In the case of Motorola Solutions, Inc. & Anor v. Hytera Communications Corporation Ltd & Ors [2025] EWHC 257 (Comm), heard on January 23, 2025, the Court was faced with a crucial question: What happens to an English judgment that enforces a foreign ruling if that foreign judgment is successfully appealed?
The Court ruled that it had the discretion to set aside the order enforcing the English judgment under CPR 3.1(7), and chose to exercise this discretion. While acknowledging that circumstances for setting aside a final order are exceptionally rare, the Court deemed this case a valid exception. The specific and limited nature of the situation, where the final order relied on a foreign judgment that had been undermined by an appeal in another jurisdiction, justified the Court’s decision.
This ruling carries significant implications for how foreign judgments are enforced in England, particularly for international businesses. An appeal on this judgment is scheduled for the Court of Appeal in January 2026, which will likely clarify future cases of this nature.
Motorola had initially pursued legal action against Hytera in the US, alleging intellectual property theft, trade secret misappropriation, and copyright infringement. In January 2021, Motorola secured a judgment in the US worth $543.7 million, including $136.3 million in “disgorged profits” under the US Copyright Act of 1976. Hytera, however, appealed the decision.
In July 2023, Motorola amended its claim in England, seeking the enforcement of the $136.3 million, based on the relevant portion of the US judgment. Hytera did not contest the claim for partial enforcement of this amount, as English law recognizes that a pending appeal does not prevent a foreign judgment from being deemed "final and conclusive" for enforcement purposes. Later that year, Hytera agreed to Motorola’s request for a summary judgment, which resulted in an English judgment for $136.3 million. However, Hytera also applied for a stay of execution, citing the possibility that the US judgment could be overturned on appeal. The Court granted the stay, contingent on Hytera paying $25 million into Court as security, pending the outcome of the US appeal.
On July 2, 2024, the US Court vacated the relevant portion of its judgment, sending the case back to a lower court for reassessment of the damages. In response, Hytera sought to have the English judgment set aside or permanently stayed.
The central issue in Hytera’s application was how to handle an English judgment based on a foreign ruling if that foreign judgment is later overturned on appeal. The Court, surprised by the lack of prior authority on this matter, determined that it had the power under CPR 3.1(7) to set aside the English judgment. In this case, the Court’s decision emphasized the rare and exceptional nature of the circumstances. The Court also ordered that the $25 million security payment be refunded to Hytera.
The Court recognized that a successful appeal of a foreign judgment is critical when determining whether to enforce the judgment in England, even if an English court has already issued a judgment based on that foreign ruling. While it could choose to uphold the English judgment regardless of the foreign appeal outcome, the Court found that the reversal of the US judgment fundamentally altered the situation.
In assessing the circumstances, the Court noted that Hytera had no reasonable steps it could have taken to protect itself from the reversal of the US judgment. Unlike in the Vodafone v. IPCom case, where the Court of Appeal ruled against overturning a final order due to Vodafone's failure to take preventive actions, the Court in this case found Hytera's position to be different. Here, Hytera’s situation reflected a dramatic change in circumstances, where the entire basis of the claim—the US judgment—had been reversed.
Ultimately, the Court’s judgment makes it clear that in rare and exceptional circumstances, an English judgment that enforces a foreign ruling can be set aside if the foreign judgment is later appealed successfully. However, it also emphasizes that such decisions depend on the specifics of each case, and not all appeals of foreign judgments will result in the setting aside of an English judgment.
This case highlights the complexity of international legal disputes, particularly when enforcement of foreign judgments is involved. Businesses must be diligent in understanding the legal risks and potential outcomes, consulting with legal advisors to ensure they are adequately protected throughout the process.