Case Nos: CL-2022-000294; CL-2022-000557; - [2025] EWHC 2529 (Comm)

Impact of Settlements

A further point of clarification of the order for costs in favour of AerCap relates to the position of insurers who settled with AerCap. AerCap with Swiss Re on 12 November 2024, and settled with HDI by a confidential settlement dated 22 November 2024. Each of those settlements provided, inter alia, that the settling parties released each other from any claims for costs. As a result of those settlements, AerCap does not seek costs against HDI or Swiss Re, or vice versa. But I also consider it appropriate, for the reasons developed by Swiss Re, that the costs recoverable by AerCap from War Risks Insurers should be reduced by Swiss Re’s and HDI’s proportion of the costs up to the date of the respective settlements. Were that not the order made, it would be likely that there would be satellite litigation, for the other War Risks Insurers, if made responsible for AerCap’s costs including Swiss Re’s and HDI’s shares, would be likely to claim contribution from those insurers. No injustice is caused to AerCap, in my view, because it will have gained a financial advantage by agreeing, as against HDI and Swiss Re, to bear their shares of the costs. That will have been a part of the settlements reached, and will doubtless have been priced into the settlements as a whole.