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Thai Airways International Public Co Ltd v KI Holdings Co Ltd (formerly Koito Industries Ltd)

On 11 May 2015, Leggatt J handed down judgment in the long-running Commercial Court litigation in Thai Airways v KI Holdings & Anor [2015] EWHC 1250 (Comm), awarding Thai Airways over US$100 million in damages.  Its claim arose out of KIH’s failure to deliver seats for a number of aircraft, after it came to light that KIH had falsified results of safety tests and other data so as to make it appear that seats which it had manufactured complied with regulatory requirements.  Thai Airways’ principal claim was for the cost of leasing replacement aircraft in mitigation, which the judge held it was entitled to recover.

The judge also awarded Thai Airways damages in relation to other heads of loss.  Many of the claims raised issues of whether benefits were received by the claimant after breach and if so whether they had to be brought into account.  Leggatt J clarified the principles applicable to mitigation, and considered in what circumstances credit had to be given for benefits received by the claimant.

Patricia Edwards appeared as counsel for the claimant.