Judgment in the multi-billion-dollar Russian Aircraft Lessor Policy Claims has been handed down today, Wednesday 11 June 2025 ([2025] EWHC 1430 (Comm)). This was a highly significant and valuable commercial dispute in which no fewer than 29 members of 7KBW were instructed by Claimants, All Risks (AR) and War Risks (WR) insurers, with most of the major speaking roles at trial being filled by members of Chambers.
A copy of the Judgment is available here.
The case concerned insurance claims brought by aircraft lessors against AR and WR insurers. Following Russia’s invasion of Ukraine in February 2022, the lessors demanded the return of nearly 150 aircraft which were leased to various Russian airlines, but the airlines did not return them. The lessors claimed for the total loss of these aircraft. A significant issue (amongst many) was whether the alleged loss was caused by war perils, in which case any loss would attach under the WR insurance and would be excluded under the AR insurance.
On this central issue, Mr Justice Butcher held that the aircraft were lost on 10 March 2022, and that the proximate cause of the loss was the peril of “restraint” and/or “detention”, in the form of Government Resolution 311, the effect of which was to ban the return from Russia of leased aircraft and engines to lessors. Consequently, the loss is covered under the WR insurance and excluded under the AR insurance.
In the course of a lengthy judgment, Mr Justice Butcher considered numerous issues of general importance to insurance lawyers including: the test for loss in the context of deprivation of possession of insured property; the meaning and effect of the Political Peril (“act…for…political purposes”) and the Government Perils (including “restraint” and “detention”); principles of proximate causation, including where there are concurrent independent causes of an insured loss; and the “grip of peril” doctrine, amongst many others.
7KBW dominated the counsel representation at the trial, with the following parties represented by Members of Chambers:
- For Dubai Aerospace Enterprise (DAE) Ltd and others and Falcon 2019-1 Aircraft 3 Limited: Alistair Schaff KC, Rebecca Sabben-Clare KC, Alexander MacDonald, Sandra Healy, Frederick Alliott and Daniel Corteville instructed by Clifford Chance.
- For KDAC Aircraft Trading 2 Limited: Alexander MacDonald instructed by Clifford Chance.
- For AIG Europe SA and other all risks insurers: Gavin Kealey KC, Andrew Wales KC, Clara Benn and Sophie Hepburn with David Murray of Fountain Court, instructed by HFW.
- For Global all risks insurers: Jonathan Gaisman KC, Adam Fenton KC, Siobán Healy KC, Keir Howie, Jason Robinson and Charles Littlewood instructed by Wikborg Rein.
- For Lloyds Insurance Co SA and other war risks insurers: Richard Waller KC, Jawdat Khurshid KC, Michael Ryan and Joshua Fung instructed by Kennedys.
- For Fidelis Underwriting Limited: Dominic Kendrick KC, Peter MacDonald Eggers KC, Timothy Kenefick and Rebecca Jacobs instructed by RPC.
- For Swiss Re International SE: S J Phillips KC, Elizabeth Lindesay, Harry Wright and James Goudkamp instructed by Penningtons Manches Cooper.
- For Liberty Mutual Insurance Europe SA and Lancashire Insurance Company (UK) Limited: David Bailey KC instructed by Kennedys Legal Solutions Pte. Ltd.
