## Facts

- Kuwait Airways was the legal owner of certain aircraft seized by Iraqi Airways during the Iraqi invasion of Kuwait in 1990.
- Iraqi Airways took physical control of the aircraft, incorporated them into its fleet, and used them for commercial purposes.
- Kuwait Airways sought legal redress for the seizure and continued use of its aircraft.
- The dispute arose within the context of armed conflict, implicating issues of both domestic and international law.

## Issues

1. Whether Kuwait Airways had a right to possession of the aircraft at the relevant time.
2. Whether Iraqi Airways dealt with the aircraft in a manner inconsistent with Kuwait Airways’ right to possession.
3. Whether Iraqi Airways’ actions constituted a denial of Kuwait Airways’ title to the aircraft.
4. Whether the principles of conversion as defined in English law applied to these circumstances, including where a foreign state and international issues were involved.

## Decision

- The House of Lords held that Kuwait Airways had a clear legal right to possession of the aircraft at the relevant time.
- Iraqi Airways’ actions in seizing, using, and incorporating the aircraft into its own operations constituted dealing inconsistent with Kuwait Airways’ rights.
- The continued use and retention of the aircraft by Iraqi Airways amounted to an implicit denial of Kuwait Airways’ title.
- The court affirmed that conversion is a strict liability tort under English law, so the defendant’s intent or knowledge is irrelevant to establishing liability.

## Legal Principles

- The test for conversion requires: (1) the claimant’s right to possession, (2) the defendant’s dealing with the goods in a manner inconsistent with that right, and (3) a denial of the claimant’s title, explicit or implicit.
- Physical possession is not required for legal entitlement; a superior possessory right is sufficient.
- Conversion is a strict liability tort—liability does not depend on the defendant’s intent or knowledge.
- Domestic courts may adjudicate disputes involving foreign states if within their jurisdiction, even where international law is implicated.
- The judgment reinforces protection against wrongful interference with goods and highlights the objective standard for inconsistent dealing.

## Conclusion

The House of Lords in Kuwait Airways v Iraqi Airways clarified the strict liability framework for the tort of conversion, holding Iraqi Airways liable for wrongful interference with Kuwait Airways’ aircraft and establishing a three-part test centered on right to possession, inconsistent dealing, and denial of title, with significant implications for property law and the adjudication of international disputes involving state actors.


Kuwait Airways Corp v Iraqi Airways Co (Nos 4 and 5) [2002] 2 AC 883