Western insurers have lost the right to appeal a major London High Court judgment that could see aircraft lessors recover more than US$1 billion from war-risk insurance policies for jets stranded in Russia after the 2022 invasion of Ukraine.
The High Court’s refusal to permit insurers to appeal the decision marks a significant development in one of the largest legal battles in aviation insurance history. Judge Christopher Butcher denied permission on all grounds, although decisions on legal costs will be determined at a later date.
Originally, lessors including AerCap (Ireland-based), Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon and Genesis brought claims against a group of global insurers, such as AIG, Lloyd’s, Chubb, Swiss Re and HDI Global Specialty, seeking compensation for almost 150 aircraft and some engines that remain in Russia due to export bans and sanctions.
In June, the court held that the affected aircraft met the legal definition of “lost” under the applicable war-risk insurance policies, allowing lessors to recover significant sums, although attempts to claim under broader “all-risks” coverage were rejected.
The case has become a bellwether for similar litigation globally, with related claims progressing in other jurisdictions, including the United States.
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