The London Steam-Ship Owners' Mutual Insurance Association Ltd v Spain (M/T "PRESTIGE")

The London Steam-Ship Owners' Mutual Insurance Association Ltd v Spain (M/T "PRESTIGE")

Spain is not immune from the Club's application to appoint an arbitrator under section 18 of the Arbitration Act 1996 because, by pursuing claims under the insurance contract, Spain is bound by the arbitration clause under the conditional benefit principle and has agreed in writing to arbitrate such disputes within the meaning of SIA section 9; alternatively, Spain's pursuit of the claims is a commercial activity under SIA section 3(1)(a), and the court should appoint an arbitrator for all claims except the Club's contractual claim arising from Spain's participation in the section 66 proceedings, for which no agreement to arbitrate was established.

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) / Ruling on CPR Part 11 Application to Set Aside Service and Challenge Jurisdiction
Outcome
Spain's application to set aside service and challenge jurisdiction is dismissed; the court will appoint an arbitrator under section 18 of the Arbitration Act 1996 except for the Club's contractual claim arising from the section 66 proceedings.
Legal Topics
State Immunity Act 1978, Arbitration Act 1996 Section 18, Conditional Benefit Principle, Anti Suit Injunctions, Equitable Compensation, Merger of Causes of Action, Damages in Lieu of Injunction, Jurisdictional Challenges, Enforcement of Arbitration Awards
Arbitration State Immunity Commercial Law International Law State Immunity Act 1978 Arbitration Act 1996 Section 18 Conditional Benefit Principle Anti Suit Injunctions +5 more

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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) / Ruling on CPR Part 11 Application to Set Aside Service and Challenge Jurisdiction

Legal Issues

  1. 1 Whether Spain is immune from jurisdiction under the State Immunity Act 1978 in respect of the Club's application to appoint an arbitrator under section 18 of the Arbitration Act 1996
  2. 2 Whether Spain has agreed in writing to submit the relevant disputes to arbitration within the meaning of SIA section 9
  3. 3 Whether the Club's claims are arbitrable or merged into previous awards/judgments

Ratio Decidendi

Spain is not immune from the Club's application to appoint an arbitrator under section 18 of the Arbitration Act 1996 because, by pursuing claims under the insurance contract, Spain is bound by the arbitration clause under the conditional benefit principle and has agreed in writing to arbitrate such disputes within the meaning of SIA section 9; alternatively, Spain's pursuit of the claims is a commercial activity under SIA section 3(1)(a), and the court should appoint an arbitrator for all claims except the Club's contractual claim arising from Spain's participation in the section 66 proceedings, for which no agreement to arbitrate was established.

Court Disposition

Spain's application to set aside service and challenge jurisdiction is dismissed; the court will appoint an arbitrator under section 18 of the Arbitration Act 1996 except for the Club's contractual claim arising from the section 66 proceedings.

Orders

  • Permission granted to serve arbitration claim form out of jurisdiction stands.
  • Court will appoint an arbitrator under section 18 of the Arbitration Act 1996 (except for the Club's contractual claim).