In the case of Motorola Solutions, Inc & Anor v. Hytera Communications Corporation Ltd & Ors [2025] EWHC 257 (Comm) (23 January 2025), the English Court had to address the issue of what happens when a foreign judgment that has been enforced in England is later overturned on appeal in the foreign jurisdiction.
The Court ruled that it has the power to set aside the order enforcing an English judgment under CPR 3.1(7), a provision that allows courts to vary or revoke orders in rare and exceptional cases. Although it acknowledged that it is uncommon for final orders to be reopened, the Court determined that the unique circumstances of this case—specifically, the overturning of a foreign judgment that had been used as the basis for an English judgment—warranted the exercise of discretion to set aside the order.
This decision has significant implications for the enforcement of foreign judgments in England, especially for those involving ongoing appeals. Motorola’s case against Hytera, filed in the US, stemmed from allegations of 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 1976. However, Hytera appealed the US judgment.
By July 2023, Motorola amended its claim in England to seek enforcement of the $136.3 million portion of the US judgment. Hytera admitted to this partial enforcement due to the established principle in English law that an appeal does not prevent the foreign judgment from being considered "final and conclusive" for enforcement purposes. Later that year, Hytera consented to a summary judgment granting Motorola the $136.3 million under English law, though they applied for a stay of execution, citing the potential for the US judgment to be overturned on appeal. The Court granted the stay, provided that Hytera deposited $25 million in security.
On July 2, 2024, the US court vacated the portion of the judgment that had formed the basis of the English order, and Hytera subsequently moved to have the English judgment set aside or stayed permanently. The key issue at hand was whether an English judgment based on a foreign judgment, which has been successfully appealed in the foreign court, should remain in effect.
The Court, surprised by the lack of direct authority on this issue, determined that it had the authority to set aside the English judgment under CPR 3.1(7) due to the exceptional circumstances of the case. The Court noted that while final orders are rarely overturned, in this case, the reversal of the underlying foreign judgment was a significant enough change to justify setting aside the enforcement order.
Hytera’s application raised the broader question of whether the successful appeal of a foreign judgment should automatically affect the enforcement of that judgment in England. The Court pointed out that a successful appeal could indeed alter the circumstances of the enforcement, especially when the English judgment was premised on the foreign ruling. However, the Court also emphasized that it could choose not to set aside the English judgment, depending on the fairness of the situation.
The Court found that Hytera had no reasonable alternative actions to protect itself when Motorola obtained the English summary judgment, contrasting this with the Vodafone v. IPCom case, where Vodafone had failed to take steps to mitigate the risk of an invalidated patent. The Court concluded that in this case, setting aside the English judgment would not undermine the finality of the judicial process, but rather respect the appeal process in the foreign jurisdiction.
This judgment makes it clear that while an English court can set aside a judgment enforcing a foreign decision if the foreign judgment is successfully appealed, this is only likely to happen in rare and exceptional cases. Furthermore, if the foreign judgment's appeal is limited to quantum (i.e., the damages awarded), the English court cannot simply alter the judgment to account for potential future damages until the appeal is finalized.
Legal teams must be vigilant about the potential consequences of enforcing foreign judgments in England, particularly when there are ongoing appeals. Strategic legal advice is crucial to navigate these complex and dynamic legal landscapes.
Sue Millar
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Tayla Dyer
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