Court Of Appeal Upholds Spanish Court's Ruling On Arbitration

The Court of Appeal decrees that a member state's ruling on the validity of an arbitration agreement is valid and binding in the same manner as any judgment made under the Brussels Regulation. Endesa Generacion v National Navigation Co (2009).

The Court of Appeal has decided that, where a member state has ruled upon whether or not an arbitration agreement is valid, that member state's judgment should be valid and binding in the same way as any judgment made under Regulation 44/2001 (the "Brussels Regulation').

Accordingly, such a judgment is binding in proceedings which fall outside the remit of the Brussels Regulation, such as arbitration proceedings. By increasing the power and effect of member states' rulings on arbitration agreements in this way, the Court has reduced the risk of parallel proceedings and the likelihood of conflicting judgments between different courts and tribunals.