CAYMAN ISLANDS Law and Practice Contributed by: Alan Bercow and Jae Shin, Appleby
The appointing authority is either chosen by the par - ties or is designated by the court in default of agree - ment (Section 2 (1) Arbitration Act). Where the parties fail to determine the number of arbitrators, the default is a single arbitrator (Section 15 Arbitration Act). There are no default provisions applicable to multiparty arbi - trations. 4.3 Court Intervention The Cayman Islands courts can intervene in the selec - tion of arbitrators by upholding a challenge (see 4.4 Challenge and Removal of Arbitrators ). 4.4 Challenge and Removal of Arbitrators A challenge can be made to arbitrators if there are justifiable doubts as to their impartiality and inde - pendence, or if they do not possess the qualifica - tions agreed by the parties (Section 18 Arbitration Act). Subject to any agreed challenge procedure, the challenge is first made to the arbitral tribunal, and if unsuccessful the challenge may be referred to the court (Section 19 Arbitration Act). The court has power to remove arbitrators on the grounds of: • physical or mental incapacity; • failure to properly conduct the proceedings or fail - ure to use reasonable dispatch; and • where substantial injustice will or has been caused (Section 20 Arbitration Act). 4.5 Arbitrator Requirements An arbitrator is required to disclose – prior to appoint - ment and on a continuing basis – any circumstances that might reasonably compromise their independ - ence or impartiality (Section 18 Arbitration Act).
court in Al-Haidar v Rao (unreported, 15 April 2024) that “the competence-competence principle forms part of Cayman Islands law”. A challenge to the tri - bunal’s jurisdiction must be raised no later than sub - mission of the statement of defence (Section 27 (4)). Appointment or participation in the appointment of an arbitrator does not preclude a party from challenging the tribunal’s jurisdiction (Section 27 (5)). 5.2 Circumstances for Court Intervention At the request of either party, the court has the power to rule on the jurisdiction of the arbitral tribunal if the tribunal has itself ruled that it has jurisdiction (Section 27 (9) Arbitration Act). The Arbitration Act does not contain a power for the court to review a negative ruling on jurisdiction by an arbitral tribunal, although an application for leave to appeal on a point of law might be possible. 5.3 Timing of Challenge A party may ask the court to decide on the jurisdiction of the arbitral tribunal within 30 days of notice of the tribunal’s ruling that it has jurisdiction (Section 27 (9) Arbitration Act). 5.4 Standard of Judicial Review for Jurisdiction/Admissibility In relation to a judicial review of a ruling by the arbi - tral tribunal as to its jurisdiction, the Cayman Islands courts have adopted the approach of the UK Supreme Court in Dallah Real Estate and Tourism Holding Co v Government of Pakistan [2010] UKSC 46 that the standard of judicial review is de novo ( Gol Linhas Aéreas SA v MatlinPatterson Global Opportunities Partners (Cayman) II LP [2020] 2 CILR 704, upheld at [2022] UKPC 21). 5.5 Breach of Arbitration Agreement The Cayman Islands courts are bound (in internation - al arbitration) to uphold the arbitration agreement by staying legal proceedings upon application by a party, unless satisfied that the arbitration agreement is null and void, inoperative or incapable of being performed, or that there is no dispute between the parties (Sec - tion 4 Enforcement Act).
5. Jurisdiction 5.1 Challenges to Jurisdiction
An arbitral tribunal may rule on a party’s challenge to the tribunal’s own jurisdiction, including any objec - tions to the existence or validity of the arbitration agreement (Section 27 Arbitration Act). This gives effect to the principle of competence-competence, and it was expressly noted by the Cayman Islands
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