The dispute arose in connection with the refusal by thirty foreign reinsurers, some of them members of Lloyd's, to pay out a reinsurance claim from the Russian insurance company Capital Insurance for the loss of the aircraft.
The total amount of reinsurance money sought originally was over 32 mln US dollars; some time into the litigation, however, a number of reinsurers paid up as required under their contracts, and the amount of the claim was nearly halved by the plaintiff.
Apart from issues of law, the trial was dragged out by complicated notification to the multitude of defendants in the case domiciled in various foreign jurisdictions (Great Britain, India, Nepal, Bermuda etc.), rejection of the jurisdiction of the Russian court by counsel for the defendants, as well as by the complexity of applicable law issues.
Eventually, after nearly two years of litigation, the arbitrazh court of Khanty-Mansi Autonomous Okrug – Yugra decided to grant the Principal's claim in full.
Capital Insurance's case was argued by the Firm's partners Konstantin Astafiev and Ilya Ischuk, assisted by associate Georgy Karaoglanov.