Quebec's Court of Appeal has dismissed appeals from Iraqi Airways against an earlier ruling from the Canadian Supreme Court which rejected its attempt to block war reparations compensation by pleading state immunity.
The case, which has been running for 20 years, is based on compensation for the destruction of Kuwait Airways' fleet during the Gulf conflict in 1990.
Iraq's Government later ordered several Bombardier CRJ aircraft. Law firm Fasken Martineau, which represents Kuwait Airways, believes the aircraft are destined for Iraqi Airways and can, therefore, be seized to help pay off a $1.2 billion compensation bill.
Christopher Gooding from Fasken Martineau says the latest ruling dismisses "the last of Iraq and Iraqi Airways' spurious jurisdictional and procedural objections to enforcement of Kuwait Airways' judgments and the seizure of the Bombardier aircraft".
He adds: "This leaves the way clear for trial of the merits of Kuwait Airways' claims relating to the Bombardier contract."