Supreme Court Grounds Airline's 'Extraordinary' Excuse.

On 10 July 2024, the UK Supreme Court delivered its eagerly awaited judgment in Lipton & Another v BA City flyer Ltd [2024] UKSC 24.

The case centered on the interpretation of ‘extraordinary circumstances’ under EC Regulation 261/2004, a piece of retained EU law that requires airlines to compensate passengers for cancelled and delayed flights. The question at hand was whether a pilot falling ill while off-duty could be considered an “extraordinary circumstance” that could not have been avoided even with all reasonable measures.

What is the case about?

On 30 January 2018, Mr. and Mrs. Lipton were scheduled to fly from Milan to London City Airport with BA City flyer Ltd. The flight was set to depart Milan at 17:05 and arrive in London at 18:05. At 16:05, the captain fell ill, and with no available replacement, the flight was canceled. The Liptons were rebooked on a different flight, however they arrived in London 2 hours and 36 minutes later. They sought compensation under the regulation.

The Court’s Decision.

The airline argued that because the captain fell ill while off-duty, it was an unforeseen external event and thus an exceptional circumstance under Article 5 of the Regulation. The District Judge initially agreed, dismissing the claim. However, the Court of Appeal disagreed, determining that a pilot’s illness, even when off-duty, was not an extraordinary circumstance, citing six reasons for this conclusion.

The UK Supreme Court upheld the Court of Appeal’s decision, affirming that the pilot’s off-duty illness did not constitute an extraordinary circumstance. The Court agreed with Coulson LJ and the six reasons given. The judgment concluded that such illness was an inherent risk of running an airline and not extraordinary. Therefore, the airline had failed to prove an exceptional circumstance.

The appeal was dismissed in full. This decision will serve as important guidance for future claims related to delayed and cancelled flights and is expected to lead to more successful claims for passengers affected by such disruptions.

Likely Consequences.

The ruling could significantly impact how "extraordinary circumstances" is interpreted under Regulation 261 and its UK successor. Thus shaping future interpretations by the UK courts in regards to the retained EU law. 

The judgment deals a blow to BA and will catch the attention of other airlines that have denied compensation under similar conditions. The Supreme Court highlighted that “although the sum at stake is small, the decision has the potential to affect tens of thousands of claims annually.”