was issued,
• Evidence of the defendant's presence or the location of assets that may be used to enforce the court judgment within the territory of Georgia,
• Consideration of the application: The Supreme Court of Georgia considers the application within six months, usually without summoning the parties.
• Issuance of a decision: In the absence of grounds for refusal, the court issues a decision to recognize and enforce the foreign court judgment.
• Costs: The state fee is charged only in the case of the legalization of an arbitration decision and amounts to 150 GEL. In the case of the legalization of a court decision, the creditor is exempt from paying the fee. The fee for provisional measures is 50 GEL.

The grounds for refusing the legalization of foreign court decisions in accordance with Article 68 of the Law "On Private International Law" are:

• Contradiction to the public order of Georgia: If the enforcement of the decision contradicts the fundamental principles of Georgian legislation.
• Lack of proper notification of the defendant: If the defendant was not properly notified of the court proceedings.
• ​Exclusive jurisdiction of Georgian courts: If the case falls under the exclusive jurisdiction of the courts of Georgia.

During the consideration of the application for the recognition of a foreign court decision in Georgia, the claimant has the opportunity to submit a motion to the court for the application of provisional measures. These measures aim to prevent the defendant from alienating or concealing their property, which could hinder or make it impossible to enforce the court decision in the future. The Supreme Court may apply the following provisional measures:

• Seizure of property: Imposing a seizure on the movable and immovable property of the defendant, including the freezing of funds in bank accounts.
• Prohibition on certain actions: Restricting the defendant from disposing of their property or carrying out certain transactions.

The motion for the adoption of provisional measures is considered within one day without summoning the parties.

After the recognition and enforcement of a foreign court decision in Georgia, the stage of enforcement proceedings begins. The purpose of this stage is the actual satisfaction of the claimant's demands through the defendant's property.
The main stages of enforcement proceedings are:

1. Issuance of the enforcement order: Based on the court's decision, an enforcement order is issued to the claimant, which serves as the basis for initiating enforcement actions.
2. ​Submission of the enforcement order to the National Bureau of Enforcement: This is the state body responsible for carrying out enforcement actions in Georgia.
3. ​Carrying out enforcement actions: The enforcement officers take measures to identify and seize the defendant's property, including the attachment and sale of assets, withholding funds from bank accounts, and other actions provided by law.

The duration of enforcement proceedings depends on the specific circumstances of the case, including the volume and nature of the defendant's property, their cooperation with enforcement officers, and other factors. The costs of enforcement proceedings include a state fee, which is 2% of the claim amount, but no less than 50 GEL, as well as possible additional expenses related to carrying out enforcement actions.

During enforcement proceedings, court officers seize the defendant's funds held in Georgian bank accounts, as well as the defendant's property—real estate, vehicles, shares/stocks.

Seizure of property involves its valuation by an independent appraiser and its sale at auction. Auctions are public, and any interested party can participate in them.

The funds collected in favor of the claimant are to be transferred to their bank account opened in a Georgian bank.

The procedure for the recognition and enforcement of foreign court decisions in Georgia is a complex series of actions aimed at ensuring the protection of the rights and legitimate interests of the claimant. Understanding the specifics of this procedure, including the application of provisional measures and the enforcement process, allows for the effective implementation of foreign judgments within Georgia's jurisdiction.

JUST Advisors has the necessary experience and expertise to assist clients at every stage of this process—starting from locating the debtor/defendant and their assets, to obtaining the awarded property or funds in the claimant's interest and transferring them to the claimant's accounts in foreign banks.