Cayman Islands Litigation: Reflecting On The Year 2023

• Published date: 09 January 2024
• Law Firm: Conyers
• Author: Ms Rowana-Kay Campbell and Tonicia Williams

As the Grand Court of the Cayman Islands reopens for 2024, we reflect on 2023 and some of the large-scale cross-border insolvency and restructuring proceedings, and complex commercial disputes dealt with in the jurisdiction over the past year.

Statistics from the Grand Court

There were approximately 1,579 filings made in the Grand Court, which can be broken down as follows:

• 409 filings in the Financial Services Division, which is an increase from 332 new filings in 2022;
• approximately 323 filings in the Family Division;
• 123 applications for the admission of new attorneys, which was a mix of limited admission and general admission applications;
• 257 filings in the Civil Division;
• 267 filings in relation to probate matters; and
• over 200 filings in the Summary Court.

A search of the Grand Court register shows that, as at 20 December 2023, approximately 129 judgments were delivered this year by Grand Court Judges in the Financial Services Division. In total, across the different divisions, approximately 182 judgments were delivered by the Grand Court this year. The Court of Appeal (civil division) delivered 26 written judgments and 8 written judgments in the criminal division during the same period.

Significant cases handled by Conyers

Conyers Cayman Islands litigation and restructuring attorneys were involved in a raft of complex and novel cross-border engagements. A few particularly noteworthy cases are highlighted below

HQP Corporation Ltd (in official liquidation) FSD 190 of 2021

The Grand Court was asked to determine whether certain Preferred Shareholders can assert claims for damages for misrepresentation in relation to their subscription for shares in a company in liquidation and how such claims rank in the liquidation of the company.

The Grand Court of the Cayman Islands held, for the first time, that shareholders who subscribed for shares in a Cayman company be permitted to prove in the liquidation for misrepresentation claims and that such claims will rank as unsecured debts of the company, ahead of redemption creditors and other members' claims. In reaching this decision, the Grand Court departed from the decision of the House of Lords in Houldsworth v City of Glasgow Bank (1880) 5 App Cas 317. This matter is currently on appeal and will be heard by the Cayman Islands Court of Appeal in 2024.

This issue also arises in Re Direct Lending Income Feeder Fund Ltd (in official liquidation) FSD 108 of 2019 (NSJ), where a different Judge of the Grand Court has been asked to render a decision on the point.

Conyers acts for a major stakeholder in HQP Corporation Ltd.

Virginia Solution SPC Ltd FSD 005 of 2022 and CICA (Civil) Appeal 4 of 2022

In an unprecedented ruling, the Grand Court of the Cayman Islands ordered that a captive insurance...