State immunity: anti-suit injunctions against states

The Court of Appeal had in UK P&I Club NV v Republica Bolivariana de Venezuela (The RCGS Resolute) [2023] EWCA Civ 1497; [2024] 1 Lloyd's Rep 417, upheld the first instance judgment of Sir Ross Cranston, [2022] EWHC 1655 (Comm); [2022] 2 Lloyd's Rep 520, ruling that English law does not permit the grant of an anti-suit injunction against a state which has - in contravention of an arbitration agreement - sought relief in the courts.

The case was one of third-party enforcement of a contract containing an arbitration clause, but the position would appear to be no different in a simple two-party case. The outcome is that the party seeking to invoke the arbitration clause has to rely upon any remedies granted by the arbitrators for breach of contract and also upon barriers to the enforceability in England of the foreign judgment. Much of the judgment of Sir Ross Cranston was not appealed, the only live question on appeal being that relating to injunctive relief.