The EU's Common Fisheries Policy, which began in 1970, aimed at creating a common market for fisheries products by providing for free access to the waters of all member states and introducing structural funds to ensure modernisation of the sector.[4] In 1976 it was agreed that, as from 1 January the following year, member states would extend their exclusive economic zone, which included the limit of their fishing zones, to a distance 200 nautical miles (370km) from their coastlines. In 1980 the EU concluded a fisheries agreement with Spain, which did not become a member of the EU until 1985,[5] which gave the latter (which had the largest fishing fleet in Europe) limited rights to fish in the waters of the member states. In 1983 concerns over the effect that equality of access might have on fishing stocks led to the introduction of certain controls, notably the concept of "total allowable catches" which set maximum quotas of fish which could be caught by each member state, and the British Fishing Boats Act 1983 (BFBA).[5] In 1985, with Spanish accession, everything changed and the BFBA no longer applied to the Spanish fishermen.[5]

As from 31 March 1989, fishing vessel registrations under the 1894 Act would lapse and the owners would be required to re-register under the 1988 Act. None of Factortame's vessels could satisfy the new requirements and an action for judicial review was brought by its owners in the Divisional Court of the High Court of Justice of England and Wales in December 1988.

On 19 June 1990 the ECJ court (as "full court" of 11 justices) en banc gave its ruling,[7] rephrasing the question posed as "whether a national court which, in a case before it concerning Community law, considers that the sole obstacle which precludes it from granting interim relief is a rule of national law, must disapply that rule". Following the Advocate-General's opinion, the ECJ held that a national court, in fact, has a duty to grant interim relief to safeguard alleged Community rights of individuals until the decision of the ECJ on the interpretation of Community law is available, and where a rule of national law would deny such relief, to set aside that rule. The basis of such a duty lies in the nature and object of directly effective Community law rights which are intended to be fully effective throughout the EU, and where, in order to safeguard such a right, it is necessary to grant interim measures, a national court must do so. This is especially true where a national court is awaiting a clarification or interpretation of the right claimed by the ECJ.