Castaneda v. Clydebank Engineering and Shipbuilding Co. Ltd [1901] ScotLR 39_231 (10 December 1901)

Castaneda v. Clydebank Engineering and Shipbuilding Co. Ltd [1901] ScotLR 39_231 (10 December 1901)

The right to enforce a contract made on behalf of a foreign monarchical state in Scottish courts vests solely in the sovereign of that state, not in government ministers or agents, and a defect in title to sue cannot be remedied by subsequent ratification. The pursuers, not being the King of Spain nor suing in his name, had no title to sue.

Citation
[1901] ScotLR 39_231
Parties
Pursuer: His Excellency Rear-Admiral Don Jose Ramos Yzquierdo y Castaneda, Spanish Minister of Marine in Madrid; Don Manuel Diaz e Iglesias, Chief of the Spanish Royal Naval Commission, London; Don Diego de Tapia, Commissary of the Spanish Royal Naval Commission; Spanish Royal Naval Commission; Defender: Clydebank Engineering and Shipbuilding Company Limited (formerly James & George Thomson, Limited); Charles Ker, Chartered Accountant; William Barclay Peat, Liquidators
Jurisdiction
Scotland
Judgment Date
10 December 1901
Procedural Posture
Civil / Inner House Appeal From Lord Ordinary's Interlocutor Allowing Proof Before Answer
Outcome
Action dismissed for want of title to sue
Legal Topics
Title to Sue, Foreign Sovereign Immunity, Agency, Ratification, Breach of Contract, Liquidated Damages
International Law Contract Law Civil Procedure Title to Sue Foreign Sovereign Immunity Agency Ratification Breach of Contract +1 more

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Parties

His Excellency Rear-Admiral Don Jose Ramos Yzquierdo y Castaneda, Spanish Minister of Marine in Madrid; Don Manuel Diaz e Iglesias, Chief of the Spanish Royal Naval Commission, London; Don Diego de Tapia, Commissary of the Spanish Royal Naval Commission; Spanish Royal Naval Commission

Pursuer

Clydebank Engineering and Shipbuilding Company Limited (formerly James & George Thomson, Limited); Charles Ker, Chartered Accountant; William Barclay Peat, Liquidators

Defender

Procedural Posture

Civil / Inner House Appeal From Lord Ordinary's Interlocutor Allowing Proof Before Answer

Legal Issues

  1. 1 Whether the pursuers had title to sue for breach of contract entered into on behalf of the Spanish Government in Scottish courts
  2. 2 Whether ratification by the Spanish sovereign after the action was raised could cure a defect in title to sue

Ratio Decidendi

The right to enforce a contract made on behalf of a foreign monarchical state in Scottish courts vests solely in the sovereign of that state, not in government ministers or agents, and a defect in title to sue cannot be remedied by subsequent ratification. The pursuers, not being the King of Spain nor suing in his name, had no title to sue.

Court Disposition

Action dismissed for want of title to sue

Orders

  • Interlocutor of Lord Ordinary recalled
  • First plea-in-law for defenders sustained