23 02 2016

Capital Insurance OAO in the Supreme Court of Russia

Judicial Chamber for Economic Disputes of the Supreme Court of the Russian Federation revoked court rulings by inferior courts that had granted judgement on previous claims in favor of a number of foreign reinsurers and ordered the KIAP’s Client, i.e. Capital Insurance OAO, Russia, to repay over 4 million U.S. dollars provided under a protection and indemnity reinsurance agreement related to operation of experimental aircraft of JSC Sukhoi Civil Aircraft.


The essence of the claim is the right of the reinsurers to demand repayment of the money provided under the reinsurance agreement to establish a fund to meet claims of the parties subject to reimbursement in connection with the death of 41 people resulting from a plane crash of Sukhoi SuperJet-100 in Indonesia on May 9, 2012. While Capital Insurance OAO met the claim at first and contributed to the fund, later the reinsurers demanded repayment of the cash provided, as the extent of reinsurance was allegedly inadequate to the nature of the flight resulting in the crash. The Moscow Arbitration Court recognized the reinsurers’ claims as justified, while the provided cash was found to constitute unreasonable gains of Capital Insurance OAO. The Ninth Arbitration Appeal Court and the Moscow District Arbitration Court did not make any amendments to the ruling. To object the rulings, Capital Insurance OAO lodged a cassation appeal with the Judicial Chamber for Economic Disputes of the Supreme Court of Russian Federation. Their main arguments referred to gross violations of substantive law provisions committed by the inferior courts. After hearing the appeal, the Judicial Chamber for Economic Disputes of the Supreme Court of Russian Federation decided to revoke the rulings to exact the money from Capital Insurance OAO and ordered to transfer the case to a court of first instance, the Moscow Arbitration Court. It is to be recalled that appeal courts of first and second instance affirmed the claims by the KIAP’s Client during another dispute between Capital Insurance OAO and several foreign reinsurers, which related to the crash in Indonesia and amounted to over 32 million U.S. dollars (case No. ?75-4871/2013). Dmitry Shnaidman of KIAP acted for Capital Insurance OAO in the Supreme Court. Involved fees earner: Dmitry Shnaidman - KIAP;

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