The Factortame litigation arose from 'quota hopping' — a practice whereby Spanish fishing companies purchased British-registered vessels in the 1980s to access the UK's fishing quotas under the Common Fisheries Policy. By 1988, approximately 90–100 Spanish-owned vessels were registered in the UK, accounting for a significant portion of the British fleet's quota. The UK Parliament responded with the Merchant Shipping Act 1988, which imposed new registration conditions requiring beneficial owners of British fishing vessels to be British citizens or companies with 75% British ownership, and that vessels be managed and operated from the UK. Spanish vessel owners challenged the Act as violating EU law (freedom of establishment under Article 52 EEC Treaty, now Article 49 TFEU). The case generated multiple ECJ proceedings: C-213/89 (interim relief — ruled 19 June 1990 that national courts must set aside national legislation conflicting with EU law, even by way of interim measures), C-221/89 (substantive ruling — 25 July 1991, held that nationality requirements for vessel registration violated freedom of establishment), and C-48/93 Brasserie du Pêcheur/Factortame III (5 March 1996, established state liability in damages for breaches of EU law). The House of Lords ultimately awarded approximately £55 million in damages to the affected Spanish fishing companies in 2000.