UK P&I Club NV & Anor v Republica Bolivariana De Venezuela [2023] EWCA Civ 1497 – 20 December 2023 (Sir Geoffrey Vos, Popplewell LJ, Phillips LJ)

The State of Venezuela started proceedings in Curacao and Venezuela against the owners and insurers of a cruise liner which collided with a Venezuelan navy vessel in breach of the London arbitration clauses in the insurance contract. The insurers were granted an interim anti-suit injunction by the High Court but Venezuela objected enforcement immunity. The CA upheld the first instance judgment that refused to grant the insurers a permanent anti-suit injunction because (i) relief cannot be given against a State by way of injunction pursuant to sec. 13(2)(a) of the SIA 1978 and (ii) such rule pursues legitimate domestic objectives by proportionate means, and does not impair the essence of Article 6(1) of the ECHR protecting the universal right to a fair and public hearing. The limitation to the ECHR right was justified by the UK’s domestic policy consistent with international sensitivity and comity.