GPRL, a company registered in Gibraltar, engaged Gibralcon, registered in Spain, to construct 500 new dwellings and retail units in Gibraltar. Pursuant to a JCT 98 Private with Quantities contract with bespoke amendments. The applicable law of the contract was Gibraltar and the parties submitted to the exclusive jurisdiction of the Courts of England and Wales.

Disputes arose resulting in Gibralcon receiving favourable decisions in the two adjudications. Shortly thereafter Gibralcon became the subject of insolvency proceedings in Spain. After the insolvency proceedings were commenced, GPRL brought two actions against Gibralcon in the High Court. In each action Gibralcon applied for a declaration that the English court had no jurisdiction to hear the claims.

The Judge stated that because Gibralcon was the subject of insolvency proceedings in Spain, an English court would not order that Gibralcon would have to pay GPRL anything. Instead, what it would do is make the declarations sought but then order a stay so that GPRL could prove that debt in Spanish insolvency proceedings. If, however, a net sum was found to be due to Gibralcon, it would order that that sum be paid to the administrators in Spain or order a stay of such payment in order to permit the administrators to seek the appropriate order from the English court. In short: the English court would not prejudice or interfere with the Spanish insolvency proceedings. There was no question that the Court would permit GRPL to make claims in the Spanish insolvency proceedings without making proper allowance for the sums awarded by the Adjudicator.