You cut the sentence off and removed the subject of the sentence, so I can only *guess* that the subject is a court judgment. If my surmise is correct, then your sentence means, in plain English:
The judgment may not be upheld (honored) by a BVI court, regardless of whether or not the court applies the Foreign Laws, if the judgment for a monetary award was in the form of a penalty rather than compensation for damages (that the victim suffered).
To understand this sentence, a little knowledge of Anglo-American common law is helpful. Generally common law courts do not like to enforce clauses in contracts that are punitive in nature, and prefer to enforce clauses that specify what sort of compensation the wrong-doing party must pay to the party that suffers the damage.