The Commercial Court (Butcher J) has handed down judgment in the multi-billion-dollar Russian Aircraft Lessor Policy Claims. This was a highly significant and valuable insurance dispute involving no fewer than 15 members of Chambers. The 11.5-week trial was one of The Lawyer’s Top 20 cases of 2024.

The claims arose in the context of market-wide insurance litigation concerning the non-return of Western-owned aircraft by Russian airlines in the aftermath of Russia’s invasion of Ukraine in February 2022. The trial concerned claims for in excess of US$3 billion by Lessor owners on their contingent and possessed insurance policies in relation to 145 aircraft on lease to Russian airlines at that time. The Court directed a concurrent trial of six actions brought by different Lessors.

In a 230-page judgment, Butcher J held that:

  • the aircraft were lost by reason of deprivation of possession;
  • the date of loss was 10 March 2022;
  • the proximate cause of the loss was Russian Government Resolution 311, which banned the return of leased aircraft to Western Lessors, and qualified as a “restraint” and/or “detention” within the meaning of the war risks perils; and
  • accordingly, the loss was excluded from the all risks insurance and covered under the war risks insurance.

The claims against war risks insurers succeeded on that basis, save for a claim by GASL Ireland Leasing A-1 Limited against Tokio Marine Kiln Syndicate 510 (which failed on the basis that cover had been cancelled by the insurer prior to the loss of the aircraft).

In the course of the judgment, Butcher J considered various issues of general importance, including (among many others): the test for loss by reason of deprivation of possession in a non-marine insurance policy, the proper construction of the war risks perils (“act…for…political purposes”, “restraint” and “detention”), principles of proximate causation (including where there are independent concurrent causes), and the “grip of peril” doctrine.

The judgment is available here.

David Railton KC, Simon Atrill KC, Adam Sher, Ian Bergson and Joseph Leech acted with various other counsel for a number of war risks insurers (including Lloyds Insurance Company SA), instructed by Kennedys Law LLP.

Akhil Shah KC, James Duffy KC, Nick Daly and Max Kasriel acted for Tokio Marine Kiln and HDI Global Specialty in their war risks capacities, instructed by CMS Cameron McKenna Nabarro Olswang LLP.

James Cutress KC, Adam Sher, Simon Paul and Ian Bergson acted for AIG Europe SA in its war risks capacity, instructed by Stephenson Harwood LLP.

Ben Lynch KC, Nathalie Koh and Daniel Schwennicke acted with various other counsel for Chubb European Group SE, instructed by Clyde & Co LLP.

David Murray (led by Gavin Kealey KC of 7 King’s Bench Walk, and with various other counsel) acted for the HFW All Risks Insurers, instructed by Holman Fenwick Willan LLP.

A number of other members of Chambers have also been involved in different aspects of the case.