Zephyrus Capital Aviation Partners 1d Limited & Ors v Fidelis Underwriting Limited & Ors
[2024] EWHC 734 (Comm)
AerCap Ireland Limited v AIG Europe SA & Ors
29 January 2024
[2024] EWHC 144 (Comm)
High Court
An aircraft leasing company sued its insurers. To win, they needed documents from insurance brokers who worked with a Russian airline. The brokers worried giving the documents might break UK sanctions laws against Russia. The judge said providing documents to the court, as ordered, doesn't break those laws and ordered the brokers to provide them.
Key Facts
- •AerCap, an aircraft lessor, seeks third-party disclosure from insurance brokers (Respondents) under CPR PD 57AD para. 31.17.
- •The disclosure relates to documents evidencing contracts of insurance and reinsurance under AerCap's Operator Policies, concerning aircraft leased to a Russian airline.
- •The First Respondent, McGill, opposes the application due to concerns about breaching UK sanctions against Russia.
- •AerCap argues the documents are necessary to fairly dispose of the proceedings, particularly regarding the scope of lessee policies.
- •McGill's role was as a reinsurance placing broker for Sealine Insurance Brokers Ltd., a Russian broker.
- •The ECJU provided guidance suggesting disclosure may not breach sanctions, but McGill remained concerned.
Legal Principles
Third-party disclosure under CPR PD 57AD para. 31.17 requires that the documents are likely to support the applicant's case or adversely affect another party's case and that disclosure is necessary for fair disposal of proceedings or cost saving.
CPR PD 57AD para. 31.17
Interpretation of sanctions regulations requires consideration of the words' context and the provision's purpose. The purpose of the Russia (Sanctions) (EU Exit) Regulations 2019 is to negatively impact Russia.
Russia (Sanctions) (EU Exit) Regulations 2019; Celestial Aviation Services Ltd v Unicredit Bank AG (London Branch) [2023] EWHC 663 (Comm)
Outcomes
The court orders disclosure of the requested documents.
Disclosure pursuant to a court order does not contravene the Russia (Sanctions) (EU Exit) Regulations 2019. The court finds that providing documents in response to a court order for the purpose of litigation is not the provision of a financial service, brokering service, or insurance/reinsurance service, as defined in the Regulations.
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