The State of Libya (Appellant) v General Dynamics United Kingdom Limited (Respondent)

Case summary

Case ID

UKSC/2025/0051

Parties

Appellant(s)

The State of Libya

Respondent(s)

General Dynamics United Kingdom Limited

Issue

Did the Court of Appeal error by: 1) Ignoring the context when considering the proper approach to the statutory interpretation of s.13(3) of the State Immunity Act 1978, and in particular the fundamentally important role played by immunity from execution. 2) Interpreting ‘enforcement’ and ‘execution’ of an arbitral award as being the same stage. 3) Adopting the reasoning (such as it was) in two foreign judgments, taking a blanket approach to an alleged waiver of immunity under the ICC Rules of Arbitration.

Facts

This case is about whether a submission to the jurisdiction of the United Kingdom with regards to arbitration under section 9 of the State Immunity Act also provides a consent to the execution against its property under section 13(3). On 5 May 2008, General Dynamics UK Limited agreed to supply a Tactical Communications and Information System to the Appellant for the price of £84m. The contract was governed by the law of Switzerland. Clause 32 provided for arbitration of any dispute under the Rules of Arbitration of the International Chamber of Commerce (the “ICC”), further providing that the decision of the arbitration panel “shall be final, binding and wholly enforceable”. There was a dispute between the parties, which led to an ICC tribunal issuing an ICC award for £16,114,120.62, dated 5 January 2016 GDUK issued an arbitration claim form in the High Court, which was subsequently served on the Appellant. The Appellant disputed that Clause 32 of the contract meant that they consented to the execution against its property of any ICC arbitration award made against it. On 22 March 2024 His Honour Judge Pelling KC determined that the words of Clause 32 did amount to such consent, so that Libya could not rely on state immunity to resist execution against its property in respect of the ICC Award. His Honour Judge Pelling KC therefore made a final charging order in favour of GDUK over a property owned by Libya at 7 Winnington Close, London N2 0UA . On 19 February 2025 the Court of Appeal rejected Libya’s appeal against His Honour Judge Pelling KC’s decision. The Appellant now appeals to the Supreme Court.

Date of issue

25 March 2025

Case origin

PTA

Appeal

Justices

Lord Lloyd-Jones

Lord Sales

Lord Stephens

Permission to Appeal

Permission to Appeal decision date

5 June 2025

Permission to Appeal decision

Refused

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