CAYMAN ISLANDS Law and Practice Contributed by: Alan Bercow and Jae Shin, Appleby
2.6 Judgment Without Trial Judgment in default can be awarded where a defend - ant does not participate in the proceedings, by not filing an acknowledgement of service or a defence within the prescribed time. Summary judgment can be awarded, without the need for a full trial, where the defendant has no defence to the claim or to the relevant part of the claim, in that the defendant has not shown a fair or reasonable probability that they have a real, or bona fide, defence ( Merren v Cayman National Bank [2008] CILR 428). 2.7 Rules for Pleading Fraud As a matter of professional conduct, an attorney must not make any allegation of fraud or dishonesty unless they have clear instructions to do so and have sat - isfied themselves that there is reasonably credible material supporting a prima facie case (Rule 8.04 of the Code of Conduct for Cayman Islands Attorneys- at-Law). 2.8 Claims Against “Unknown” Fraudsters The Cayman Islands courts have recognised that it is permissible for claimants to issue proceedings, and for courts to award injunctive relief, against defendants identified other than by name (“persons unknown”) ( Ernst & Young Ltd v Department of Immi- gration [2015] 1 CILR 151). Pleadings against such “persons unknown” must be made with sufficient particularity that any person to whom any court order (against “persons unknown”) is shown should be able to know whether or not it is descriptive of (and there - fore directed to) that person. Due to the difficulties relating to service of documents to “persons unknown”, claimants will generally need to apply for: • dispensation of personal service; and • authorisation of alternative or substituted service by means that could reasonably be expected to notify the persons likely to be affected by the terms of any order. The Cayman Islands courts have broad powers and wide discretion to provide for substituted service (see 4.2 Service of Proceedings out of the Jurisdiction ). Examples of such methods from more recent Eng -
evidence for the purposes for which the leave was granted and not to use such information or evidence for any ulterior or collateral purpose. Applicants will be normally required by the court to provide express undertakings as to the use of any documents or infor - mation obtained (in addition to undertakings as to costs of compliance and cross-undertakings in dam - ages). 2.4 Procedural Orders As noted in 2.3 Obtaining Disclosure of Documents and Evidence From Third Parties , applications for freezing injunctions, search orders and NPOs/Bank - ers Trust Orders can be made without notice. In those circumstances, the applicant is under a duty of full and frank disclosure (as described in 2.3 Obtaining Disclosure of Documents and Evidence From Third Parties ). 2.5 Criminal Redress In the Cayman Islands, victims of fraud increasing - ly pursue dual-track approaches, seeking redress through both criminal and civil processes. The Finan - cial Crime Investigation Unit of the Royal Cayman Islands Police Service handles fraud investigations, with prosecution conducted by the Office of the Direc - tor of Public Prosecutions under relevant legislation including the Penal Code (2014 Revision) and the Pro - ceeds of Crime Act (2025 Revision). The court has the discretion to stay civil proceedings when criminal matters are ongoing. The benefits of pursuing criminal redress potentially include: • compensation orders under Section 33 of the Penal Code; • access to confiscation proceedings under the Pro - ceeds of Crime Act; and • lower effort required by the victim (as prosecution is conducted by the State). However, victims have limited control over criminal proceedings, with decisions on prosecution and case management resting with authorities. Fraud victims who have the funds to do so often prioritise civil rem - edies.
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