Sovereign State Immunity From Anti-suit Injunctions

• Published date: 30 November 2022
• Law Firm: Norton Rose Fulbright
• Author: Mr Lorcan Treacy

UK P&I Club N.V. & Anor v Republica Bolivariana De Venezuela[2022] EWHC 1655 (Comm) provides guidance on the factors the English courts will consider when deciding whether a state should benefit from state immunity and whether injunctive relief can be granted against a state.

Background

This case concerned the total loss of a Venezuelan navy patrol vessel which sank in 2020 following a collision with a tourist cruise liner, RCGS Resolute. In 2020, Venezuela brought civil claims in the courts of Dutch Curacao and Venezuela against the owners and insurers of the Resolute for the loss. In February 2021, the insurers sought an anti-suit injunction against Venezuela in the English High Court, arguing that the Venezuelan claims in the foreign courts were in breach of the London arbitration clause contained in the insurance contract.

Key arguments

In the High Court, the insurers argued that Venezuela was in breach of the express terms of the insurance contract by pursuing claims outside of London arbitration. The insurers claimed that Venezuela did not...