The London Steam-Ship Owners' Mutual Insurance Association Ltd v Spain (M/T "PRESTIGE") [2020] EWHC 1582 (Comm) (18 June 2020)

The London Steam-Ship Owners' Mutual Insurance Association Ltd v Spain (M/T "PRESTIGE") [2020] EWHC 1582 (Comm) (18 June 2020)

Spain is not immune from the present proceedings under the State Immunity Act 1978 because, by pursuing claims against the Club in disregard of the arbitration clause, Spain is bound by the arbitration agreement for those claims by operation of the conditional benefit principle. The court has jurisdiction to appoint an arbitrator under section 18 of the Arbitration Act 1996, except in relation to the Club’s proposed claim for breach of contract, which is not arbitrable against Spain. The permission to serve the arbitration claim form out of the jurisdiction stands.

Citation
[2020] EWHC 1582 (Comm)
Parties
Claimant/respondent: The London Steam-Ship Owners’ Mutual Insurance Association Limited; Defendant/applicant: The Kingdom of Spain
Jurisdiction
England and Wales
Judgment Date
18 June 2020
Procedural Posture
Arbitration Claim (application to Appoint Arbitrator) and Challenge to Service/jurisdiction / High Court (commercial Court) Judgment on CPR Part 11 Application to Set Aside Service and on Application Under Arbitration Act 1996 Section 18
Outcome
Application dismissed in substantial part; Spain’s immunity claim rejected; court will appoint arbitrator except as to breach of contract claim.
Legal Topics
State Immunity Act 1978, Arbitration Act 1996 Section 18, Direct Action Against Insurers, Conditional Benefit Principle, Anti Suit Injunctions, Jurisdictional Challenges, Enforcement of Arbitral Awards
Arbitration State Immunity Insurance Law International Law State Immunity Act 1978 Arbitration Act 1996 Section 18 Direct Action Against Insurers Conditional Benefit Principle +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 16 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

The London Steam-Ship Owners’ Mutual Insurance Association Limited

Claimant/respondent

The Kingdom of Spain

Defendant/applicant

Procedural Posture

Arbitration Claim (application to Appoint Arbitrator) and Challenge to Service/jurisdiction / High Court (commercial Court) Judgment on CPR Part 11 Application to Set Aside Service and on Application Under Arbitration Act 1996 Section 18

Legal Issues

  1. 1 Whether Spain is immune from the jurisdiction of the English courts under the State Immunity Act 1978 in respect of an application to appoint an arbitrator under section 18 of the Arbitration Act 1996
  2. 2 Whether the Club’s claims fall within the scope of an arbitration agreement binding Spain by operation of the conditional benefit principle
  3. 3 Whether the court should exercise its power to appoint an arbitrator under section 18 AA 1996

Ratio Decidendi

Spain is not immune from the present proceedings under the State Immunity Act 1978 because, by pursuing claims against the Club in disregard of the arbitration clause, Spain is bound by the arbitration agreement for those claims by operation of the conditional benefit principle. The court has jurisdiction to appoint an arbitrator under section 18 of the Arbitration Act 1996, except in relation to the Club’s proposed claim for breach of contract, which is not arbitrable against Spain. The permission to serve the arbitration claim form out of the jurisdiction stands.

Court Disposition

Application dismissed in substantial part; Spain’s immunity claim rejected; court will appoint arbitrator except as to breach of contract claim.

Orders

  • Permission to serve arbitration claim form out of jurisdiction stands.
  • Court will appoint an arbitrator under section 18 AA 1996, except in relation to the breach of contract claim.