London Steam-Ship Owners' Mutual Ins Assoc Ltd v Kingdom of Spain

London Steam-Ship Owners' Mutual Ins Assoc Ltd v Kingdom of Spain

The States are not entitled to immunity in respect of the Club’s claims due to the commercial nature of their activities and their agreement to arbitrate. The English court has jurisdiction to appoint an arbitrator for the Arbitration Claims. However, the Award Claims are bad in law as a declaratory award does not found a claim for damages or equitable compensation. The Judgment Claims are 'matters relating to insurance' and must be brought in the courts of the States’ domicile under the Brussels Recast Regulation; the English court has no jurisdiction over them.

Parties
Claimant: The London Steam-Ship Owners’ Mutual Insurance Association Limited; Defendant: The Kingdom of Spain; Defendant: The French State
Jurisdiction
England and Wales
Judgment Date
04 November 2021
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeals From High Court Decisions Regarding State Immunity and Jurisdiction in Insurance/arbitration Disputes
Outcome
Appeals allowed in part and dismissed in part.
Legal Topics
State Immunity, Jurisdiction, Enforcement of Foreign Judgments, Direct Actions Against Insurers, Arbitration Agreements, Declaratory Awards, Brussels Recast Regulation
Arbitration Insurance Law International Law Civil Procedure State Immunity Jurisdiction Enforcement of Foreign Judgments Direct Actions Against Insurers +3 more

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Parties

The London Steam-Ship Owners’ Mutual Insurance Association Limited

Claimant

The Kingdom of Spain

Defendant

The French State

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeals From High Court Decisions Regarding State Immunity and Jurisdiction in Insurance/arbitration Disputes

Legal Issues

  1. 1 Whether the Kingdom of Spain and the French State are entitled to state immunity in respect of claims brought by the Club in England
  2. 2 Whether the English court has jurisdiction over the Award Claims and Judgment Claims under domestic law or the Brussels Recast Regulation
  3. 3 Whether a declaratory arbitral award gives rise to an obligation breach of which can found a claim for damages or equitable compensation

Ratio Decidendi

The States are not entitled to immunity in respect of the Club’s claims due to the commercial nature of their activities and their agreement to arbitrate. The English court has jurisdiction to appoint an arbitrator for the Arbitration Claims. However, the Award Claims are bad in law as a declaratory award does not found a claim for damages or equitable compensation. The Judgment Claims are 'matters relating to insurance' and must be brought in the courts of the States’ domicile under the Brussels Recast Regulation; the English court has no jurisdiction over them.

Court Disposition

Appeals allowed in part and dismissed in part.

Orders

  • Spain’s appeal from the decision of Mr Justice Henshaw on the section 18 application is dismissed.
  • The States’ appeal in respect of the Award Claims from the decision of Mr Justice Butcher is allowed; the English court has no jurisdiction over the Award Claims.