On February 6, 2017, the Ninth Arbitration Court of Appeal has considered the appeal of the Russian insurance company - AB KIAP’s principal – against decision of the Moscow Arbitration Court, according to which claim of a number of foreign reinsurers on the return of unjust enrichment at the total amount of about US $ 4 million were satisfied. Upon review of the appeal, decision of the first instance court revoked, and the claim to the AB KIAP’s principal was denied in full.
This case is one of the three court cases, related to the crash of the Russian airliner Sukhoi SuperJet-100 in Indonesia in 2012, resulting in the death of 41 passengers, including the crew. First two cases with claims, totally estimated more than 36 million US, were also successful to AB KIAP’s principal.
Earlier, Moscow District Arbitration Court revoked the decisions of first instance and appeal courts, and sent this case to retrial.
After retrial at the first instance court, it was decided by Moscow Arbitration Court to agree with reasons of the reinsurers and satisfy their claim in full again. Challenging this decision, AB KIAP’s principal made the appeal, according to which Russian law is applicable under the reinsurance contract, so the flight should be considered as test flight, which entails the recognition of the insured event for reinsurance contract. Further, in recognition this event as insured, any reimbursement paid by reinsurers under the reinsurance contract, may not be considered as unjust enrichment. The Court of Appeal agreed with this position, revoked the decision of the first instance and denied the claim of the applicants.
Partner, Head of KIAP’s Insurance practice Dmitry Shnaydman acted for AB KIAP’s principal at the Ninth Arbitration Court of Appeal.