Enforcement of Foreign Judgments and Interim Orders - Part 1 (Interim Orders in Aid of Foreign Proceedings)

The Law Reform Commission (“the Commission”) initiated research in August 2011 into the mechanisms for enforcing judgments between the Cayman Islands and foreign jurisdictions.

The review focused on:

• the enforceability of Cayman Islands Grand Court judgments in the United Kingdom;
• the recognition and enforcement of judgments of the United Kingdom’s superior courts in the
  Cayman Islands;
• the enforcement of non-monetary judgments issued by foreign superior courts; and
• the facilitation of foreign interim orders within the Cayman Islands.

On 6th March, 2012, the Commission published an Issues Paper titled “The Enforcement of Foreign Judgments and Interim Orders” for public consultation. The paper examined whether Cayman courts could enforce foreign interim relief, such as Mareva injunctions, even where no substantive proceedings
were brought locally.

The consultation period initially ran from 6th March, 2012 to 26th March, 2012, but was extended twice, ultimately concluding on 30th April, 2012.

Following a detailed review of the submissions received, the Commission prepared its Final Report titled “The Enforcement of Foreign Judgments and Interim Orders - Part 1: Interim Orders in Aid of Foreign Proceedings”. The Report was submitted to the Honourable Attorney General on 8th March, 2013,
accompanied by the proposed Grand Court (Amendment) Bill, 2013.

The Bill proposed empowering the Grand Court to:

• grant interim relief, including interlocutory injunctions and the appointment of receivers, in connection with foreign proceedings;
• make such orders whether or not substantive proceedings are commenced in the Cayman Islands;
• impose terms and conditions, or refuse relief, where it would be unjust or inconvenient; and
• make incidental orders and rules to ensure effectiveness, including service of applications outside the jurisdiction.

The Grand Court (Amendment) Bill, 2014 was passed by Parliament on 11th September, 2014, received assent on 24th September, 2014 and commenced on 24th November, 2014.