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ARTICLE · 10 JANUARY 2011

Case Law Update: "Kuwait Airways Corp. v. Iraq"

WeirFoulds LLP
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At the time of Iraq's invasion of Kuwait in 1990 and subsequent occupation, the Iraqi government ordered its national airline, the Iraqi Airways Company ("IAC"), to appropriate the aircraft, equipment and parts inventory of the Kuwait Airways Corporation ("KAC").

CanadaTransport
Scott McGrath
Scott McGrath
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2010 SCC 40, Released 21 October 2010

Recognition and Enforcement of Foreign Judgments – Sovereign Immunity

At the time of Iraq's invasion of Kuwait in 1990 and subsequent occupation, the Iraqi government ordered its national airline, the Iraqi Airways Company ("IAC"), to appropriate the aircraft, equipment and parts inventory of the Kuwait Airways Corporation ("KAC"). KAC brought an action against IAC in the U.K. for damages as a result of the appropriation of its property. After lengthy proceedings, the U.K. courts awarded judgment against IAC for over $1 billion Canadian. KAC then had the Republic of Iraq joined as a second defendant in order to claim costs of the actions in the U.K. The U.K. High Court of Justice made a further order requiring Iraq to pay $84 million Canadian in costs.

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