Ross Leasing Ltd & Ors v Nile Air [2021] EWHC 2201 (Comm) (06 August 2021)

Ross Leasing Ltd & Ors v Nile Air [2021] EWHC 2201 (Comm) (06 August 2021)

There is a real and substantial risk that IATA may be required to pay the debt twice, as Canadian courts are unlikely to recognise compliance with an English TPDO as discharging IATA's liability to Nile Air. The debt under the ICCS agreement is situated in Quebec due to the exclusive jurisdiction clause, and the sums in the IATA Clearing House were not 'due or accruing due' at the relevant date. Therefore, the court should not make the final third party debt order.

Citation
[2021] EWHC 2201 (Comm)
Parties
Claimant: Ross Leasing Limited; Claimant: Westpark 1 Aircraft Leasing Limited; Claimant: Peregrine Aviation Bravo Limited; Defendant: Nile Air; Third Party: International Air Transport Association
Jurisdiction
England and Wales
Judgment Date
06 August 2021
Procedural Posture
Commercial Court Application for Final Third Party Debt Order / Interim Third Party Debt Order Hearing
Outcome
Application refused
Legal Topics
Third Party Debt Orders, Jurisdiction, Situs of Debt, Recognition of Foreign Judgments
Civil Procedure Conflict of Laws Commercial Law Third Party Debt Orders Jurisdiction Situs of Debt Recognition of Foreign Judgments

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Parties

Ross Leasing Limited

Claimant

Westpark 1 Aircraft Leasing Limited

Claimant

Peregrine Aviation Bravo Limited

Claimant

Nile Air

Defendant

International Air Transport Association

Third Party

Procedural Posture

Commercial Court Application for Final Third Party Debt Order / Interim Third Party Debt Order Hearing

Legal Issues

  1. 1 Whether the court has jurisdiction to make a final third party debt order where the situs of the debt is Quebec
  2. 2 Whether there is a real and substantial risk of the third party being required to pay the debt twice
  3. 3 Whether the sums held by IATA are 'debts due or accruing due' at the relevant dates

Ratio Decidendi

There is a real and substantial risk that IATA may be required to pay the debt twice, as Canadian courts are unlikely to recognise compliance with an English TPDO as discharging IATA's liability to Nile Air. The debt under the ICCS agreement is situated in Quebec due to the exclusive jurisdiction clause, and the sums in the IATA Clearing House were not 'due or accruing due' at the relevant date. Therefore, the court should not make the final third party debt order.

Court Disposition

Application refused

Orders

  • No final third party debt order is made.