An Equitable Obligation To Arbitrate: Enforcement Against Non-Signatories

A. Introduction

On 12 December 2024, the English Court of Appeal handed down the latest judgment in a series of arbitral and court decisions relating to the sinking of the M/T Prestige in 2002, which caused widespread environmental damage along the Spanish and French coastlines.¹

The Court of Appeal's judgment clarifies English law concerning the enforcement of arbitration agreements against non-signatories. Notably, it has clarified the remedies available to an applicant seeking to enforce an arbitration agreement in such circumstances.

B. When Will an Equitable Obligation Arise?

In general, English law takes a restrictive approach to binding non-signatories to arbitration agreements. Subject to certain limited exceptions, only parties who agree, in writing, to submit a dispute to arbitration will be bound to do so.²