Kuwait Airways Corporation v Iraqi Airways Company

Permission to appeal may properly be granted where an abandonment issue should be considered by the full appellate court and may, if successful, give rise to a limitation issue. The involvement of substantial sums supported that course. Granting permission does not indicate optimism about the appellant’s prospects.

Iraqi Airways Company sought permission to appeal from a decision of Langley J in the Commercial Court. The proposed appeal raised an abandonment point which, if successful, could lead to a limitation issue. The Court of Appeal considered that the whole matter should be heard by the full court, particularly because substantial sums were involved. The immediate issue was whether permission should be granted and the case relisted for substantive consideration.

Lord Justice Waller, giving the judgment of the court after Lord Justice Schiemann had indicated the appropriate course, granted permission to appeal.

1. The proposed appeal raised an abandonment issue that warranted consideration by the full Court of Appeal.
2. If the abandonment point succeeded, it would give rise to a limitation issue. It was therefore appropriate for the whole matter to proceed to the Court of Appeal rather than for the points to be separated.
3. The substantial sums involved in this litigation supported the decision to grant permission.
4. The grant of permission was not intended to encourage optimism about the appellant’s prospects of success.

Costs were reserved. The case was directed to be relisted, if possible between February and April, before three judges, including one with commercial experience, with half a day allowed for pre-reading and one day for the hearing.

1. Court of Appeal (Civil Division): Permission to appeal was granted on 4 October 2001 under [2001] EWCA Civ 1496. Costs were reserved and the case was directed to be relisted before three judges.
2. High Court of Justice, Queen’s Bench Division, Commercial Court: The application arose from a decision of Langley J. No citation for that decision is stated in the judgment.