THE PUBLIC POLICY EXCEPTION IN INTERNATIONAL CIVIL CIRCULATION: BALANCING STATE SOVEREIGNTY AND INTERNATIONAL COOPERATION

In contemporary conditions, the cross-border movement of capital, people, property, and commercial relations, together with globalization, has necessitated interaction among different legal systems. Globalization has not only brought the recognition and enforcement of foreign court judgments to the forefront but has also raised the issue of maintaining a balance between state sovereignty and international legal cooperation. One of the grounds for refusing to recognize and enforce foreign court judgments is the “public policy” exception. However, the absence of a uniform and universal definition of this concept results in its differing interpretation and application across various jurisdictions. The article examines the theoretical and practical nature of public policy exception, its role in the recognition and enforcement of foreign court judgments, and its relationship with the principles of reciprocity and mutual trust. It compares the mutual trust model developed within the framework of the European Union with reciprocity- and sovereignty-based approaches existing in certain Asian jurisdictions. The provisions of the Civil Procedure Code of the Republic of Azerbaijan concerning the recognition and enforcement of foreign court judgments are analyzed, and the problems arising from public policy, reciprocity, and sovereignty considerations from the perspective of legal certainty are identified. The study concludes by proposing measures aimed at strengthening the exceptional nature of the public policy exception, clarifying the reciprocity requirement, and improving recognition mechanisms for international commercial disputes.