Clifford Chance and HSF Kramer score win in $4.5bn aviation 'mega trial'

In one of the largest insurance claims in English legal history, the High Court has ruled that insurers must pay over $4.5 billion to aircraft lessors for planes stranded in Russia after the 2022 invasion of Ukraine.

Stranded aircraft

The case saw six major lessors including Ireland-headquartered AerCap, the world’s largest aircraft owner, and Dubai Aerospace Enterprise (DAE) sue their insurers for aircraft detained in Russia after Vladimir Putin stopped them from leaving the country in response to European sanctions.

At stake were 147 aircraft, 16 engines, and other equipment valued at over $4.5 billion. The trial alone lasted five months and involved more than 50 counsel.

The central question was whether the aircraft were lost because of a business decision by Russian airlines or government action.

Mr Justice Butcher sided with the lessors, ruling that the Russian government's export ban in March 2022, rather than a commercial choice, restricted the movement of the aircraft. As a result, the court ordered insurers to pay out under their "war risks" policies.

Advising

The case involved armies of lawyers on both sides. Leading the charge were Clifford Chance and HSF Kramer.

A CC team led by London partners Julian Acratopulo and Philip Hill represented three of the lessors including DAE.

HSF Kramer, led by partners Alexander Oddy, Gregg Rowan, Fiona Treanor and Antonia Pegden, represented AerCap which ​​acted as the lead claimant given the size of its claim.

Kennedys, Stephenson Harwood, CMS, Clyde & Co and RPC were among the other City firms that acted on the dispute.