Kuwait Airways Corp v Iraqi Airways Co [2004] EWHC 2603 (Comm) (12 November 2004)

Kuwait Airways Corp v Iraqi Airways Co [2004] EWHC 2603 (Comm) (12 November 2004)

IAC is liable for conversion of KAC's aircraft spares from 9 August 1990, with quantum to be assessed based on market value, deductions for recovered/remaindered spares, and additional heads of loss as proven. Sovereign immunity does not protect IAC for acts after 9 August 1990 due to fraudulent evidence and commercial nature of conduct. Damages include interim payments, warehousing, customs, and user damages as assessed.

Citation
[2004] EWHC 2603 (Comm)
Parties
Claimant: Kuwait Airways Corporation; Defendant: Iraqi Airways Company
Jurisdiction
England and Wales
Judgment Date
12 November 2004
Procedural Posture
Commercial Court Action for Conversion and Damages / Judgment Following Trial and Multiple Appeals
Outcome
Judgment for Claimant (KAC) against Defendant (IAC) for conversion and damages; quantum assessed and interim payments ordered.
Legal Topics
Conversion, Sovereign Immunity, Damages Assessment, Fraud/perjury, Aircraft Leasing, Disclosure, Remedies
Tort International Law Commercial Law Conversion Sovereign Immunity Damages Assessment Fraud/perjury Aircraft Leasing +2 more

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Parties

Kuwait Airways Corporation

Claimant

Iraqi Airways Company

Defendant

Procedural Posture

Commercial Court Action for Conversion and Damages / Judgment Following Trial and Multiple Appeals

Legal Issues

  1. 1 Whether IAC is liable for conversion of KAC's aircraft spares
  2. 2 Assessment of quantum for converted spares
  3. 3 Effect of sovereign immunity on liability

Ratio Decidendi

IAC is liable for conversion of KAC's aircraft spares from 9 August 1990, with quantum to be assessed based on market value, deductions for recovered/remaindered spares, and additional heads of loss as proven. Sovereign immunity does not protect IAC for acts after 9 August 1990 due to fraudulent evidence and commercial nature of conduct. Damages include interim payments, warehousing, customs, and user damages as assessed.

Court Disposition

Judgment for Claimant (KAC) against Defendant (IAC) for conversion and damages; quantum assessed and interim payments ordered.

Orders

  • IAC to pay KAC US$148,468,609 by way of interim payment (including US$78,183,155 plus US$70,285,454 interest).
  • IAC to pay further sums for damages and costs as assessed in Main Aircraft Action and Perjury Action.