BRITISH VIRGIN ISLANDS Trends and Developments Contributed by: Andrew Emery and Mary-Frances Morris, Emery Cooke
BVI IAC growth and updated rules The BVI IAC continues to develop as a regional hub for international arbitration. Its 2021 Rules, which addressed emergency arbitrators, early determination, joinder and consolidation, have now been in operation for several years and are becoming better understood by the international practitioner community. The new Arbitration Committee, reconstituted under Annex D of the 2021 Rules on 1 July 2025, brings together a diverse and experienced panel of practitioners. BVI arbitrations continue to grow in volume, though court- focused litigation remains the dominant form of dis- pute resolution in the jurisdiction. Technology, AI and the future of BVI litigation AI in legal practice The influence of artificial intelligence on BVI dispute resolution is growing, even in the absence of spe- cific regulation. At the practitioner level, AI tools are increasingly being deployed for legal research, docu- ment review, disclosure management and drafting assistance. In a jurisdiction whose large commercial cases generate voluminous documentation and cross- border complexity, the potential for AI-assisted review to reduce cost and compress timelines is significant. However, the risks of AI misuse – in particular, the generation of hallucinated case citations – are real and present. English decisions in Ayinde and Al - Haroun have addressed the professional and procedural consequences of citing non-existent AI-generated authorities. BVI practitioners bear full professional responsibility under the Legal Profession Act 2015 and the Code of Ethics for the accuracy of all materi- als placed before the court, regardless of the tools used to prepare them. Specific guidance from the BVI judiciary or Bar Association on AI use in proceedings is anticipated in the near future. AI and digital evidence The emergence of AI-generated evidence – including deepfake audio, video and synthetic documentation – poses a growing challenge for BVI courts in assess- ing the authenticity and reliability of evidence. The BVI Evidence Act 2006 provides an admissibility frame- work founded on relevance and reliability, and the courts will need to develop approaches to authenti- cate potentially AI-generated or AI-manipulated mate-
rials. The court’s established willingness to engage with novel evidentiary challenges, demonstrated in the digital asset context, provides a foundation for this development. Procedural innovation and access to justice The BVI courts have continued to demonstrate flex- ibility and innovation in procedure, accommodating the international nature of the jurisdiction’s disputes. Hearings conducted across multiple time zones, with witnesses appearing by video link from Russia, China, the Middle East and elsewhere, are routine. The court has shown a willingness to conduct trials in absentia where defendants are represented but elect not to participate. Pre-action protocols, judicial settlement conferences and a more structured approach to case management under the 2023 CPR all contribute to a more efficient litigation environment. Third-party litigation funding has matured significantly as a feature of BVI litigation. Multiple funders com- pete for quality cases, and the jurisdiction’s flexible approach to funding arrangements enables creative structures. The increasing availability of after-the- event insurance, sourced from international markets, complements the funding landscape. As legal direc- tories increasingly consider firms’ relationships with funders when evaluating litigation capabilities, the infrastructure of the BVI’s funded litigation market is becoming more sophisticated and visible. Looking ahead: key issues for 2026 and beyond A number of issues are expected to shape BVI litiga- tion in the coming period. The Privy Council’s decision in Caldicott on the scope of arbitration agreements in shareholder disputes will be one of the most sig- nificant judicial determinations for the jurisdiction in 2026. The ongoing development of the FSC’s regula- tory and enforcement activity – including the comple- tion of the 2025–2026 inspection programme – will generate further satellite litigation across the financial services sector. The BVI courts are likely to be called upon to develop their jurisprudence on digital asset valuation and market manipulation, areas that are rapidly emerging as the next major frontier of crypto litigation.
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