DLA Piper secures major win in all-risk aviation exposures case

DLA Piper secured a precedent-setting win for all-risk aviation exposures, in Zephyrus Aviation Capital, LLC, et al v Berkshire Hathaway International Insurance Limited, obtaining the first appellate court ruling anywhere in the world in the multi-billion dollar global claims complex surrounding commercial aircraft remaining in Russia following the outbreak of hostilities and imposition of sanctions.

The Florida appellate court affirmed a ruling that plaintiffs alleging their leased commercial aircraft had been stranded in Russia following the outbreak of hostilities were not entitled to coverage because they did not incur “physical loss or damage” as a matter of law.

The defendants’ motion to dismiss and defense of appeal results in their dismissal from the case in which Plaintiffs sought US$20 million in coverage. DLA Piper represented 11 of the insurer defendants at both the trial and appellate level.

While the trial court’s ruling and appellate court’s focus at oral argument were on existing legal standards for “physical loss,” this is the first appellate court ruling by any court in the world on the massive Russia/Ukraine aviation claims complex. Both the substance and the procedural posture of the ruling give it the potential to alter the landscape of many of the 30-plus Russian aviation insurance lawsuits pending around the world.

The DLA Piper team included Aidan M. McCormack (New York) and Trumon Phillips (Miami) who argued the motion to dismiss and defense of appeal.