The Court of Appeal (CoA) has upheld a finding that several Dublin-registered international aircraft leasing firms are entitled to certain documentation from insurers who have allegedly refused to provide indemnity for the loss of airplanes detained in Russia.
The aircraft in question, valued at over €1 billion, were not returned when the companies sought their returns following Russia's invasion of Ukraine in early 2022.
The actions have been brought in six sets of proceedings by groups companies including the SMBC Aviation Capital Ltd, Global Aviation Ltd and Wilmington Trust SP Services (Dublin) Ltd, BOC Aviation Ltd, Silver Aviation Ltd, CDB Lease Finance DAC and GY Aviation.
Their actions are against several international insurers for declining to cover losses under either "all risks" or "war risks" policies.
The insurers include Lloyds, Swiss Re International SE, Chubb European Group SE, Global Aerospace Underwriting Managers (Europe) SAS and AIG Europe SA, Tokio Marine Europe, and Taiping General Insurance Zhejiang Branch Co Ltd.
The insurers deny, for various reasons, that the war risk cover was engaged following Russia's invasion of Ukraine.
In a ruling on a preliminary issue raised in the actions earlier this year, Mr Justice Denis McDonald in the Commercial Court found that the plaintiff groups were entitled to the discovery of certain disputed documentation from the defendant insurers.
The materials include documents relating to notices of cancellation in respect of aviation assets in Russia, Ukraine, Crimea and Belarus from February 1st to March 31st, 2022.
The plaintiffs claim they need the material in order to progress their claims.
The defendants had opposed the application, and had argued that discovery of the material was not necessary.
Appeal
The insurers appealed that decision to the CoA, on grounds including that the application for discovery of the material in question amounted to an "impermissible fishing" of allegations that have not been pleaded by the plaintiffs.
In its judgement, the CoA, comprised of Ms Justice Caroline Costello, Mr Justice Senan Allen and Mr Justice Brian O'Moore, unanimously dismissed the appeal.
Giving the court's decision, Ms Justice Costello said that the aircraft were subject to aircraft lease agreements between one or other of the various firms and Russian airlines.
Following the imposition of EU sanctions on Russia, the firms sought the return of the aircraft, but it has not been possible to recover them, she said.
When they called on the insurers to confirm cover for the aircraft, the defendants declined to do so, they claim.
The fallout from the Russian invasion of Ukraine, Ms Justice Costello said, has been "immense and felt throughout the world".
The parties taking the actions "are just part of that fallout", she said, adding that it is the plaintiffs' cases that the vast majority of the aircraft leased to Russian airlines have been unlawfully retained in that country.
She said the appeal was being dismissed on grounds that the material sought did not amount to impermissible fishing by the plaintiffs.
The judge added that just because the High Court had refused to order discovery on a different category of material was not a reason why the courts should have also rejected the applicant for other categories where discovery had been ordered.
The CoA also held that the documents sought by the plaintiffs are relevant to the issues raised in the proceedings.
The full hearing of the claims will return before the Commercial Court at a later date.
