Insurance Companies Unsuccessful in Appealing London Ruling Concerning Jet Losses in Russia
In a significant ruling, western insurers have lost their bid to appeal a London High Court judgment that awards aircraft lessors over $1 billion from their war risks insurance policies. The decision marks a milestone in one of the largest lawsuits to be heard in London.
The legal dispute, which has been ongoing for some time, involved insurers such as Allianz Global Corporate & Specialty SE (AGCS) and the insurance syndicate at Lloyd’s, along with several aircraft lessors. The case centred around damages to aircraft and engines, with nearly 150 jets and some engines, valued at up to $4.7 billion, being at the heart of the matter.
AerCap, the world's largest lessor and the biggest claimant in London, has stated that their legal expenses alone ran to around 81 million pounds. Other lessors involved in the case include Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance, Falcon, and Genesis.
The lawsuit triggered a battle in London between all risks and war risks insurers over who should pay which costs. AerCap, along with other lessors, had hoped to secure a higher payout under their uncapped all risks cover, but these hopes were blocked.
However, not all parties involved in the dispute have been unsuccessful. KDAC settled all its claims during the trial, and AerCap struck a deal with Swiss Re and HDI. Similarly, DAE settled with all war risks insurers. Merx, on the other hand, settled with all war risks insurers apart from Fidelis.
Judge Christopher Butcher, who presided over the case, has refused permission to appeal on all grounds. This final decision brings a close to a legal battle that has been closely watched by the industry, as it has the potential to set a precedent for similar cases fought in other jurisdictions, such as the United States.
The final decision regarding legal costs will be made at a later date. Settlements during the trial have reduced the number of claims, but the impact of this ruling on the insurance industry is expected to be significant. The case serves as a reminder of the importance of clear and comprehensive insurance policies in the aviation sector.
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