Aircraft Purchase Fleet Ltd v Compagnia Aerea Italiana Spa

Aircraft Purchase Fleet Ltd v Compagnia Aerea Italiana Spa

APFL was unable to perform its obligations under the Framework Agreement independently of any alleged renunciation by CAI; CAI's stance regarding A319s did not cause or materially contribute to Airbus' termination or refusal to reinstate deliveries. APFL failed to establish causation and thus CAI has a complete defence to APFL's claim for damages. APFL is liable under the indemnity provision for a limited sum as Toto defaulted on payment due before the cut-off date.

Parties
Claimant: Aircraft Purchase Fleet Limited; Defendant: Compagnia Aerea Italiana SpA
Jurisdiction
England and Wales
Judgment Date
30 November 2018
Procedural Posture
Commercial Claim / Final Judgment
Outcome
Claim dismissed; counterclaim partially allowed
Legal Topics
Renunciation of Contract, Impossibility of Performance, Damages, Counterclaim, Indemnity, Aircraft Leasing
Contract Law Commercial Law Renunciation of Contract Impossibility of Performance Damages Counterclaim Indemnity Aircraft Leasing

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Parties

Aircraft Purchase Fleet Limited

Claimant

Compagnia Aerea Italiana SpA

Defendant

Procedural Posture

Commercial Claim / Final Judgment

Legal Issues

  1. 1 Whether CAI renounced the Framework Agreement
  2. 2 Whether APFL was able to perform its obligations under the Framework Agreement
  3. 3 Causation between CAI's alleged renunciation and APFL's inability to perform

Ratio Decidendi

APFL was unable to perform its obligations under the Framework Agreement independently of any alleged renunciation by CAI; CAI's stance regarding A319s did not cause or materially contribute to Airbus' termination or refusal to reinstate deliveries. APFL failed to establish causation and thus CAI has a complete defence to APFL's claim for damages. APFL is liable under the indemnity provision for a limited sum as Toto defaulted on payment due before the cut-off date.

Court Disposition

Claim dismissed; counterclaim partially allowed

Orders

  • APFL's claim for damages is dismissed
  • CAI is entitled to judgment for €276,118.11 plus interest from 11 December 2013