TORTClaimant's aircraft retained by defendant following Iraqi government resolution - English court entitled to decline to recognise resolution - defendant liable for all losses flowing naturally and directly from failure to return aircraftKuwait Airways Corpn v Iraqi Airways Co (Nos.

4 & 5): CA (Henry, Brooke, Rix LJJ):10 November 2000 When Iraq invaded Kuwait in 1990, 15 of the claimant's aircraft at Kuwait airport were flown to Iraq on Iraqi government orders.

The Iraqi government passed a resolution purporting to dissolve the claimant and transfer its assets to the defendant.

Six of the aircraft were transferred to Iran and impounded before being returned to the claimant.

Four aircraft were destroyed.

The claimant sought delivery up of the 10 aircraft and damages resulting from their conversion.

Mance J [1999] CLC 31 gave judgment for the claimant on liability.

Aikens J, hearing issues of causation and damages, held among other things, that, applying a 'but for' test as a matter of English law, the claimant was not entitled to recover loss flowing naturally and directly from the defendant's wrongful usurpation and conversion of the six impounded aircraft (see [2000] Gazette, 8 June, 44).

The defendant appealed from Mance J.

The claimant appealed from Aikens J.Geoffrey Vos QC, Christopher Greenwood QC, Joe Smouha and Sam Wordsworth (instructed by Howard Kennedy) for the claimants.

David Donaldson QC and Stephen Nathan QC (instructed by Landau & Scanlan) for the defendants.Held, dismissing the defendant's appeal and allowing in part the claimant's appeal, that the court was entitled to refuse to recognise a resolution which was in breach of international law; that conversion was a tort of strict liability, and once the tortfeasor interfered with the owner's right of dominion over the goods, he was prima facie liable to pay the owner their market value; that the question what would have happened to the aircraft 'but for' the conversion was not the appropriate test; and that the claimant was prima facie entitled to recover all losses flowing naturally and directly from the defendant's act of conversion, provided they were not too remote.