Cayman Islands: How is Dispute Resolution Integrated

If the case when deciding whether to allow the matter to proceed in the Cayman Islands. The courts usually grant a stay of proceedings commenced in breach of an agreement to refer matters to a foreign court, unless the claimant had a strong case why the proceedings should not be stayed. This requires more than simply showing that the Cayman Islands are the most convenient jurisdiction.

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The main forms of alternative dispute resolution used in the Cayman Islands are arbitration and mediation. The most common alternative to litigation is arbitration. ADR methods, such as mediation, early neutral evaluation and expert determination, are uncommon in the Cayman Islands, but expert determination is more common in construction disputes and mediation is becoming more common in financial and insurance disputes.

The Arbitration Law, which is based on the UNCITRAL Model Law on International Commercial Arbitration, came into force on 2 July 2012 and has brought Cayman Islands law in line with international standards. The Arbitration Law applies to all arbitrations held in the Cayman Islands, irrespective of where the parties are based. It governs the conduct of arbitrations and contains provisions to enforce interim measures and awards made in foreign arbitral proceedings. Mandatory provisions, such as the requirement for the tribunal to maintain impartiality and avoid conflicts of interest, are designed to protect the integrity of arbitration proceedings. It is expected that arbitration will become more popular in the Cayman Islands as a result of the enactment of the Arbitration Law.

Mediation is also being increasingly used in the Cayman Islands to resolve disputes. Although mediation is not currently required by the courts in relation to civil disputes, it is likely to be extended to proceedings issued in the Civil and Financial Services Divisions of the Grand Court. Despite the increased use of arbitration and mediation, the proportion of large commercial disputes resolved by means of ADR (in any form) remains small.


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