CAYMAN ISLANDS Law and Practice Contributed by: Sam Dawson, Peter Sherwood and Denis Olarou, Carey Olsen
tions on which the plaintiff seeks determination or the relief sought. It must also identify the causes of action. Insolvency Proceedings Insolvency proceedings must be begun by petition. The petition must set out: • the particulars of the company’s incorporation; • a description of its business (including a statement about the countries in which it is carried on); • a concise statement of the grounds upon which the winding-up order is sought; and • the name and address of the qualified insolvency practitioner nominated for appointment as official liquidator. Form and Procedure In all cases – writ of summons, originating summons, or petition – the relevant court rules prescribe stand- ard forms that serve as a template. Both a writ of summons and an originating summons have an “expiry date” in that, having been filed, they must then be served upon the defendant within a cer- tain period. This period is six months from the date of issue where leave for service out of jurisdiction is required and four months in all other cases. Unless served within these time periods (or unless validity of the document is extended by order of the court), valid- ity of the originating process document will expire, necessitating the filing of a fresh writ or originating summons. This could have significant consequences if a limitation period expires in the meantime. In general, originating process documents may be amended. A writ may be amended without leave of the court before it is served on the defendant. After service, a writ may be amended without leave once at any time before the pleadings are deemed to be closed, provided the amendment does not consist of adding, omitting, or substituting a party, altering the capacity in which a party is sued, or adding or substi- tuting a new cause of action (these types of amend- ments require leave). Once pleadings have closed (or, before pleadings have closed, if the plaintiff wishes to amend for a sec- ond time), the plaintiff requires leave of the court to
amend the writ. The court has wide discretion over all such amendments. The same rule applies to originat- ing summonses or other originating processes. 3.5 Rules of Service Service of originating process is the responsibility of the plaintiff. Within the jurisdiction, natural persons must generally be served by personal service. Companies registered in the Cayman Islands may be served by delivery to their registered offices in the Cayman Islands. If pro- ceedings are brought under a contract which specifies how originating process is to be served, then service can be effected in accordance with those provisions. In cases where genuine difficulties arise in effecting service, a plaintiff may apply to the court for leave to serve by an alternative method, which may include by email, fax, or newspaper advertisement. Permission to serve by alternative means is not given lightly, but Subject to limited exceptions, leave of the court is required to serve proceedings outside the Cayman Islands. To obtain leave, the plaintiff must: • satisfy the court that it has a good cause of action; • identify the country where the defendant may be found; • specify the proposed method of service and show that it is in accordance with the law of the country where it is proposed to be effected; • satisfy the court that the Cayman Islands is the most appropriate forum; and • identify and meet the requirements of one of the “gateways” for service out of jurisdiction. it can be obtained in appropriate cases. Service Outside the Cayman Islands Order 11, Rule 1 of the Grand Court Rules specifies a number of potential jurisdictional gateways for ser- vice outside of the Cayman Islands. Given the interna- tional nature of the businesses formed in the Cayman Islands, arguably the most pertinent of these gate- ways is the one that permits service out where the claim is against a current or former director, officer or member of a Cayman Islands company or a partner of a Cayman Islands partnership and concerns that
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