Kuwait Airways Corp v Iraqi Airways Corp

Kuwait Airways Corp v Iraqi Airways Corp

The judgment in favour of IAC on the issue of sovereign immunity was obtained by perjured evidence and deliberate suppression of material facts by IAC's directing minds. The new evidence demonstrates that IAC, on government instructions, took substantial steps to absorb the KAC aircraft into its fleet before 17 September 1990, including painting, insuring, registering, and preparing them for commercial use. These acts were not acts jure imperii but commercial acts, and the disparity between the perjured evidence and the true facts entirely changes the nature of the case. The earlier judgment must be set aside for fraud.

Parties
Claimant: Kuwait Airways Corporation; Defendant: Iraqi Airways Corporation
Jurisdiction
England and Wales
Judgment Date
24 January 2003
Procedural Posture
Civil Commercial / Judgment After Trial on Application to Set Aside Earlier Judgment for Fraud
Outcome
Judgment set aside for fraud; declaration of no state immunity for IAC for the period 9 August to 17 September 1990
Legal Topics
State Immunity, Fraud on the Court, Perjury, Act of State Doctrine, Conversion, Recognition of Foreign Law
International Law Commercial Law Civil Procedure State Immunity Fraud on the Court Perjury Act of State Doctrine Conversion +1 more

Case Brief

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Parties

Kuwait Airways Corporation

Claimant

Iraqi Airways Corporation

Defendant

Procedural Posture

Civil Commercial / Judgment After Trial on Application to Set Aside Earlier Judgment for Fraud

Legal Issues

  1. 1 Whether the judgment in favour of Iraqi Airways Corporation (IAC) on the issue of sovereign immunity should be set aside for fraud/perjury
  2. 2 Whether IAC's acts between 9 August and 17 September 1990 were acts jure imperii attracting state immunity
  3. 3 Whether new evidence demonstrates perjury and material non-disclosure by IAC in the earlier proceedings

Ratio Decidendi

The judgment in favour of IAC on the issue of sovereign immunity was obtained by perjured evidence and deliberate suppression of material facts by IAC's directing minds. The new evidence demonstrates that IAC, on government instructions, took substantial steps to absorb the KAC aircraft into its fleet before 17 September 1990, including painting, insuring, registering, and preparing them for commercial use. These acts were not acts jure imperii but commercial acts, and the disparity between the perjured evidence and the true facts entirely changes the nature of the case. The earlier judgment must be set aside for fraud.

Court Disposition

Judgment set aside for fraud; declaration of no state immunity for IAC for the period 9 August to 17 September 1990

Orders

  • The earlier judgment in favour of IAC on sovereign immunity is set aside.
  • Declaration that IAC is not entitled to state immunity for acts in relation to the KAC aircraft between 9 August and 17 September 1990.