High Court illuminates challenges in enforcing international arbitration awards against sovereign states and EU law intersection.

Citation: [2024] EWHC 82 (Comm)
Judgment on


In the case of Operafund Eco-Invest Sicav PLC & Anor v Kingdom of Spain, various legal principles and complexities regarding international investment arbitration, state immunity, and full and frank disclosure have been illuminated by the High Court. This case has shed light on the procedural and substantive challenges associated with the enforcement of international arbitration awards against sovereign states and how European Union (EU) law intersects with this arena. The judgment presents key issues that are central to the understanding of arbitral enforcement in the UK’s legal framework, particularly under the Arbitration (International Investment Disputes) Act 1966.

Key Facts

The case involves two claimants, Operafund Eco-Invest SICAV PLC and Schwab Holding AG, who obtained an arbitration award against Spain under the ICSID Convention. The claimants sought the enforcement of the award in the UK, which led to the Registration Order by Justice Cockerill. Spain challenged this Order, asserting state immunity and alleging that the claimants failed to disclose all relevant information during the ex parte application for the registration. The challenge to the jurisdiction of both the ICSID tribunal and the court invokes European Union law, referencing decisions by the Court of Justice of the European Union (CJEU) on the incompatibility of arbitration agreements with EU law.

The High Court applied several legal principles in this analysis, among which the following are key:

Sovereign Immunity and ICSID Convention

Spain asserts its state immunity under the State Immunity Act 1978, claiming that it was not subject to the jurisdiction of English courts for the registration and enforcement of the arbitration award. The court discusses the compatibility of the ICSID Convention with state immunity, noting the pending Court of Appeal decision in the related case Infrastructure Services Luxembourg SARL & Energia Termosolar BV v Kingdom of Spain as a future determinant of the issue.

Full and Frank Disclosure

The requirement for full and frank disclosure in ex parte proceedings is a significant focus in this case. The court examines if the claimants disclosed all relevant information during their registration application and points out similar requirements as outlined in previous cases, notably Siporex Trade SA v Comdel Commodities Ltd and Gold Reserve Inc v Bolivarian Republic of Venezuela.

Procedural Approach for Registration Orders

The process of registering awards under the Arbitration (International Investment Disputes) Act 1966 follows specific rules outlined in the CPR Part 62.21. The judgment considers whether it is appropriate, based on procedure, to make such orders ex parte and notes previous judgments, including that in Unión Fenosa v Egypt, that support the adopted approach.


The High Court determined the following outcomes:

  1. State Immunity and Jurisdiction: The decision on state immunity and jurisdiction rests upon the pending Court of Appeal decision in Infrastructure Services Luxembourg SARL & Energia Termosolar BV v Kingdom of Spain. The Registration Order is not to be set aside until that decision, which will clarify if the court has jurisdiction to register the award.

  2. Full and Frank Disclosure: The court found no breach of the full and frank disclosure duty by the claimants in their application for the Order. References to anticipated Spanish arguments, including the impact of Achmea and Komstroy, demonstrated an effort to comply with the duty.

  3. Procedural Approach: The court validated the procedural approach of registering the award without a hearing, in accordance with the Commercial Court Guide and the Fenosa case.

  4. Operafund Holding AG and Schwab: The Unitary Award Issue remains unresolved until the Court of Appeal decision. Schwab’s application to separate its claim for enforcement from Operafund’s is also pending the appeal outcome.


The High Court in Operafund Eco-Invest Sicav PLC & Anor v Kingdom of Spain has reinforced the procedural framework surrounding the recognition and enforcement of ICSID awards in the UK, highlighting the balancing act between respecting state immunity and the enforcement of arbitration awards under international treaties. The judgment emphasizes the need for full disclosure in ex parte proceedings, particularly when state immunity is potentially at play. Ultimately, the High Court’s judgment waits upon the Court of Appeal’s decision in a related case to fully determine the intricacies of sovereign immunity and the rightful approach to enforcing ICSID awards against Member States of the EU. This case is an example of the complexities arising from the intersection of international arbitration and EU law, showcasing the evolving nature of this legal landscape.

Related Summaries