Insurance companies’ attempts to transfer litigation regarding €15bn worth of aircraft, seized in Russia following its invasion of Ukraine, from London to Moscow have been rejected by High Court judge Christopher John Butcher in London.
Despite insurance contracts stipulating that disputes should be resolved in Russia under Russian law, legal sources argued against such an arrangement, emphasising the complexities of cross-border litigation and the challenges of navigating conflicting jurisdictional issues.
The litigation involving the aircraft, caught in the aftermath of the Ukrainian conflict and subject to significant legal proceedings, remains under the jurisdiction of the UK legal system, following the High Court’s dismissal of the relocation efforts.
Approximately 20 insurers and reinsurers, including AIG, Axa, and Lloyd’s of London syndicates, sought to have claims related to around 400 seized aircraft heard in Russia, in opposition to the ongoing legal proceedings in the London High Court.
The High Court in London consolidated a group of 40 damages claims initiated by aircraft lessors like AerCap, Aircastle, Carlyle Aviation Partners, and Merx Aviation against the insurance firms involved in the case, with additional lessors such as Avolon, SMBC Aviation Capital, and Bank of China Aviation joining the legal action.
Avolon, among the lessors, pursued a separate legal action in Ireland against its insurers, which is interconnected with the broader litigation concerning insurance and reinsurance policies of Russian airlines to which lessors had leased aircraft, ultimately leading to disputes involving Russian and London-based insurance companies.
The trial involving aircraft leasing giants litigating against insurers in Dublin has also faced difficulties due to the high-profile nature of the cases taken by lessors like SMBC Aviation Capital, BOC Aviation, CDB Lease Finance, and Wilmington Trust, which centre on aircraft assets seized in Russia post its invasion of Ukraine in 2022, and the limited space for major trials available in Irish courts.
The litigation in Ireland revolve around the alleged refusal of insurers such as Lloyds, AIG, Chubb, and Swiss Re to provide coverage for losses under ‘all risks’ or ‘war risks’ policies, reflecting the complex legal battles unfolding in multiple jurisdictions as a result of the aircraft seizure aftermath.
