Guardian Assurance PLC (the plaintiff), an insurance company acting under an assignment of rights, claimed for damage to cargo. The claim was filed against Iberica de Servicios Maritimos SA (Ibesmar), the carrier, and Navale Delmas (Navale), the carrier’s agent at the port of destination.

Ibesmar argued that the Court lacked jurisdiction, based on a jurisdiction clause pointing to the courts of France, and the lack of legal standing of the plaintiff and of Ibesmar. In the alternative, it denied any responsibility for the damage, and in case it was obliged to pay compensation, argued that it was entitled to limit its liability according to art 11 of the Law on Carriage of Goods by Sea of 22 December 1949 (LCGS 1949), which introduced the Hague Rules into the Spanish legal system with some modifications and in terms of the Convention on Limitation of Liability for Maritime Claims 1976 (LLMC 1976). Navale answered, alleging similar defences and contended that the claim was elapsed (caducada). The first instance Court dismissed the case on jurisdictional reasons without analysing the merits of the claim. The plaintiff appealed the decision. The Court of Appeal partially reversed the decision, ordering Navale to pay compensation according to the limitation of liability rules, and released Ibesmar from liability. Navale recurred this decision in cassation before the Tribunal Supremo/Supreme Court (SC) alleging the lack of jurisdiction of the court based on the jurisdiction clause contained in the bill of lading.

Held: The SC reverted the decision declaring the jurisdiction clause valid without further analysis on the merits of the case.