Scott v The Copenhagen Reinsurance Company
(UK) Ltd: the Kuwait test action

Court of Appeal [2003] EWCA Civ 688
May 2003

The proceedings arose out of the Iraqi invasion and capture of Kuwait International Airport in 1990. At first instance Langley J held that the loss of a BA aircraft, destroyed at Kuwait International Airport by coalition bombing in January 1991, did not arise out of the same event which caused the loss of 15 Kuwaiti aircraft seized by Iraqi forces, namely the invasion of Kuwait and seizure of the airport in August 1990. The reinsurance contracts contained aggregation provisions referring to "each and every loss or series of losses arising from one event.

The Court of Appeal confirmed Langley J's view that, because there was one general state of affairs, the invasion of Kuwait, it did not follow that there was only one event. The "unities" of time, manner, place, cause and intention, now the standard test for whether an aggregating "event" has occurred, were not the same for the loss of the Kuwaiti fleet as for the BA aircraft.