Saturday, April 12, 2008

Split Noted: Is Prejudgment Interest Available Under the Warsaw Convention?

Per Sompo Japan Ins., Inc. v. Nippon Cargo Airlines Co., 2008 WL 1021939, *25-*26 (7th Cir. Apr. 11, 2008)

Sompo Insurance brought suit against Nippon Cargo Airlines (NCA) seeking compensation for the damage to computer equipment caused during transport. After a bench trial, the district judge entered judgment for Sompo but denied prejudgment interest.

In the course of his opinion, Judge Ripple provides an extended and informative history of the various international agreements governing air carrier liability. The unanimous panel affirms the district court’s holding, but notes that the circuits have split on whether prejudgment interest is available under the Warsaw Convention; the CAs 2,7 (no) differ from the CAs 5,9 (yes). Certiorari is highly unlikely as the Warsaw Convention was superceded in 2005, after the accident at issue here, by the Montreal Convention.

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