Late payment of insurance claims against P&I clubs under Spanish law

The ambiguity of the Spanish Shipping Act, which entered into force on 25th September 2014, with regards to the direct action against P&I’s will surely open the door to many third party claims before the Spanish courts. It is unclear whether such actions will prevail or not. If the Spanish courts accept the existence of a direct action, P&I’s in such proceedings may allege the application of English law to their marine insurance contracts as maritime transport is considered a large risk where the choice of law prevails. This will require proof of the contents of such law. Lack or insufficient proof of English law could result inevitably in the application of Spanish law. Read more