The High Court is this week hearing the conclusion of a long-running dispute between Iraq Airways and Kuwait Airways begun under Saddam Hussein's regime when Iraq Airways was represented by former London firm Landau Scanlan - since replaced by Kendall Freeman.

The case is a continuation of an action heard before the House of Lords in the early 1990s.

In May 2002, the Lords upheld a Court of Appeal ruling that the incorporation of Kuwait Airways Corporation's fleet of aircraft into the Iraqi Airways fleet during the Gulf War in 1990 was 'in flagrant violation of the rules of international law'.

No financial resolution has since been reached and the case was in abeyance during the recent conflict between the US-led coalition and Saddam Hussein's regime.

Following the war last year, City firm Kendall Freeman was appointed to act for Iraqi Airways, with the clearance of the Coalition Provisional Authority, and replaced London firm Landau Scanlan, which had acted for many Iraqi interests during Saddam Hussein's tenure.

Landau Scanlan subsequently merged with London firm Ross & Craig.

Colin Joseph, the partner at Kendall Freeman, said: 'We were instructed since the downfall of the old regime last September.

The current action revolves around spare aeroplane parts and is for damages in the region of $85 million and $185 million (47 million and 102 million).'

Joseph Kosky, a former Landau Scanlan partner now with Ross & Craig, said: 'We acted for various Iraqi entities and state-owned businesses - including the foreign ministry - before Saddam Hussein became a pariah.

We have many contacts in Iraq and hope when peace returns, we will be working with Iraq again.'

Jeremy Fleming