An attorney pursuing a federal wrongful death and personal injury suit against Siberian Airlines and Airbus Leasing II over a July crash in Russia that killed 129 persons said the airline had insufficient insurance to cover claims in a U.S. court.

Steven C. Marks brought the action Tuesday in a U.S. District Court in Manhattan on behalf of three relatives of a passenger who died.

Mr. Marks said Siberian carried only $300 million insurance, not the $1.2 billion protection most U.S. carriers purchase. He identified the insurance carriers as Germany-based Allianz and the Pritchard Syndicate in London. Allianz said it could not comment immediately.

Mr. Marks, with the Miami-based Podhurst Orseck law firm, noted in his papers that Siberia has a registered agent in the Bronx, N.Y., and Airbus Leasing II Inc. has an office in Virginia.

His filing argues that the case can be brought in New York, because the lease agreement between Airbus and Siberia that governs the aircraft states that each of the companies "submits to the non-exclusive jurisdiction" of both the U.S. District Court in Manhattan as well as state court in New York.

The action was filed against Siberia Airlines--now doing business as S7 Airlines--on behalf of 159 passengers injured or killed. On July 9, Siberian Airlines Flight 778, a leased Airbus-310, veered off the Irkutsk airport runway.

Three Russian nationals are named as plaintiffs and Mr. Marks said he expects more to join the action.

"The insurers have provided $300 million in coverage," Mr. Marks said. "But in the event jurisdiction stays in the United States, their exposure would be far greater."

Airbus Leasing II is affiliated with aircraft manufacturer Airbus and its parent, European Aeronautic Defense and Space Co.

Mr. Marks' complaint charges that Siberia failed to properly train its pilots and crew on how to handle an airplane that had an inoperative thrust reverser. The complaint also charges that several safety procedures were not followed, which led to the crash.

The lawsuit claims Siberia failed to operate the aircraft in a safe and competent manner by knowingly departing with an inoperative thrust reverser.

Mr. Marks said the flight crew attempted to engage both thrust reversers when they should have known one of them wasn't working properly. This led to an asymmetrical thrust, "causing the aircraft to slide off the runway, crash into structures and burst into flames," he said.

Airbus Leasing is named as a defendant in the suit because it owns the aircraft and is legally liable for the negligence of its operation, Mr. Marks said.

The suit seeks personal injury damages for the crash victims and survivors, as well as economic reparations for those who perished.

Mr. Marks said if the suit is successful and if the insurers do not make good on all awards above the $300 million limit, they will be subject to bad faith actions.

Special Reports /

Siberian Airlines Cover Limits Too Low: Attorney

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