Factortame was a shipping company whose shareholders were mainly Spanish, which made it subject to certain restrictions under the British parliament’s Merchant Shipping Act 1988. Factortame argued that this was contrary to EC law and therefore that the HL ought to order an injunction removing all obstructions to them caused by the Act. The HL refused their appeal on the grounds that they had no power to strike down legislation or make orders contrary to the will of parliament, but that the question of the effect of EC law on English law should be referred to the ECJ. Lord Bridge said that on the question of the effect of EC law on UK law and the appropriate remedy, the question was not within the HL’s competence and had to be referred to the ECJ.
