UK Supreme Court rules in favor of Prestige insurer against Spain

The United Kingdom Supreme Court has recognized the right of the London Steam-Ship Owners' Mutual Insurance Association, the insurer for the Prestige oil tanker, to be indemnified. The tanker spilled over 63,000 tons of fuel off the coast of Galicia in November 2002.

The ruling follows a legal dispute regarding Spain's refusal to submit to arbitration as stipulated in the vessel's policy. The court determined that the insurer is entitled to economic compensation for breach of contract, noting that the use of the term ‘equitable compensation’ by previous parties and arbitrators does not deprive the insurer of its legal right to redress.

While the decision recognizes the right to compensation, it does not establish specific amounts. The case arose after a claim of 855 million euros was filed in Spanish courts rather than through the arbitration process required by the existing policy.