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EU261: pilot and crew illness NOT ‘extraordinary circumstance’ says Supreme Court

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British Airways has lost a legal battle regarding EU261-equivalent compensation payments after six years of to-ing and fro-ing.

The final judgement, which has been issued by the Supreme Court, sets a new UK precedent when deciding whether compensation is liable in the case of staff illness during flight disruptions.

A quick refresher, for anyone who is unfamiliar with the law:

EU261: pilot and crew illness NOT 'extraordinary circumstance'

EU261 is a regulation in EU law that establishes passenger rights and airline obligations during periods of flight disruption, including denied boarding, cancellation and delay.

The regulation was absorbed into UK law following Brexit and remains applicable. It sets fixed payment amounts in instances of delay as well as your rights as a passenger to a refund or rebooking, should things go wrong.

In particular, it outlines the levels of compensation that are payable when a flight is delayed. The full amount depends on the length of your flight and your delay, but payouts are due when a flight of less than 1,500km is delayed by 2+ hours.

Lipton v BA Cityflyer Ltd

In this case, Mr and Mrs Lipton were returning to London from a trip to Milan in January 2018. Unfortunately, their flight was cancelled because their pilot was unexpectedly taken ill and they were rebooked onto another flight which arrived 2 hours and 36 minutes after their originally scheduled arrival.

As Milan to London is less than 1,500km, the Liptons claimed €250 compensation each as mandated by EU261.

BA Cityflyer denied the claim on the basis that the pilot’s illness constituted an “extraordinary circumstance” outside of the airline’s control and not eligible for compensation under EU261, which carves out an exemption for such events.

The Liptons escalated the case, first to Portsmouth County Court and on appeal to Winchester Country Court and the Court of Appeal.

It was then referred to the Supreme Court for a final judgement. Crucially, the Supreme Court judges have now sided with the Liptons, judging that staff illness does NOT constitute an “extraordinary circumstance” and unanimously dismissing the airline’s appeal.

Here is the press summary of the ruling, or you can read the full 93-page judgement itself:

“The Supreme Court unanimously holds that the pilot’s non-attendance due to illness was an inherent part of Cityflyer’s activity as an air carrier and cannot be categorised as extraordinary. That phrase must be given its usual meaning, which denotes something out of the ordinary. Staff illness is commonplace for any business.

Just as the wear and tear of an aircraft’s physical components is considered an inherent part of an air carrier’s activity, so too is managing illness of staff. An event can be external to a carrier but still inherent to its operations.

It is irrelevant whether staff fall ill whilst they are off-duty; their attendance or non-attendance for work is an inherent part of the carrier’s operating system. It is significant that pilots are subject to rules outside their working hours, such as a ban on drinking in the lead-up to a flight.”

Arguably this is a statement of the obvious and should not have required six years of legal cases or indeed a 93-page judgement to confirm ….

What impact will this have?

British Airways said “We are disappointed with this decision and respect the judgment of the Court.”

However, this ruling has implications far beyond British Airways, the Liptons or this specific case.

Going forward, this judgement would suggest that no airline will be able to claim that staff illness is an extraordinary circumstance in order to avoid paying out the compensation as set out in the UK equivalent of EU261.

It should, hopefully, make any claims due to staff illness clearer and reduce the amount of back-and-forth between passengers and airlines.

Remember that EU261 and its UK equivalent only apply to UK/EU-based airlines as well as all airlines when departing the UK/EU.

It does not apply to a non-UK/EU airline arriving in the UK/EU from a non UK/EU country.

This case, however, only applies to claims made from flights arriving into/leaving the UK because those claims are now heard under the new UK equivalent of EU261. A delay flying in/out of mainland Europe would be claimed under EU261 which will not look at UK court precedent.

You can read the full regulation, as copied into UK law, on the GOV.UK website here. It is well worth acquainting yourself with should you ever find yourself with the short end of the stick.

Comments (138)

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  • meta says:

    There are so many rulings pre and post-Brexit on this from ECJ that it does apply to EU airlines flying into UK. (and non-EU airlines flying from EU to UK). Even sudden death of the pilot or crew does not constitute extraordinary circumstance based on recent ECJ rulings.

    BA was chancing it and continued with the case post-Brexit in hopes that UK Supreme Court will rule in their favour. It backfired. Total waste of time and money.

    • Dubious says:

      Reading the ruling, it appears BA won the case on the first hearing in Portsmouth.

      It was the Lipton’s that took it to appeal, and that’s when it got messy. I still don’t understand how/who (perhaps the UK CAA?) took it to the Supreme Court after the appeals court (in Winchester) rejected the appeal.

      • meta says:

        Some judges in the UK rule on a whim without any grounding in law or precedents…

      • Kaconym says:

        BA Cityflyer did, they appealed to the Supreme Court after the appeal was rejected.

  • Dubious says:

    This is an interesting development and there must be something more behind the story, because I don’t know how someone would have the balls and drive to take a case for €500 to appeal and eventually all the way up to the Supreme Court…

    I initially assumed it was BA’s lawyers that appealed an judgement but in fact it was the Lipton’s who appealed.

    It seems a lot of the legal debate focused on which law to follow- the EU regulations (EC Regulation 261/2004) or the post-Brexit UK equivalent – the former were in effect during the initial hearing, but the latter in effect during the appeal.

    • meta says:

      This was very likely funded by the law firm on principle hence why it was pursued.

      • David says:

        And a very happy bank balance principle to boot.

      • Michael S says:

        Why would a law firm pursue this for 6 years? Even if they get a significant chunk of compensation, it won’t even cover an hourly fee of a junior associate?

        • Rhys says:

          British Airways took it to the Supreme Court, likely because they wanted some clarity on how it would be interpreted in U.K. law. Now they know.

          • Rui N. says:

            This is actually a very common trend with EU261. A lot of judgements came from airlines forcing the case up to the CJEU, instead of paying up on the national courts. They force it, lose and it becomes precendent. One would have thought they had learned the lesson by now…

          • Rob says:

            Indeed. If Jet2 had paid Mr Huzar and not taken it to court over mechanical failure the industry would have saved a fortune …..

          • meta says:

            If you look at all the ECJ rulings, a lot of them rest on nuances. So crew illness has myriad rullings for very similar circumstances because each time airlines want to wreck the legislation and love wasting shareholders money on such stupidities.

            Law firms specialising in UK/EU261 tend to bankroll it because it doesn’t cost them much to put a paralegal on £30-35k a year on it until Supreme Court. They may even get awarded the costs by the other side. And it’s in their interest so they can continue getting 30% cut from their clients. Most people are perfectly happy to let someone else deal with their claims.

    • Richie says:

      @Rob Yes other airlines are probably really p’ed off with Jet2. BTW Bott & Co. assisted Mr Huzar.

    • Paul says:

      No, the Lipton lost in the lower courts and appealed to the court of appeal. The court of appeal agreed with the Lipton and the hubris, bullying and commercial greed took over with BA pursuing it to the Supreme Court. So instead of settling a bill for £440 they now face costs running to hundreds of thousands and backdated claims. It could cost them millions.

      • Dubious says:

        Thanks. It seems there is more to appealing a decisions that I thought.
        So the initial appeal to Winchester County Court was dismissed, but somehow the ‘Court of Appeal’ got involved and the outcome agreed with the Liptons….
        …which CityFlyer then appealed some more??

  • TimM says:

    “Arguably this is a statement of the obvious and should not have required six years of legal cases or indeed a 93-page judgement to confirm”

    Agreed. If airlines do not wish to be responsible they should challenge the existence of UK261 not its implementation.

    EU/UK261 does appear very clunky in that the compensation amounts are fixed cash amounts, unrelated to the fare paid or the alternative fare paid. I would have thought the usual duty of care principles plus compensation for any material damage, e.g. a lost day’s pay, would have been the way to go.

    • JDB says:

      @TimM – a passenger is already entitled per Article 12 to claim damages (eg as you suggest a day’s lost pay) beyond the liquidated compensation provided for in Article 7.

    • BA Flyer IHG Stayer says:

      The system was designed to be simple. And until the courts started messing about with it it was.

      Compensation for a delay was never part of the original regulation for example.

      Any sort of compensation based on fare paid or lost wages would make it far more complicated and costly to administer. The airlines may not like the fixed amounts but they’d balk at any other system. Would you really want to be revealing your salary to an airline to justify compensation?

      And you’re basically saying that a retired person on a pension should get nothing because they haven’t lost any pay? A pensioners time is just as valuable to them as it is to some super duper executive.

      • memesweeper says:

        … and conversely, if a ticket is cheap or ‘free’ on miles, does not mean I am not inconvenienced when delayed in reaching my destination. The regulations are sensible in scope and fair to everyone.

        No-one should support linking compensation to ticket prices, and in many cases ticket prices are manipulated (subsidised LCC tickets), obscured (eg with YQ) or unknown (eg holiday bookings).

        • meta says:

          It got messy because airlines started to claim extraordinary circumstances and denying claims for obviously their inability to conduct business properly. It is very simple actually because airlines should pay up automatically without passengers having to write claims. There are some smaller airlines that send you a link automatically to provide your bank details and pay compensation straight away.

      • Richie says:

        The Sturgeon Judgement passenger delays by AF and Condor were at least 22 hours. Perhaps AF and Condor could’ve avoided treating passengers so badly.

      • Max says:

        Compensation tied to fares would at least mean that inflation would be adequately compensated for.
        The current compensation sums are still the original from 2004, ignoring 20 years of inflation!
        And yet the airlines still do think the amounts are too high…

    • NFH says:

      I don’t understand the argument that compensation ought to be based on the fare paid. The inconvenience suffered does not vary according to the fare paid, so nor should the compensation. It’s like saying that if your £300 washing machine catches fire and causes £30,000 worth of damage to your home, then the amount you paid for the washing machine should be taken into account. The argument holds no water.

  • Geoff says:

    Any company will have a % of staff off sick on any given day. The management need to find a way of navigating this. That’s their job.

    Of course it’s not “extraordinary”

    • Will says:

      BA will try any excuse to avoid paying. It’s about time that these rules are properly enforced and the air traffic control strikes are also compensated for (perhaps not by the airline but compensated for nevertheless)

    • Charles Martel says:

      But is it reasonable to have a third pilot available for every flight? The court obviously believed so but it doesn’t sound particularly practical to me.

      • TGK says:

        That wasn’t the point of law – it may be impractical, or even impossible, but it doesn’t make the circumstances that led to requiring a replacement pilot “extraordinary”.

      • Rhys says:

        I don’t think anyone expects BA to have spare crew at every outstation. But that doesn’t mean people shouldn’t be compensated for delays.

      • AJA says:

        No, it’s not reasonable for the airline but that’s not the point of the regulations. It’s all about consumer protection and as a result is far more weighted in favour of consumers. The EU acted to introduce EC261 because originally airlines were doing whatever they liked and not treating customers fairly.

        The preamble to EC261/2004 explains that the EC decided to strengthen passengers rights as the original regulations Council Regulation (EEC) No 295/91 of 4 February 1991 “establishing common rules for a denied boarding compensation system in scheduled air transport (4) created basic protection for passengers, the number of passengers denied boarding against their will remains too high, as does that affected by cancellations without prior warning and that affected by long delays.”

        The point of this ruling is that any large business will have a percentage of staff off sick at any one time. They need to plan accordingly and have contingencies in place to deal with it. Airlines just have it tougher because of the intricacies of the operation. This ruling just clarifies that staff sickness at an outstation doesn’t give the airline a getout.

        I welcome it as a consumer.

      • Geoff says:

        Not my problem though is it? I’ve paid for a service and I’m not getting it.

        There’s nothing “extraordinary” about someone calling in sick

      • Richie says:

        BTW The Unions representing Ansett Australia pilots had additional short haul pilot requirements. So it’s not unheard of.

      • Paul says:

        No one including the SC wants this. They simply reinforced the the fact that it’s not extraordinary

  • Michael S says:

    Not all heroes wear caps, kudos to Mr and Mrs Lipton for fighting the good fight on behalf of all of us, just to get 250 eur. Presumably they spent way more than this is legal fees? Or was the case financed by a consumer rights group? Really keen to hear details on this

    • IPB says:

      Completely altruistic, I’m sure. Never mind the potential impact on fares longer term, especially for destinations with lower frequency. If an airline has to safeguard against illness by carrying more crew than they would ordinarily need, who is going to pay for that do we suppose?

      • AJA says:

        I don’t think airlines will do any such thing as carrying extra crew. The reality is that all this does is clarify that airlines must pay compensation when flights are cancelled due to staff sickness, wherever that happens.

        Airlines already deal with getting planes back to base. They just need to treat the customer fairly when staff sickness happens.

        • IPB says:

          You’re probably right, but fares are likely to go up irrespective. Airlines will price in either the cost of additional crew (unlikely, as you say) or they will more vigorously price in the potential cost of EU261.

          • Bagoly says:

            So the effect is to apply a sort of compulsory insurance premium on all flights to cover those people inconvenienced by staff illness.
            Not unreasonable.

  • BJ says:

    A pity the ‘authorities’ don’t devote 6 years of ‘effort’ into enforcing industry compliance with the regulations, larticularly amongst those airlines that think the regulations don’t apply to them.

  • PassengeronBA says:

    Rail has to pay “delay repay” regardless of cause with no exclusions. Airlines still get away with many delays even when they could have mitigated them. AirlTraffic Control delays which are a service the airlines pay for and in some cases they own shares in the provider.

    Airlines are also notoriously poor at telling passengers their rights. Many rail companies now provide automated compensation where you don’t need to claim – the money is automatically refunded. Airlines should be required to do the same!

    There is much to do in this space!

  • Tim Smith says:

    Exceptional circumstance is too wide open for misinterpretation and misuse. What about say not being able to land at Madeira due to wind? This is a frequent occurrence so surely can’t be treated as exceptional and more a cost/risk of operating to such a place but that’s how easyJet defined it for me.

    • Rui N. says:

      It’s due to weather so it is exceptional. Being exceptional has nothing to do with how often it happens.

    • JDB says:

      @Tim Smith – you have completely missed the point. An aircraft being unable to land at Funchal airport owing to weather conditions is obviously outwith the airline’s control; that’s the test. I can’t believe you put easyJet to the trouble of having to consider such a meritless/invalid claim.

    • AJA says:

      Even if the wind conditions are a regular occurrence surely you can see that it happening is not within an airline’s control.?

      What is under the airlines control is how they deal with it. If that means diverting to another airport and trying again later that seems reasonable.

      You as a passenger also know that wind issues occur regularly at Madeira so if you choose to fly there you know the risk might mean the flight is diverted. You still choose to fly. You could choose another destination entirely.

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