factortame

The Factortame case (1990) is a landmark legal battle that addressed the balance of power between UK national law and European Community (EC) law. The case began when a group of Spanish fishermen, led by the company Factortame, challenged the validity of the UK Merchant Shipping Act 1988, which imposed restrictions on foreign-owned fishing vessels operating in British waters.

• Background: The Merchant Shipping Act 1988 was enacted to protect British fishing interests, requiring that all fishing boats registered in the UK must be majority-owned by British nationals. Factortame’s owners argued that this violated their rights under EC law, specifically the principle of free movement of goods and services.

• Legal Issues: The case raised significant questions about the supremacy of EC law over national law, as well as the relationship between domestic courts and European courts. The initial questions considered were whether the UK courts could set aside national legislation that was incompatible with EC law.

• Court Decisions: The House of Lords initially ruled that UK courts had to follow national law but later allowed the European Court of Justice (ECJ) to intervene. In a pivotal ruling, the ECJ held that EU law takes precedence over conflicting national law, affirming the principle of supremacy of EU law.

• Significance: The Factortame case is significant for several reasons:

  • It established the supremacy of EU law over national legislation, reinforcing the authority of the European Court of Justice in member states.

  • It highlighted the limitations of parliamentary sovereignty in the UK, demonstrating that national laws could be challenged and overridden by international obligations.

  • The ruling set a precedent for future cases involving conflicts between national law and EU law, influencing the judicial landscape in the UK and shaping legal interpretations of sovereignty and compliance with European law during the UK's membership in the EU.