London's High Court has ruled that a $10 billion legal battle between reinsurers and aircraft leasing companies regarding over 200 jets grounded in Russia should be adjudicated in London,

rather than Moscow.

Aircraft lessors, including prominent firms like Ireland's AerCap and U.S.-based Carlyle Aviation Partners, are seeking compensation from insurers following the grounding of their jets in Russia due to the Ukraine conflict. They argued that holding the legal proceedings in London would mitigate the risk of biased hearings or inconsistent judgments.

However, some major reinsurers, such as AIG, AXA, and certain Lloyd's of London syndicates, advocated for the disputes to be heard in Russia, citing provisions in the insurance policies stipulating Moscow as the venue for resolving conflicts.

Notably, approximately 35 reinsurers, including industry heavyweights Swiss Re and Chubb, consented to the jurisdiction of English courts in the matter.

In his written ruling, Judge Andrew Henshaw concluded that the cases should proceed in London, expressing doubts about the prospects of a fair trial in Russia.

Carlyle Aviation Partners welcomed the decision, affirming their intent to vigorously pursue their claims against insurers in London courts.

The dispute stems from "operator" policies, through which Russian airlines leased jets from international lessors, insured them with Russian insurers, and reinsured the policies through the London market. The lessors, as named insured parties, can also directly claim under certain circumstances.

Furthermore, some lessors, led by AerCap, are pursuing lawsuits under "contingent and possessed" policies in London, Dublin, and select U.S. states. A "mega trial" is slated for October in London.

Recent settlements with Russia have reduced the scope of claims. While initially involving 306 aircraft and 40 engines, settlements have brought down the figures to 208 aircraft and 31 engines, according to Judge Henshaw's ruling. Photo by Bjørn Erik Pedersen, Wikimedia commons.