National Navigation Co v Endesa Generacion SA

National Navigation Co v Endesa Generacion SA

A judgment of a fellow EU Member State court, given in proceedings falling within the scope of Council Regulation (EC) 44/2001, including a decision on the incorporation of an arbitration clause as a preliminary issue, must be recognised by English courts under Article 33, even in arbitration-related proceedings...

Source-derived case information.

Parties
Respondent: National Navigation Co; Appellant: Endesa Generacion SA
Jurisdiction
England and Wales
Judgment Date
17 December 2009
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal allowed; Arbitration proceedings dismissed; Commercial Court action struck out; Permission to appeal refused.
Legal Topics
Recognition and Enforcement of Foreign Judgments, Issue Estoppel, Arbitration Clause Incorporation, Jurisdiction Under Council Regulation (ec) 44/2001, Public Policy Exception
Civil Procedure International Commercial Law Arbitration Recognition and Enforcement of Foreign Judgments Issue Estoppel Arbitration Clause Incorporation Jurisdiction Under Council Regulation (ec) 44/2001 Public Policy Exception

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Summary, issues, holding and outcome

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Parties

National Navigation Co

Respondent

Endesa Generacion SA

Appellant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a Spanish court judgment refusing to stay proceedings for arbitration is binding on English courts under Council Regulation (EC) 44/2001
  2. 2 Whether the Spanish judgment creates an issue estoppel regarding the incorporation of an arbitration clause
  3. 3 Whether English courts must recognise and enforce the Spanish judgment in arbitration-related proceedings

Ratio Decidendi

A judgment of a fellow EU Member State court, given in proceedings falling within the scope of Council Regulation (EC) 44/2001, including a decision on the incorporation of an arbitration clause as a preliminary issue, must be recognised by English courts under Article 33, even in arbitration-related proceedings excluded from the Regulation. The Spanish court's judgment that no arbitration clause was incorporated is binding and gives rise to issue estoppel, precluding the English court from deciding otherwise. Public policy and the New York Convention do not justify refusal of recognition.

Court Disposition

Appeal allowed; Arbitration proceedings dismissed; Commercial Court action struck out; Permission to appeal refused.

Orders

  • Arbitration proceedings (Folio 667) dismissed.
  • Commercial Court action (Folio 64) struck out.