Vimar Seguros y Reaseguros (the plaintiff), an insurance company acting under an assignment of rights, claimed for damage to a cargo of 282 steel coils carried from Korea to Bilbao, Spain, on board the MV Reunited Confidence. The claim was against Assuranceforeningen Gard (Gard), Nippon Yusen Kaisha and Ssangyong Corp y Cia Ltda, the P&I club, the shipowner and the charterer of the vessel respectively. The plaintiff arrested the ship in Baracaldo, but commenced proceedings in Bilbao, both cities located in Spain.

Gard appeared in the process and alleged a lack of jurisdiction of the Court and a lack of legal standing of the plaintiff to bring suit. The other two defendants did not appear in the process. The first instance Court admitted the claim partially, ordering Gard to pay compensation, and exonerated the other defendants from liability. Gard appealed, and the Court of Appeal affirmed the decision. This defendant recurred the decision in cassation before the Tribunal Supremo/Supreme Court (SC). Gard alleged an infraction of art 6 of the International Convention Relating to the Arrest of Sea-Going Ships 1952 (the Arrest Convention 1952) because the Court of Baracaldo had territorial jurisdiction over the claim as a consequence of the arrest of the vessel executed there. It also argued that the Court should have decided on the defence of lack of territorial jurisdiction.

Held: The SC affirmed the decision. The SC stated that the lower Court rejected the answer to the complaint of the defendant (containing the defence of lack of territorial jurisdiction) because it was not filed within the granted period of three months. The SC held that the relation of the arrest executed in the court of Baracaldo and the absence of ratification in that Court was irrelevant to this claim. Furthermore, according to the amendment to the civil procedure law and the corresponding case law, the alleged defence must have been filed as a petition to the Court to stay the case or to refrain from deciding it. Therefore, the arguments were dismissed and the decision affirmed.