Unit 2 & 4: Constitution & EU Law (Factortame test case)

Although this is an old case. It sets a precedence for the UK and constitutional issues. It is the example that is always used in mark schemes on both Unit 2 Constitution questions and Unit 4 questions on the sovereignty issue regarding EU.

Thursday, October 28, 1999 Published at 03:18 GMT 04:18 UK 


UK Politics

Spanish fishermen net £100m compensation 

Spanish fishermen claimed for three years of losses 

Britain will have to pay compensation estimated at £100m to Spanish fishing companies unlawfully banned from operating British-registered vessels 10 years ago.

BBC News' David Shukman: "This could fuel passions over Europe"

In 1988 the Conservative government passed laws intended to stop Spanish fisherman increasing their take of fish by the ploy of using British fishing quotas.
The legislation was later found to have broken European law.
Euro-scepticism, already high over the beef impasse with France, was further inflamed when five law lords unanimously ruled on Thursday that the breach was sufficiently serious to entitle the fisherman to claim compensation.

Spanish fishermen bought up British boats

They said that although the government's intention was to protect British fishing communities, the effect was to discriminate against Spanish nationals, thereby flouting one of the most basic principles of European law.
The law lords said the government had deliberately decided to run the risk of introducing the legislation, knowing that it could be unlawful. Justice required that the wrong should be made good.

The amount which now could be claimed by the Spanish in individual court cases has been estimated at £80m - but interest and legal costs are expected to push the total bill to be picked up by the British taxpayer at over £100m.
Plymouth Fisheries manager Peter Bromley branded the decision a "sick joke.
"The feelings of the industry will be very strong and the government will continue to do absolutely nothing about it.
"As far as I am concerned the British industry is a valuable asset to this country, and it is not exploited to the extent it should be to the benefit of the British people or the British fishermen.
"This is just a sick joke played on an industry which is having to fight very hard for its survival.
"We seem to be kow-towing to Europe over everything at the moment."
The case was brought by Spanish company Factortame Ltd and almost 100 other Spanish fishing companies. They are claiming for losses while their ships were laid up over three years from 1988-1991.
Following the Icelandic cod war in the 1970s, Spanish fishing companies started buying UK-registered ships.
In 1988, the UK Government passed the Merchant Shipping Act, preventing the Spanish-owned ships from fishing against UK quotas, or "quota-hopping".
But three years later the European Court of Justice overturned the UK's legislation.
It also ruled member states must pay compensation where a breach of European law was deemed sufficiently serious.
After the ruling John Couceiro, director of Factortame, said: "I am delighted.

"Hopefully after our long battle we can now sort out the damages and put this all behind us."