Latest news with #ChristopherButcher
Yahoo
3 hours ago
- Business
- Yahoo
UK court rules insurers must pay more than $1bn for planes seized in Russia
The High Court in London has ruled that insurers must compensate aircraft leasing companies for losses exceeding $1bn related to jets stranded in Russia following the country's invasion of Ukraine in February 2022. This follows a lawsuit, led by leasing companies including Ireland's AerCap and Dubai Aerospace Enterprise (DAE), against insurers such as AIG, Lloyd's of London, Chubb and Swiss Re. Justice Christopher Butcher concluded that 147 aircraft and engines, valued at up to $4.7bn, were 'lost' on 10 March 2022, when Russian legislation banned the export of aircraft and equipment. Butcher attributed the loss to 'an act or order of the Russian government'. This allowed lessors to recover under their war risks insurance policies, rather than broader all risks policies. AerCap, an aircraft lessor, secured $1.035bn for 116 aircraft and 15 engines. This was stated by AerCap's law firm Herbert Smith Freehills Kramer. DAE, which sought to recover losses for 22 aircraft, managed to retrieve three but lost the rest, according to the Guardian. Other claimants included Dubai's Falcon and Genesis, Merx Aviation and KDAC Aviation Finance, which settled all its claims during the trial, Butcher said. The judge ruled that EU and US sanctions did not prevent insurers from indemnifying the lessors. The case, described by Butcher as 'an unusually demanding piece of litigation', followed Western sanctions that forced leasing companies to terminate contracts with Russian airlines by 28 March 2022. Russia subsequently re-registered many planes without owners' consent, prompting legal action in London and Dublin. "UK court rules insurers must pay more than $1bn for planes seized in Russia " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RTÉ News
2 days ago
- Business
- RTÉ News
AerCap can recover over $1 billion, UK court rules in case over jets 'lost' in Russia
The world's largest aircraft lessor AerCap can recover over $1 billion in relation to jets stuck in Russia since the invasion of Ukraine, London's High Court ruled today, though that is less than the roughly $2 billion it sought. The court ruled broadly in favour of leasing companies in a multi-billion-dollar legal dispute with insurers, following a mammoth trial of one of the biggest insurance disputes ever heard in London which concluded in February. The lawsuit had focused on almost 150 jets and some engines, previously with a total value of up to $4.7 billion, though settlements - including on the first day of the trial in October - have whittled the numbers down. Judge Christopher Butcher said in a summary of his ruling that the aircraft were lost and "that loss occurred on 10 March 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia". That meant the lessors could recover from their "war risks insurers", rather than under a broader all risks clause, as the cause of the loss was "an act or order of the Russian government", Butcher said. The judge also ruled that insurers were not prevented by EU or US sanctions from indemnifying the claimants for the loss of aircraft which had been leased to Russian airlines. AerCap's law firm Herbert Smith Freehills Kramer said the judgment secured $1.035 billion for AerCap, "in addition to substantial recoveries achieved in prior settlements". The $1.035 billion sum is, however, less than AerCap's claimed losses of over $2 billion had it been able to recover under its all risks policy. Butcher said in his ruling that Dublin-based AerCap had received just over $1.3 billion from six settlements between August and December 2023 with lessees and a Russian insurance company. AerCap, Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon and Genesis had led the claims against a string of insurers, including AIG, Lloyd's, Chubb and Swiss Re. KDAC settled all its claims during the trial, Butcher said in his ruling, while AerCap, DAE and other lessors have periodically disclosed partial settlements.
CNN
2 days ago
- Business
- CNN
World's largest aircraft owner can now claim over $1 billion in insurance over jets stuck in Russia
The world's largest aircraft lessor AerCap can recover more than $1 billion in relation to jets stuck in Russia since the invasion of Ukraine, London's High Court ruled Wednesday, though that is less than the roughly $2 billion it sought. The court ruled broadly in favor of leasing companies in a multi-billion-dollar legal dispute with insurers, following a mammoth trial in one of the biggest insurance disputes ever heard in London, which concluded in February. The lawsuit had focused on almost 150 jets and some engines, previously with a total value of up to $4.7 billion, though settlements – including on the first day of the trial in October – have whittled the numbers down. Judge Christopher Butcher said in a summary of his ruling that the aircraft were lost and 'that loss occurred on 10 March 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia.' That meant the lessors could recover the money lost from their 'war risks insurers,' rather than under a broader all risks clause, as the cause of the loss was 'an act or order of the Russian government', Butcher said. The judge also ruled that insurers were not prevented by European Union or US sanctions from indemnifying the claimants for the loss of aircraft that had been leased to Russian airlines. AerCap's law firm Herbert Smith Freehills Kramer said the judgment secured $1.035 billion for AerCap, 'in addition to substantial recoveries achieved in prior settlements.' Butcher said in his ruling that AerCap had received just over $1.3 billion from six settlements between August and December 2023 with lessees and a Russian insurance company. AerCap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance, Falcon and Genesis had led the claims against a string of insurers, including AIG (AIG), Lloyd's, Chubb and Swiss Re. KDAC settled all its claims during the trial, Butcher said in his ruling, while AerCap, DAE and other lessors have periodically disclosed partial settlements.
CNN
2 days ago
- Business
- CNN
World's largest aircraft owner can now claim over $1 billion in insurance over jets stuck in Russia
The world's largest aircraft lessor AerCap can recover more than $1 billion in relation to jets stuck in Russia since the invasion of Ukraine, London's High Court ruled Wednesday, though that is less than the roughly $2 billion it sought. The court ruled broadly in favor of leasing companies in a multi-billion-dollar legal dispute with insurers, following a mammoth trial in one of the biggest insurance disputes ever heard in London, which concluded in February. The lawsuit had focused on almost 150 jets and some engines, previously with a total value of up to $4.7 billion, though settlements – including on the first day of the trial in October – have whittled the numbers down. Judge Christopher Butcher said in a summary of his ruling that the aircraft were lost and 'that loss occurred on 10 March 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia.' That meant the lessors could recover the money lost from their 'war risks insurers,' rather than under a broader all risks clause, as the cause of the loss was 'an act or order of the Russian government', Butcher said. The judge also ruled that insurers were not prevented by European Union or US sanctions from indemnifying the claimants for the loss of aircraft that had been leased to Russian airlines. AerCap's law firm Herbert Smith Freehills Kramer said the judgment secured $1.035 billion for AerCap, 'in addition to substantial recoveries achieved in prior settlements.' Butcher said in his ruling that AerCap had received just over $1.3 billion from six settlements between August and December 2023 with lessees and a Russian insurance company. AerCap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance, Falcon and Genesis had led the claims against a string of insurers, including AIG (AIG), Lloyd's, Chubb and Swiss Re. KDAC settled all its claims during the trial, Butcher said in his ruling, while AerCap, DAE and other lessors have periodically disclosed partial settlements.
Mint
2 days ago
- Business
- Mint
Insurers Must Pay Up for Jets Seized by Russia, UK Judge Rules
Insurance companies must compensate aircraft lessors and owners for planes that Russia seized when it took counter-sanction measures after the invasion of Ukraine, a UK judge ruled potentially leaving insurers on the hook for billions in payouts. The verdict comes after a years-long legal stand off between aircraft lessors and owners including AerCap Holdings NV and Dubai Aerospace Enterprise Ltd., who sued the insurers, such as units of AIG and Lloyd's of London, over allegations they failed to cover the hundreds of leased planes that were held by Russia after sanctions forced termination of the deals. The ruling relates to 147 planes and 16 engines that had insurance claims worth $4.5 billion attached. While it's a victory for the lessors, the judge clarified what kind of insurance policies covered the losses, meaning not everything would be covered. 'The judgment concludes that the aircraft have been lost' after Russian legislation that banned the export of the planes and equipment in March 2022, Judge Christopher Butcher said in a summary of the ruling. The lessors can claim compensation for the lost jets from their policies that covered war risks but not under policies that covered all risks, the judge said. The UK High Court ruling could set the tone for other similar high-stakes legal battles in the UK as well as Ireland and the US. Russia transfered hundreds of foreign-owned jets to its own aircraft register after contracts were terminated. But a number of insurers and lessors reached settlements for some aircraft before and during the trial. AerCap's initial case for $3.4 billion was cut to around $2 billion after settlements and claims by other lessors ran into hundreds of millions of dollars, according to court filings. Aercap's cover under war risks is limited to $1.2 billion, according to the judgment. Until February last year, AerCap's 116 jets and 15 engines remained in Russia, used by 15 airlines including Aeroflot. Insurers denied the claims during the hearing. The planes weren't lost as Russian airlines continued to use them and specific exclusions in the policies applied, lawyers for some of the insurers argued. 'It's a reassuring outcome,' said Julian Acratopulo, a lawyer for aircraft lessors, including Dubai Aerospace. Vladimir Putin's 'invasion of Ukraine and subsequent restraint of over 400 commercial aircraft was the paradigm scenario the owners thought that they had insured against.' AIG declined to comment while spokespeople for Aercap and LLoyd's of London didn't respond to requests for comment. This article was generated from an automated news agency feed without modifications to text.
