Prest v Petrodel

Prest v Petrodel has something for almost everyone: appalling behavior, a glimpse into the lives of the fabulously wealthy and a diverse range of legal issues appealing to corporate, insolvency, trusts and family lawyers alike.

 

Litigation funding in the Cayman Islands:

On April 4, 2014, Justice Andrew Jones QC delivered the written reasons for his decision to authorize the Joint Official Liquidators (JOLs) of two Cayman Islands funds to enter into a contingency fee agreement with a firm of New York attorneys.  

 

Turning around Strategic Turnaround

On 13 December 2010 the Privy Council delivered its judgment in Re Strategic Turnaround Master Partnership Ltd. The case concerned the ability of a fund to suspend the redemption of shares and the payment of redemption proceeds.

In kind redemptions: A fair deal

In a recent judgement of the Grand Court in the matter of FIA Leveraged Fund (unreported, Grand Court, 18 April 2012), the Court has laid down some general principles applicable to the in kind or in specie distribution of fund assets to redeemed investors and the proper exercise by directors of the power and discretion to make payments in kind.

Receivers and revocable trusts: Reserved powers cannot be exercised against the will of the...

Sidebar:EndnotesSection 14 of the Trusts Law (2007 Revision) of the Cayman Islands provides for the validity of a number of powers to be reserved...

What is new on the Cayman legal front?

The Privy Council issued its decision in the Fairfield Sentry case providing greater certainty as to the finality of the subscription price, redemption price and calculation of net asset value for hedge funds. 

 

A process of redemption

Fallout from the sub-prime credit crisis, the Bernard Madoff affair and recent events in the banking and finance sector have had a severe impact on the hedge fund industry leaving many offshore funds facing substantial redemption requests with insufficient liquidity to meet them.

Friend or foe? Judicial review developement

Judicial review – the process by which a person who is aggrieved by administrative action may, under certain conditions, seek review by a court of the lawfulness of such action – is a concept that has in recent years attracted much attention throughout the common law world.   

 

Without direct taxes, how does the Cayman Islands generate its revenue?

The Cayman Islands is often portrayed as a tax haven. And indeed Cayman does not have any corporation tax, income tax, inheritance tax and...

Law Talk

A recent decision of the Grand Court of the Cayman Islands in Re China Shanshui Cement Group Limited looked at the ability of Cayman...

HSH Cayman v ABN AMRO Bank – examining the consequences of non-compliance with the...

It is not uncommon to hear statements to the effect that the rules of the court are intended to be complied with, and not intended to be mere ‘targets’ towards which to aspire.

Law Talk

The ELP Bill provides that a limited partner does not owe any fiduciary duties to the exempted limited partnership or any other partner when exercising any of its rights or authorities or otherwise in performing any of its obligations under the partnership agreement.

 

The right to lawful administrative action in the Cayman Islands:

There is the prospect of greater accountability and transparency in government if lessons can be learnt in response to any administrative flaws exposed by these challenges. Improved administration ought to be a welcome proposition.

 

Losing the law business

If you are not a lawyer, you may find this next sentence very good news. We are entering a period in human history in which we are going to need fewer lawyers, at least the traditionally trained variety.   

 

Auditors can sleep a little more, but not too soundly, thanks to the UK...

The court upheld the decision of the Court of Appeal and, applying the ex turpi causa non oritur actio (ex turpi causa in brief) principle, struck out summarily the claim against the auditors Moore Stephens of the company Stone Rolls

A reprobate’s best friend – British libel law

I expect the worst financial scandal in the history of the Cayman Islands to unfold in the coming months. The amount in dispute is likely to exceed half a billion dollars and the ensuing litigation has the potential to clutter up the jurisdiction’s Grand Court for many years. 

 

Grand Court decides on fair value determination in merger case

As we move into the final quarter of 2015 we expect to see further developments with respect to local implementation of the CRS and the Cayman AIFMD Regime. 

 

Legal developments

Tania Dons of Conyers Dill & Pearman provides an overview of legislative changes, legal issues and case law of note in the Cayman Islands over the last quarter.