The London Steam-Ship Owners’ Mutual Insurance Association Limited v The Kingdom of Spain (M/T ‘Prestige’)

The London Steam-Ship Owners’ Mutual Insurance Association Limited v The Kingdom of Spain (M/T ‘Prestige’)

The Spanish Judgment is irreconcilable with the English s. 66 Judgments under Article 34(3) of the Brussels Regulation, precluding its recognition and enforcement in England. Even if Article 34(3) were inapplicable, recognition would be contrary to English public policy under Article 34(1) due to res judicata arising from the Schaff Award. The CJEU Judgment is not binding on the English court as to these issues due to issue estoppel and because it addressed questions not referred. The arbitrator had jurisdiction and power to award equitable compensation for breach of the equitable obligation to arbitrate, but not to grant an injunction or damages in lieu against Spain absent its consent...

Parties
Appellant/defendant: The London Steam-Ship Owners’ Mutual Insurance Association Limited; Respondent/claimant: The Kingdom of Spain
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Court Appeal and Arbitration Act Applications / Judgment on Appeal and Arbitration Challenges
Outcome
Club’s appeal allowed; Spanish Judgment not recognised or enforced; Spain’s s. 67 application dismissed; Spain’s s. 69 appeal dismissed except as to injunction power, which is deferred.
Legal Topics
Recognition and Enforcement of Judgments, Arbitration Awards, Res Judicata, Public Policy Exception, State Immunity, Anti Suit Injunctions, EU Law—brussels Regulation, Equitable Compensation
International Arbitration Private International Law Insurance Law State Immunity Recognition and Enforcement of Judgments Arbitration Awards Res Judicata Public Policy Exception +3 more

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Parties

The London Steam-Ship Owners’ Mutual Insurance Association Limited

Appellant/defendant

The Kingdom of Spain

Respondent/claimant

Procedural Posture

Commercial Court Appeal and Arbitration Act Applications / Judgment on Appeal and Arbitration Challenges

Legal Issues

  1. 1 Whether the Spanish Judgment is irreconcilable with the English s. 66 Judgments under Article 34(3) of the Brussels Regulation
  2. 2 Whether recognition of the Spanish Judgment should be refused on public policy grounds (res judicata) under Article 34(1)
  3. 3 Effect and binding nature of the CJEU Judgment on the English court and arbitral tribunal

Ratio Decidendi

The Spanish Judgment is irreconcilable with the English s. 66 Judgments under Article 34(3) of the Brussels Regulation, precluding its recognition and enforcement in England. Even if Article 34(3) were inapplicable, recognition would be contrary to English public policy under Article 34(1) due to res judicata arising from the Schaff Award. The CJEU Judgment is not binding on the English court as to these issues due to issue estoppel and because it addressed questions not referred. The arbitrator had jurisdiction and power to award equitable compensation for breach of the equitable obligation to arbitrate, but not to grant an injunction or damages in lieu against Spain absent its consent...

Court Disposition

Club’s appeal allowed; Spanish Judgment not recognised or enforced; Spain’s s. 67 application dismissed; Spain’s s. 69 appeal dismissed except as to injunction power, which is deferred.

Orders

  • Spanish Judgment not to be recognised or enforced in England and Wales under Article 34(3) and/or Article 34(1) of the Brussels Regulation.
  • Spain’s s. 67 AA 1996 application dismissed.