Alterna Aircraft V.b. Limited, V. Spicejet Limited

At a glance

Parties

Alterna Aircraft V.B. Limited (Ireland), respondent on appeal, v. SpiceJet Limited (India), appellant

Case no.

Court of Appeals of Washington, Division One, No. 86016-0-I (published opinion)

Court

Court of Appeals of the State of Washington, Division One; opinion by Feldman, J.

Underlying award(s)

Summary judgment of the High Court of Justice, King's Bench Division, Business and Property Courts of England and Wales, Commercial Court, against SpiceJet for unpaid aircraft lease payments (a court judgment, not an arbitral award)

Forum and rules

Recognition proceeding under Washington's Uniform Foreign-Country Money Judgments Recognition Act, chapter 6.40A RCW

Treaty

None; contract claims under two aircraft leases

Sector

Aircraft leasing; aviation

Outcome

Affirmed. The trial court's denial of SpiceJet's motion to dismiss for lack of personal jurisdiction, and its recognition of the English judgment, stand.

Amount

The English judgment ordered SpiceJet to pay Alterna more than $11M under the lease agreements, plus litigation costs and interest.

The dispute

Alterna, an Irish aircraft company, leased two aircraft to SpiceJet, an Indian airline, in June 2019 for over $205,000 per month per aircraft. SpiceJet fell behind on payments, Alterna terminated the leases on 25 February 2020, and SpiceJet did not return the aircraft on the date agreed in later settlement agreements. The English High Court granted Alterna summary judgment for more than $11M plus costs and interest. Alterna then petitioned a Washington trial court to recognise the English judgment, alleging that SpiceJet owned interests in personal property in King County. SpiceJet did not invoke any statutory ground for non-recognition. It argued only that Alterna had to show a basis for personal jurisdiction over SpiceJet in Washington, such as property currently located there.

Key holdings

1. A judgment creditor does not need to show a basis for personal jurisdiction over the judgment debtor in Washington to obtain recognition of a foreign-country money judgment under the Uniform Act. The Court decided this as a matter of first impression in Washington. pp. 1–2, 15–16
2. The Uniform Act says a court "shall recognize" a foreign-country judgment unless a ground for non-recognition exists (RCW 6.40A.030). Those grounds include the foreign court's lack of personal jurisdiction, but not the recognising court's lack of jurisdiction or the absence of property in the State. SpiceJet raised none of the listed grounds. pp. 7–8
3. Under RCW 6.40A.900, the Court followed decisions from other Uniform Act states, notably Lenchyshyn and Abu Dhabi Commercial Bank (New York) and Haaksman (Texas). These hold that neither personal jurisdiction nor property in the forum is needed for recognition, as opposed to enforcement. pp. 9–11
4. Due process does not require such a showing. Under Shaffer v. Heitner, minimum contacts are needed in the action that establishes liability, not in a later action to recognise the judgment. Requiring them would let debtors defeat recognition by moving property to another state, an absurd result. pp. 11–13
5. SpiceJet's authorities do not apply. Enforcement cases (governed in Washington by chapter 6.36 RCW), such as Glencore Grain v. Shivnath Rai, require property in the forum only for enforcement. Cases on foreign arbitral awards fall under the New York Convention and chapter II of the Federal Arbitration Act, not the Uniform Act. pp. 13–15
6. The Court did not decide Alterna's alternative argument that its allegation of property in King County would satisfy any jurisdictional requirement. It noted that, under LG Electronics, the allegation must be accepted as true on a motion to dismiss. p. 16 n. 5

Procedural history

1. June 2019Alterna agrees to lease two aircraft to SpiceJet. It delivers them in July 2019.
2. 25 February 2020After written demands for payment, Alterna terminates the leases.
3. December 2021SpiceJet fails to return the aircraft on the date agreed in the 2020–2021 agreements.
4. The English High Court (Commercial Court) grants Alterna summary judgment for more than $11M plus costs and interest. The opinion does not give the date.
5. 2023Alterna petitions the Washington trial court for recognition. The trial court denies SpiceJet's CR 12(b)(2) motion to dismiss, grants summary judgment and enters final judgment recognising the English judgment.
6. 2 December 2024Court of Appeals, Division One, affirms in a published opinion.

Keywords

• recognition of foreign judgment
• Uniform Foreign-Country Money Judgments Recognition Act
• RCW 6.40A
• personal jurisdiction
• quasi in rem jurisdiction
• recognition versus enforcement
• Shaffer v. Heitner
• Lenchyshyn v. Pelko Electric
• Abu Dhabi Commercial Bank v. Saad Trading
• Glencore Grain v. Shivnath Rai
• aircraft leasing
• SpiceJet
• English Commercial Court
• summary judgment
• grounds for nonrecognition
• New York Convention
• Washington

Summary generated with AI from the published documents — refer to the award for the authoritative text.