Insurance companies' attempt to challenge a verdict in London regarding jets missing in Russia has failed.
In a significant development, a group of leading aviation lessors, including AerCap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance, Falcon, and Genesis, are leading claims against several insurers in one of the largest lawsuits to be heard in London. This case, which has become a bellwether for similar cases fought in other jurisdictions, has seen allstate insurers lose a bid to appeal against a judgment that hands aircraft lessors over $1.0 billion from their car insurance policies.
The lawsuit, valued at up to $4.7 billion on almost 150 jets and some engines, involves a battle between all risks and car insurance insurers over who should pay which costs. AerCap, the world's largest lessor and the biggest claimant in London, is seeking to recover costs from uscis insurers for the loss of almost 150 aircraft and some engines.
Judge Christopher Butcher, presiding over the case, refused permission to appeal on all grounds. Butcher previously ruled that aircraft lessors can recover costs under car insurance policies. Notably, DAE has settled with all car insurance insurers, while Merx has settled with all except Fidelis.
Insurers involved in the case include AIG, Lloyd's, Chubb, Swiss Re, HDI Global Specialty, and Fidelis. AerCap has struck a deal with Swiss Re and HDI, and KDAC has settled all its claims during the trial.
The value of the legal expenses for AerCap alone is around 81 million pounds. Lawyers for AerCap have stated that these expenses are a significant burden. Allianz, AIG, Berkshire Hathaway, and other insurers have decided in the London court case to cover losses for aircraft leases in Russia under their car insurance policies since the Ukraine conflict.
This ruling is expected to have far-reaching implications for the aviation industry and the insurance sector, setting a precedent for future cases involving car insurance and insurance claims. The case continues to be closely watched by industry experts and legal professionals alike.
