Owens Bank Ltd v Bracco

A foreign judgment may be challenged in England on the ground that it was obtained by fraud, even if the allegation of fraud was raised and rejected in the foreign court, and the defendant need not produce new evidence.

Citation
[1992] 2 AC 443
Court
House of Lords
Year
1992
Subject
Conflict of Laws
Topic
Recognition and enforcement of foreign judgments

Facts

Owens Bank obtained a judgment in St Vincent against Mr Bracco, an Italian businessman, for a large sum lent under loan agreements which Mr Bracco said were forgeries. The bank sought to register the judgment in England under the Administration of Justice Act 1920. Mr Bracco opposed registration, arguing that the judgment had been obtained by fraud, because the documents were forged and the bank's witnesses had committed perjury, although the St Vincent court had rejected his allegations of forgery.

Legal principle

The House of Lords held that Mr Bracco was entitled to challenge the judgment on the ground of fraud, and that he was not required to produce fresh evidence which had not been available in the foreign proceedings. Lord Bridge said that the English courts had long allowed a foreign judgment to be impeached for fraud, even if this involved a retrial of issues which had been considered by the foreign court, following Abouloff v Oppenheimer, and that the 1920 Act did not change that rule. Although the rule was anomalous compared with the treatment of English judgments, it had been settled for so long that it was for Parliament to change it.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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