Latest updates

AHAB v Saad – importance of a particularised and principled tracing claim
  • White Collar Crime
  • Cayman Islands
  • July 23 2018

In Ahmad Hamad Algosaibi & Brothers Company (AHAB) v Saad, the Grand Court found that AHAB's claims, which attempted to trace its funds into the hands of defendant SIFCO5, were "unparticularised and unprincipled". Further, AHAB was unsuccessful in establishing that funds representing traceable proceeds from the Money Exchange reached SIFCO5 or in articulating any discernible cause of action against SIFCO5 in respect of such funds.

Security for costs – a foreign affair
Harney Westwood & Riegels
  • Private Client & Offshore Services
  • Cayman Islands
  • July 19 2018

During the early stages of litigation, a well-advised defendant will consider how to enforce a Cayman Islands court costs order in the foreign jurisdiction where the claimant's assets are located, and whether it should seek security from the claimant for the costs of doing so. The Court of Appeal has recently considered whether a foreign claimant should give security limited to the costs of enforcing an order in the foreign jurisdiction only or for the (much greater) amount of defending the appeal.

Security for costs – a foreign affair
  • Litigation
  • Cayman Islands
  • July 17 2018

During the early stages of litigation, a well-advised defendant will consider how to enforce a Cayman Islands court costs order in the foreign jurisdiction where the claimant's assets are located, and whether it should seek security from the claimant for the costs of doing so. The Court of Appeal has recently considered whether a foreign claimant should give security limited to the costs of enforcing an order in the foreign jurisdiction only or for the (much greater) amount of defending the appeal.

Grand Court dismisses multibillion-dollar fraud claims in one of largest Ponzi schemes in history
Harney Westwood & Riegels LLP
  • Private Client & Offshore Services
  • Cayman Islands
  • July 12 2018

In a landmark ruling, the Grand Court emphatically dismissed a multibillion-dollar claim in a case involving allegations of fraud arising from one of the largest corporate collapses of the financial crisis. The case has showcased the court's ability to manage high-profile large-scale litigation, demonstrating especially the quality of the Cayman Islands judiciary and the court's ability to use cutting-edge technology, as well as the resources and flexibility to manage a year-long, multi-jurisdictional trial.

Grand Court dismisses multibillion-dollar fraud claims in one of largest Ponzi schemes in history
  • White Collar Crime
  • Cayman Islands
  • July 09 2018

In a landmark ruling, the Grand Court emphatically dismissed a multibillion-dollar claim in a case involving allegations of fraud arising from one of the largest corporate collapses of the financial crisis. The case has showcased the court's ability to manage high-profile large-scale litigation, demonstrating especially the quality of the Cayman Islands judiciary and the court's ability to use cutting-edge technology, as well as the resources and flexibility to manage a year-long, multi-jurisdictional trial.

Court declines to restrain foreign trust proceedings
  • Litigation
  • Cayman Islands
  • July 03 2018

The recent Grand Court decision in T Co v AA, BB, CC, DD, EE (a minor) is a good reminder of the court's approach to service out of the jurisdiction and provides insight on the scope of jurisdiction clauses contained in trust instruments.

Court declines to restrain foreign trust proceedings
Harney Westwood & Riegels
  • Private Client & Offshore Services
  • Cayman Islands
  • June 28 2018

The recent Grand Court decision in T Co v AA, BB, CC, DD, EE (a minor) is a good reminder of the court's approach to service out of the jurisdiction and provides insight on the scope of jurisdiction clauses contained in trust instruments.

Getting schooled in Nord Anglia – extra safeguards for companies facing appraisal litigation
  • Litigation
  • Cayman Islands
  • June 12 2018

In Nord Anglia the justice made directions orders regarding the use of keyword searches, the number and scope of information requests, and the conduct of management meetings consistent with the orders made in Xiadu Life Technology. Further, the judgment will provide welcome safeguards for companies facing appraisal litigation in the Cayman Islands if adopted on a wider basis.

Getting schooled in Nord Anglia – extra safeguards for companies facing appraisal litigation
Harney Westwood & Riegels
  • Private Client & Offshore Services
  • Cayman Islands
  • June 07 2018

In Nord Anglia the justice made directions orders regarding the use of keyword searches, the number and scope of information requests, and the conduct of management meetings consistent with the orders made in Xiadu Life Technology. Further, the judgment will provide welcome safeguards for companies facing appraisal litigation in the Cayman Islands if adopted on a wider basis.

Shanda Games: Court of Appeal confirms timing for leave to appeal to Privy Council
  • Litigation
  • Cayman Islands
  • June 05 2018

Appeals to the Privy Council from the Court of Appeal are regulated in the Cayman Islands (Appeals to Privy Council) Order 1984. However, the order does not provide for how to determine the date of a decision. The Court of Appeal recently ruled that for the purposes of an application for leave to appeal to the Privy Council, time runs from the date on which an order is sealed or perfected, not the date on which the judgment is delivered.

Shanda Games: Court of Appeal confirms timing for leave to appeal to Privy Council
Harney Westwood & Riegels
  • Private Client & Offshore Services
  • Cayman Islands
  • May 31 2018

Appeals to the Privy Council from the Court of Appeal are regulated in the Cayman Islands (Appeals to Privy Council) Order 1984. However, the order does not provide for how to determine the date of a decision. The Court of Appeal recently ruled that for the purposes of an application for leave to appeal to the Privy Council, time runs from the date on which an order is sealed or perfected, not the date on which the judgment is delivered.

Court reaffirms high threshold for case management stays
  • Litigation
  • Cayman Islands
  • May 29 2018

In a recent case, a petition to wind up a company was issued by its majority shareholder. The minority shareholder – a Samoan entity – issued an application to stay the petition on the basis that there were related proceedings in Samoa, and argued that Samoa was the proper forum in which to argue these matters. The court refused to grant the stay, finding that the high burden imposed in stay applications of this type had not been met.

Court reaffirms high threshold for case management stays
Harney Westwood & Riegels LLP
  • Private Client & Offshore Services
  • Cayman Islands
  • May 24 2018

In a recent case, a petition to wind up a company was issued by its majority shareholder. The minority shareholder – a Samoan entity – issued an application to stay the petition on the basis that there were related proceedings in Samoa and held that Samoa was the proper forum in which to argue these matters. The court refused to grant the stay, finding that the high burden imposed in stay applications of this type had not been met.

Proceedings bowled out after unplayable delivery
  • Litigation
  • Cayman Islands
  • May 22 2018

The Grand Court of the Cayman Islands has set aside service of proceedings against a foreign defendant, concluding that the plaintiff had abused the court process in pursuing the proceedings and failed to establish that the court should exercise its jurisdiction over the defendant. The court held that the defendant's immunity as the employee of a New Zealand crown entity was an "unplayable delivery" for the plaintiff and weighed heavily against the exercise of the court's exorbitant jurisdiction.

Proceedings bowled out after unplayable delivery
Harneys
  • Private Client & Offshore Services
  • Cayman Islands
  • May 17 2018

The Grand Court of the Cayman Islands recently set aside service of proceedings against a foreign defendant, concluding that the plaintiff had abused the court process in pursuing the proceedings and failed to establish that the court should exercise its jurisdiction over the defendant. The court held that the defendant's immunity as the employee of a New Zealand crown entity was an "unplayable delivery" for the plaintiff and weighed heavily against the exercise of the court's exorbitant jurisdiction.

Court of Appeal rules on dissenters' discovery
  • Litigation
  • Cayman Islands
  • May 15 2018

The Cayman Islands Court of Appeal has released its decision in the appeal of a directions order on the issue of whether dissenting shareholders in appraisal actions under Section 238 of the Companies Law are required to give discovery. The court emphasised the danger in forming a priori assumptions regarding relevance and concluded that there was insufficient justification for adopting an "extreme and unique" position of one-sided disclosure in Section 238 cases.

Court of Appeal rules on dissenters' discovery
Harneys
  • Private Client & Offshore Services
  • Cayman Islands
  • May 10 2018

It has long been argued that no sui generis category of litigants is exempt from the general rules of discovery, which aim to protect the integrity of the litigation process. The Cayman Islands Court of Appeal recently released its decision in the appeal of a directions order, in which the contested issue was whether dissenting shareholders in appraisal actions under Section 238 of the Companies Law are required to give discovery.

Costs of breaching an exclusive jurisdiction clause: BDO Cayman v Argyle Funds
  • Litigation
  • Cayman Islands
  • May 08 2018

A recent Grand Court of the Cayman Islands decision has confirmed that if a party pursues foreign proceedings in breach of a Cayman Islands exclusive jurisdiction (or similar) clause in a contract, that party faces the prospect of having to pay both the Cayman and foreign litigation costs of the counterparty on the indemnity basis.

Costs of breaching an exclusive jurisdiction clause: BDO Cayman v Argyle Funds
Harneys
  • Private Client & Offshore Services
  • Cayman Islands
  • May 03 2018

A recent Grand Court of the Cayman Islands decision has confirmed that if a party pursues foreign proceedings in breach of a Cayman Islands exclusive jurisdiction (or similar) clause in a contract, that party faces the prospect of having to pay both the Cayman and foreign litigation costs of the counterparty on the indemnity basis.

Dissenting shareholders: judicial management and e-discovery
  • Litigation
  • Cayman Islands
  • May 01 2018

In a partial ruling in Xiaodu Life Technology, the Cayman Islands Grand Court ruled on the scope of the company's discovery and the use of keyword searches; whether the number of information requests should be limited; and the number and conduct of management meetings, including whether they should be open or without prejudice.