CBD Aviation Lease Finance DAC & Ors v Llyod's Insurance Company S.A & Ors (Approved) [2023] IECA 273 (09 November 2023)

CBD Aviation Lease Finance DAC & Ors v Llyod's Insurance Company S.A & Ors (Approved) [2023] IECA 273 (09 November 2023)

The Court of Appeal held that the disputed category of documents—insurers' internal discussions or consideration of cancellation notices—are relevant under the Peruvian Guano test because they may contain information about the factual circumstances in Russia and the timing and effect of the peril, which are central to the issues in dispute. The Court found that the High Court did not err in ordering discovery, as the documents could reasonably assist the respondents' case or undermine the appellants' case, and the application of the 'grip of the peril' doctrine in this context is unsettled in Irish law. The appeal was dismissed.

Citation
[2023] IECA 273
Parties
Plaintiff/respondent: SMBC Aviation Capital Limited; Plaintiff/respondent: Global Aviation Equipment Leasing Ireland Limited; Plaintiff/respondent: Wilmington Trust SP Services (Dublin) Limited; Defendant/appellant: Lloyd’s Insurance Company S.A.; Defendant/appellant: HDI Global Specialty S.E.; Defendant/appellant: Swiss Re International S.E., Niederlassung Deutschland; Defendant/appellant: Chubb European Group S.E.; Defendant/appellant: Fidelis Insurance Ireland D.A.C.; Defendant/appellant: Global Aerospace Underwriting Managers (Europe) SAS; Defendant/appellant: Great Lakes Insurance S.E.; Defendant/appellant: AIG Europe S.A.; Defendant/appellant: SCOR Europe S.E.; Defendant/appellant: Starr Europe Insurance Limited; Defendant/appellant: Mitsui Sumitomo Insurance Company Limited; Defendant/appellant: Great Lakes Insurance SE; Defendant/appellant: Berkshire Hathaway European Insurance Designated Activity Company; Defendant/appellant: Tokio Marine Europe S.A.; Defendant/appellant: Mapfre Espana Compania de Seguros y Reaseguros S.A.; Defendant/appellant: MSIG Insurance Europe A.G.; Plaintiff/respondent: BOC Aviation (Ireland) Limited; Plaintiff/respondent: BOC Aviation Limited; Plaintiff/respondent: Silver Aircraft Leasing (Ireland) 2 Limited; Plaintiff/respondent: CDB Aviation Lease Finance Designated Activity Company; Plaintiff/respondent: GY Aviation Lease 1818 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1830 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1817 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1852 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1702 Co., Limited; Plaintiff/respondent: GY Aviation Lease 0906 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1856 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1712 Co., Limited; Plaintiff/respondent: GY Aviation Lease 1713 Co., Limited; Defendant/appellant: Convex Europe S.A.; Defendant/appellant: Axis Specialty Europe SE; Defendant/appellant: SiriusPoint International Insurance Corporation (Public); Defendant/appellant: Generali IARD S.A.; Defendant/appellant: Helvetia Assurances S.A.; Defendant/appellant: MMA IARD S.A.; Defendant/appellant: SMA S.A.; Defendant/appellant: Ping An Property & Casualty Insurance Company of China Limited; Defendant/appellant: Global Aerospace Underwriting Managers Limited; Defendant/appellant: Berkshire Hathaway European Insurance DAC; Defendant/appellant: Mapfre Espana, Compania de Seguros y Reaseguros, S.A.; Defendant/appellant: MSIG Insurance Europe AG; Defendant/appellant: PICC Property and Casualty Company Limited; Defendant/appellant: Ping An Roperty & Casualty Insurance Company of China; Defendant/appellant: China Pacific Property Insurance Co Ltd; Defendant/appellant: Taiping General Insurance Zhejiang Branch Co Ltd
Jurisdiction
Ireland
Judgment Date
09 November 2023
Procedural Posture
Civil Appeal / Appeal From High Court Discovery Order
Outcome
Appeal dismissed; High Court discovery order affirmed.
Legal Topics
Discovery, War Risks Insurance, Relevance of Evidence, Interpretation of Insurance Policies
Insurance Law Civil Procedure Discovery War Risks Insurance Relevance of Evidence Interpretation of Insurance Policies

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Parties

SMBC Aviation Capital Limited

Plaintiff/respondent

Global Aviation Equipment Leasing Ireland Limited

Plaintiff/respondent

Wilmington Trust SP Services (Dublin) Limited

Plaintiff/respondent

Lloyd’s Insurance Company S.A.

Defendant/appellant

HDI Global Specialty S.E.

Defendant/appellant

Swiss Re International S.E., Niederlassung Deutschland

Defendant/appellant

Chubb European Group S.E.

Defendant/appellant

Fidelis Insurance Ireland D.A.C.

Defendant/appellant

Global Aerospace Underwriting Managers (Europe) SAS

Defendant/appellant

Great Lakes Insurance S.E.

Defendant/appellant

AIG Europe S.A.

Defendant/appellant

SCOR Europe S.E.

Defendant/appellant

Starr Europe Insurance Limited

Defendant/appellant

Mitsui Sumitomo Insurance Company Limited

Defendant/appellant

Great Lakes Insurance SE

Defendant/appellant

Berkshire Hathaway European Insurance Designated Activity Company

Defendant/appellant

Tokio Marine Europe S.A.

Defendant/appellant

Mapfre Espana Compania de Seguros y Reaseguros S.A.

Defendant/appellant

MSIG Insurance Europe A.G.

Defendant/appellant

BOC Aviation (Ireland) Limited

Plaintiff/respondent

BOC Aviation Limited

Plaintiff/respondent

Silver Aircraft Leasing (Ireland) 2 Limited

Plaintiff/respondent

CDB Aviation Lease Finance Designated Activity Company

Plaintiff/respondent

GY Aviation Lease 1818 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1830 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1817 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1852 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1702 Co., Limited

Plaintiff/respondent

GY Aviation Lease 0906 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1856 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1712 Co., Limited

Plaintiff/respondent

GY Aviation Lease 1713 Co., Limited

Plaintiff/respondent

Convex Europe S.A.

Defendant/appellant

Axis Specialty Europe SE

Defendant/appellant

SiriusPoint International Insurance Corporation (Public)

Defendant/appellant

Generali IARD S.A.

Defendant/appellant

Helvetia Assurances S.A.

Defendant/appellant

MMA IARD S.A.

Defendant/appellant

SMA S.A.

Defendant/appellant

Ping An Property & Casualty Insurance Company of China Limited

Defendant/appellant

Global Aerospace Underwriting Managers Limited

Defendant/appellant

Berkshire Hathaway European Insurance DAC

Defendant/appellant

Mapfre Espana, Compania de Seguros y Reaseguros, S.A.

Defendant/appellant

MSIG Insurance Europe AG

Defendant/appellant

PICC Property and Casualty Company Limited

Defendant/appellant

Ping An Roperty & Casualty Insurance Company of China

Defendant/appellant

China Pacific Property Insurance Co Ltd

Defendant/appellant

Taiping General Insurance Zhejiang Branch Co Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Discovery Order

Legal Issues

  1. 1 Whether internal insurer documents regarding cancellation notices are relevant and discoverable in litigation over war risks insurance coverage for aircraft stranded in Russia after the 2022 invasion of Ukraine.
  2. 2 Whether the 'grip of the peril' doctrine applies and if subjective insurer understanding is relevant to its application.
  3. 3 Whether the High Court erred in ordering discovery of documents evidencing insurer discussions or consideration of cancellation notices.

Ratio Decidendi

The Court of Appeal held that the disputed category of documents—insurers' internal discussions or consideration of cancellation notices—are relevant under the Peruvian Guano test because they may contain information about the factual circumstances in Russia and the timing and effect of the peril, which are central to the issues in dispute. The Court found that the High Court did not err in ordering discovery, as the documents could reasonably assist the respondents' case or undermine the appellants' case, and the application of the 'grip of the peril' doctrine in this context is unsettled in Irish law. The appeal was dismissed.

Court Disposition

Appeal dismissed; High Court discovery order affirmed.

Orders

  • Appellants to make discovery of all documents evidencing any discussion or consideration of proposed or actual Notices of Cancellation in respect of the Aviation Assets in Russia, Ukraine, Crimea/Republic of Crimea and/or Belarus for the period 1 February 2022 to 31 March 2022.