Baccus v SRL Servicio Nacional del Trigo [1957]1 QB 438 CA

The plaintiff Italian company and the defendants made a contract for the sale of rye, which contained an arbitration clause that gave jurisdiction over disputes arising under the contract to the English High Court.

The defendants claimed state immunity alleging that although formed as a separate legal person under Spanish Law, they were nonetheless a Department of State of the Spanish Government. Based on an affidavit from the Spanish Ambassador and from a Spanish legal expert on that sense, the immunity was recognised to them as a Department of State. [The same conclusion would be reached as a department of government with separate legal personality, 14, State Immunity Act 1978] [The real problem was that the contract was a commercial transaction so perhaps immunity would have not been allowed 3, SIA 1978] [The act did not existed]