Walkers has successfully represented a large state owned bank (the "Bank") in an application made in the Cayman Islands Courts for a US$2.6 Billion freezing order under section 11A of the Grand Court Act (as amended) and section 78 of the Merchant Shipping Act (as amended). The application was made ancillary to proceedings originally issued in England where the English Courts granted a worldwide freezing order and a Dadourian order which permitted the Bank to seek an in personam order from the Cayman Islands court against the Respondent in a form that substantially follows the form of (and goes no wider than) the English freezing order.
Having considered submissions from leading counsel on an ex parte basis, the Cayman Court was satisfied that the terms of the Dadourian order were complied with, the test for obtaining a freezing injunction under Cayman Islands law was met independently of the conclusions reached by the English Courts in granting the English freezing order and that it was in the interest of justice to also restrict any dealings in respect of the sole known physical asset within the Cayman Islands, being a yacht.
The Court was also satisfied that it was appropriate to permit service of the Cayman Injunction out of the jurisdiction and allow service by an alternative method, highlighting the importance of an applicant establishing the "practical impossibility" of effecting service in the ordinary way when seeking an order permitting service by alternative means.
For more information or if you require offshore legal advice, please contact any of the listed individuals on the Insolvency and Dispute Resolution team in Dubai and Cayman who worked on the matter.