In an appeal in a case considering the interrelation between arbitration and state immunity, on an application by France and Spain (the States), the English Court of Appeal (the Court) refused to reverse the decision of the High Court which granted permission to enforce two arbitral awards (the Awards) against the States under s66 of the English Arbitration Act 1996 (the Act).
The States argued that they benefitted from immunity from the jurisdiction of the English courts under the State Immunity Act 1978 (the SIA). The Court found that in bringing an application challenging the jurisdiction of the tribunal under s67 and s72 of the Act, the States had taken steps in the proceedings other than for the sole purpose of preserving immunity. The States had been deemed to have submitted to the jurisdiction.
On a practical level, the decision demonstrates the need for states to consider carefully their strategy in responding to proceedings brought against them, if they do not wish to risk losing the general immunity granted by the SIA.
The case has been considered on our Public International Law blog. Please click here for the case summary and comment.