Salam Air SAOC v Latam Airlines Group SA [2020] EWHC 2414 (Comm) (08 September 2020)

Salam Air SAOC v Latam Airlines Group SA [2020] EWHC 2414 (Comm) (08 September 2020)

SalamAir failed to establish a strong case for frustration of the aircraft leases; the contractual terms placed all risk of non-use on SalamAir, and the court will not interfere with the operation of SBLCs absent fraud or express contractual restriction. The enhanced merits test was not met.

Citation
[2020] EWHC 2414 (Comm)
Parties
Claimant: Salam Air SAOC; Defendant: Latam Airlines Group SA
Jurisdiction
England and Wales
Judgment Date
08 September 2020
Procedural Posture
Injunction Application (without Notice) / First Instance Judgment
Outcome
Application refused
Legal Topics
Injunctions, Letters of Credit, Frustration of Contract, Aircraft Leasing
Commercial Law Contract Law Injunctions Letters of Credit Frustration of Contract Aircraft Leasing

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Salam Air SAOC

Claimant

Latam Airlines Group SA

Defendant

Procedural Posture

Injunction Application (without Notice) / First Instance Judgment

Legal Issues

  1. 1 Whether the court should grant an injunction restraining Latam from making demand under standby letters of credit
  2. 2 Whether SalamAir has a sufficiently arguable case that the Aircraft Leases have been frustrated by Covid-19 regulations

Ratio Decidendi

SalamAir failed to establish a strong case for frustration of the aircraft leases; the contractual terms placed all risk of non-use on SalamAir, and the court will not interfere with the operation of SBLCs absent fraud or express contractual restriction. The enhanced merits test was not met.

Court Disposition

Application refused