THE KINGDOM OF SPAIN V THE LONDON STEAM-SHIP OWNERS' MUTUAL INSURANCE ASSOCIATION LTD

[2026] UKSC 36, Supreme Court, Lord Lloyd Jones, Lord Leggatt, Lord Burrows, Lord Doherty and Lord Snowden, 28 October 2026

Arbitration – Error of law – Third party rights – Conditional benefit principle – Tribunals awarded equitable damages for breach of obligation to arbitrate disputes – Common law basis of action – Measure of damages – Arbitration Act 1996, section 69

The vessel Prestige, insured by the Club against pollution liability subject to English arbitration and a pay to be paid clause, ran aground off Spain in 2002 and caused serious pollution.