On March 14, 2017, the Ninth Arbitration Court of Appeal has considered the appeal of a number of foreign reinsurers against decision of the Moscow Arbitration Court, according to which claim to the Russian insurance company - AB KIAP’s principal - on the return of unjust enrichment at the total amount of about was denied in full. Upon review of the appeal, decision of the first instance was confirmed by Court of Appeal and came into force.
Earlier this case was subject of consideration of the Supreme Court of the Russian Federation, who revoked the decisions which satisfied the claim, and sent the case on new consideration to Moscow Arbitration Court. According to position of the Supreme Court, the most significant circumstance was to determine the type of aircraft flight before accident. Keeping this in mind, first instance court estimated the evidences and reasons of parties about the type of aircraft flight, so to decide if this flight was insured event for reinsurance contract.
Denying the claim, first instance court agreed with AB KIAP position that accident took place during the test flight of the aircraft, so this event was insured under reinsurance contract. In that case payment made by reinsurers cannot be determined as unjust enrichment, so the claim isn’t reasonable. Court of Appeal also agreed with this position and confirmed the decision of the first instance court about denying the claim.
Partner, Head of KIAP’s Insurance practice Dmitry Shnaydman acted for AB KIAP’s principal at the Ninth Arbitration Court of Appeal.