London Steam-Ship Owners' Mutual Insurance Association Ltd v Kingdom of Spain (Re M/T Prestige) [2023] EWHC 2473 (Comm) (06 October 2023)

London Steam-Ship Owners' Mutual Insurance Association Ltd v Kingdom of Spain (Re M/T Prestige) [2023] EWHC 2473 (Comm) (06 October 2023)

The court held that the Spanish judgment could not be refused recognition under Article 34(3) of the Regulation on the basis of irreconcilability with the English s.66 judgments, as the latter were not 'judgments' within the meaning of the Regulation due to the arbitration exception. The public policy and res judicata grounds under Article 34(1) were also rejected. The arbitral tribunal had jurisdiction to grant declaratory and compensatory relief against Spain for breach of the obligation to arbitrate, but injunctive relief was refused as a matter of discretion. The CJEU judgment did not deprive the tribunal of jurisdiction nor bind the English court to refuse enforcement of the awards.

Citation
[2023] EWHC 2473 (Comm)
Parties
Appellant / Defendant: The London Steam-Ship Owners' Mutual Insurance Association Limited; Respondent / Claimant: The Kingdom of Spain
Jurisdiction
England and Wales
Judgment Date
06 October 2023
Procedural Posture
Commercial Court Appeal and Arbitration Challenges / Judgment on Appeal Against Registration Order and on Ss. 67 69 Arbitration Act 1996 Applications
Outcome
Club's appeal against registration of the Spanish judgment dismissed; Spain's challenges to the arbitral awards under ss. 67, 68, and 69 AA 1996 dismissed.
Legal Topics
Recognition and Enforcement of Foreign Judgments, Arbitration Awards, State Immunity, Public Policy Exception, Res Judicata, Jurisdiction, Anti Suit Injunctions
Arbitration Insurance Law Conflict of Laws EU Law Public International Law Recognition and Enforcement of Foreign Judgments Arbitration Awards State Immunity +4 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 Challenges / Judgment on Appeal Against Registration Order and on Ss. 67 69 Arbitration Act 1996 Applications

Legal Issues

  1. 1 Whether the Spanish judgment is irreconcilable with prior English s.66 judgments under Article 34(3) of the Regulation
  2. 2 Whether recognition of the Spanish judgment would be contrary to English public policy due to res judicata or human rights grounds under Article 34(1) of the Regulation
  3. 3 Whether the arbitral tribunal had jurisdiction to grant declaratory, injunctive, and compensatory relief against Spain

Ratio Decidendi

The court held that the Spanish judgment could not be refused recognition under Article 34(3) of the Regulation on the basis of irreconcilability with the English s.66 judgments, as the latter were not 'judgments' within the meaning of the Regulation due to the arbitration exception. The public policy and res judicata grounds under Article 34(1) were also rejected. The arbitral tribunal had jurisdiction to grant declaratory and compensatory relief against Spain for breach of the obligation to arbitrate, but injunctive relief was refused as a matter of discretion. The CJEU judgment did not deprive the tribunal of jurisdiction nor bind the English court to refuse enforcement of the awards.

Court Disposition

Club's appeal against registration of the Spanish judgment dismissed; Spain's challenges to the arbitral awards under ss. 67, 68, and 69 AA 1996 dismissed.

Orders

  • Spanish judgment remains registered and enforceable in England, subject to the Club's liability cap.
  • Arbitral awards in favour of the Club (declaratory and compensatory relief) upheld; injunctive relief refused.