Drelle vs HWA - Diverging Approaches In England And Jersey

Key Takeaways

• Following Drelle, a creditor does not have standing to bring a bankruptcy petition in England and Wales on a foreign judgment that has not been recognised or registered in that jurisdiction.
  
  
• In Jersey, HWA has shown that even without recognition of a foreign judgment, a creditor may have standing to bring a creditors' winding up application, subject to certain conditions.
  
  
• Despite Drelle, Jersey's insolvency regime remains structurally different from its English counterpart and is deliberately more creditor friendly.

The English Court of Appeal in Servis-Terminal LLC v Drelle (Drelle) held that a creditor cannot bring a bankruptcy petition in England and Wales on an unpaid foreign judgment that has not been recognised in that jurisdiction. In reaching its conclusion, the English Court upheld Dicey's principle - a foreign judgment has no direct operation domestically, until it is recognised or registered.