Cayman Islands Court Of Appeal Confirms Limits On A Party's Ability To Appeal To The Privy Council

• Published date: 25 May 2020
• Author: Mr Guy Manning, Paul Kennedy and Natasha Partos
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation
• Law Firm: Campbells

In Palladyne International Asset Management B.V. v Upper Brook (A) Limited and others, CICA Appeal No. 5 of 2019, the Cayman Islands Court of Appeal (the "CICA") was invited to consider an application by Palladyne for leave to appeal to the Judicial Committee of the Privy Council ("JCPC") either: (i) as of right pursuant to section 3(1)(a) of the Cayman Islands (Appeal to Privy Council) Order 1984 No. 1151 (the "1984 Order"); or (ii) on the discretionary ground that the matter is of great general or public importance pursuant to section 3(2)(a) of the 1984 Order.

The appeal was in relation to an application for declaratory relief to the effect that Palladyne had not been validly removed as a director of the Upper Brook Companies due to lack of authority and/or to the operation of economic sanctions against Libyan assets. That application was dismissed both before the Grand Court and the CICA. Upon Palladyne seeking leave to appeal, the Fourth and Fifth Respondents submitted that the appeal failed to satisfy the financial threshold in section 3(1)(a) of the 1984 Order for leave to appeal as of right. The CICA held (11 February 2020, Unreported) that the appeal did not meet the financial threshold despite Palladyne's argument that, if successful, it could control and potentially dispose of around $700 million in assets. This is the first time that a Cayman Islands court has ruled on the parameters of an appellant's ability to appeal to the JCPC.

Furthermore, the CICA held that the application did not satisfy the test for discretionary leave under section 3(2)(a) of the 1984 Order. The fact that the case concerned sovereign assets of Libya and involved a number of jurisdictions was not sufficient to show that it was a matter of great general or public importance.

Appeal

The Applicant argued that it was either entitled to appeal as of right pursuant to section 3(1)(a) of the 1984 Order or that the CICA should exercise its discretionary power and grant it leave to appeal pursuant to paragraph 3(2)(a) of the 1984 Order. The CICA has jurisdiction to confirm whether, in cases where leave to appeal as of right is sought, the appeal is properly classified as such.

The 1984 Order states that:

Paragraph 3

• Subject to the provisions of this Order, an appeal shall lie as of right from decisions of the Court to Her Majesty in Council in the following cases-

• Final decisions in any civil proceedings, where the matter in dispute on the appeal to Her Majesty in Council is...