Jurisdiction(s):
United Kingdom

English Court of Appeal: arbitral res judicata bars recognition on public policy grounds; s66 not Art 34(3) judgment; no injunctions or s50 damages against States; narrow equitable compensation

Published on: 03 January 2025

Published by a LexisNexis Arbitration expert

Legal News

Article summary

The Kingdom of Spain v The London Steam-Ship Owners’ Mutual Insurance Association Ltd and other cases [2024] EWCA Civ 1536

What are the practical implications of this case?

This decision from the English Court of Appeal confirms that a final arbitral award gives rise to res judicata, constituting a public policy basis to refuse recognition or registration of a judgment, and again underscores the English courts’ backing for arbitration and the New York Convention.

That said, the ruling highlights the real-world difficulties for parties confronted with overlapping State-initiated proceedings, and the perils of declining to engage in litigation abroad.

It also clarifies that arbitrators have no power to issue injunctions restraining States from commencing proceedings, and that neither arbitrators nor the courts can grant damages against States as a substitute for an injunction under SCA 1981, s 50.

The decision serves as a reminder of the fundamental principles guiding the court’s equitable jurisdiction—its flexibility, and its limits.

What was the background?

The appeals arose from a proliferation of arbitral and court proceedings stemming from a 2002 oil spill that caused harm along the shorelines of Spain and France...

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