UK Supreme Court backs insurer against Spain and France in Prestige oil spill arbitration case
The UK Supreme Court unanimously allowed the London Steam-Ship Owners' Mutual Insurance Association's appeal against Spain and France in the Prestige oil spill dispute. It held that a third party suing in breach of an arbitration clause under the conditional benefit principle breaches a contractual obligation, so the remedy is common law damages rather than equitable compensation. The arbitrators' monetary awards were upheld on that corrected basis.