The Court of Appeal has ruled in favour of a strike-out application by British Airways on its mammoth legal battle over air cargo cartel claims.

The application sought to remove economic tort claims from the case against BA, which the claimants’ lawyers Hausfeld previously said represents “more than half of the claim value (over £500m)”.

It is understood Wednesday’s (14 October) ruling could significantly reduce the scope of the claim, which was previously estimated at £1bn.

The CoA decision also overturns a previous ruling by Mr Justice Peter Smith, who recused himself from the case in July following an altercation with BA when his luggage was misplaced.

The CoA ruled BA did not have the intention to injure the claimants as it does not accept that “complexities about potential loss affect the question of intent”.

The judgment read: “It seems to us that if these economic tort claims could be advanced, it would have two results, both of which seem to us to be undesirable. Second, it would in reality dilute the concept of intention and bring it unacceptably and perilously close to a concept of foreseeability.”

Agreeing with 20 Essex Street’s Iain Milligan QC, who appeared for the claimants, the CoA said the fact that removing the economic tort from the claim could remove 60 per cent of the value of the claim did not necessarily mean that it would lead to a saving of 60 per cent of the costs.

The current case Emerald Supplies Ltd & Others v British Airways plc continues before Mrs Justice Rose. The dispute has been brought by three groups made up of several hundred claimants, who are represented in court by flower importers Emerald Supplies, against lead defendant BA and 23 other airlines.

Lawyers from all sides were in a case management conference on Wednesday (14 October) following a further application to strike out the Bao Xhiang claims.

The Lawyer revealed in July Smith J is facing an investigation by the Judicial Conduct Investigations Office in connection with his recusal from the case.

News of the investigation emerged after a judgment by Smith J in which he revealed he had escalated his complaint about lost luggage from BA’s customer services team to its chief executive Keith Williams and the lawyers acting for BA on the cartel case.

The legal line-up:

For the claimants, Emerald Supplies Ltd & Ors

20 Essex Street’s Iain Milligan QC, Monckton Chambers’ Paul Harris QC, Ben Rayment and Anneliese Blackwood, instructed by Hausfeld & Co partner Anthony Maton

For the defendants, British Airways

Monckton Chambers’ Jon Turner QC, One Essex Court’s Conall Patton, instructed by Slaughter and May litigation partners Richard Swallow and Jonathan Clark and associates Holly Ware, Cristin MacCann and Emily Turnbull, and competition partner Bertrand Louveaux and associate Emma Griffiths

For the third and fourth parties, Air Canada & others

Monckton Chambers’ Daniel Beard QC, instructed by Hogan Lovells partners Nicholas Heaton and Ivan Shiu, Linklaters, Wilmer Hale partner Duncan Speller, special counsel Cormac O’Daly and senior associate Dana Green, Squire Patton Boggs, and Shepherd & Wedderburn partner Jane Wessel and Claire Stockford

For the fourth party, Thai Airways International

Blackstone Chambers’ Pushpinder Saini QC, instructed by Wragge Lawrence Graham & Co partner Bernadine Adkins

For the fourth party, Japan Airlines

Steptoe & Johnson partners and solicitor-advocates Jonathan Raynes and Angus Rodger

For the fourth parties, Cathay Pacific Airways and Singapore Airlines

Monckton Chambers’ Daniel Beard QC and Thomas Sebastian, instructed by Squire Patton Boggs and Latham & Watkins partner Omar Shah

For the fourth party, Polar Air Cargo

Blackstone Chambers’ Brian Kennelly, instructed by Bird & Bird partner Peter Willis