Cayman ISLANDS Law and Practice Contributed by: Sam Dawson, Peter Sherwood and Denis Olarou, Carey Olsen
or part payment, the limitation period may be extended. Limitation periods do not apply at all in claims by a beneficiary against a trustee for fraudulent breach of trust or the recovery for trust property. In all cases, aside from limitation, claims might also become barred through delay (“laches”). In claims against companies, limitation stops run- ning if a winding-up order is made in respect of the company. Special limitation rules apply to some claims available to company liquidators. It is also possible for parties to enter into stand- still agreements to pause limitation periods while settlement negotiations are ongoing. 3.3 Jurisdictional Requirements for a Defendant The basis of jurisdiction is primarily territorial and is generally founded on valid service of proceed- ings within the jurisdiction. As such, a person residing in the Cayman Islands or a company incorporated there may generally be sued in the Cayman Islands courts as of right, provided ser- vice of process is duly effected. However, it is potentially open for such a defendant to argue that the Cayman Islands courts should decline to exercise their jurisdiction over the claim in favour of a foreign court that is clearly and distinctly the more appropriate forum (forum non conveniens). Jurisdiction Agreements and Service Outside the Cayman Islands The Cayman Islands courts will also generally accept jurisdiction over disputes that fall within an express jurisdiction agreement between the parties designating the Cayman Islands courts as the forum. Jurisdiction may also be estab- lished if a defendant voluntarily submits to the jurisdiction of the Cayman Islands courts by oth- er means, for example by taking a substantive
step in the proceedings (other than by disputing jurisdiction). Jurisdiction may also be established over defendants residing or registered outside of the Cayman Islands if the court grants leave to serve the originating process outside of the Cayman Islands (see 3.5 Rules of Service ). 3.4 Initial Complaint Writ of Summons Generally, a civil lawsuit is commenced by filing and serving a writ of summons. The writ may be indorsed with the full statement of claim from the outset. However, this is not mandatory and the writ may also be issued indorsed with a con- cise statement of the nature of the claim and the relief sought. In the latter case, the statement of claim must be filed as a separate pleading at a later date. Originating Summons Other specialist modes of commencing pro- ceedings are also available, and, in some cases, they are mandatory. For example, proceedings that are not expected to involve any substantial dispute of fact, such as where the plaintiff seeks declaratory relief in rela- tion to issues of pure contractual interpretation or interpretation of law, may be commenced by an originating summons, which invokes a sim- plified procedure to trial. The originating sum- mons must set out the statements or questions 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 peti- tion. The petition must set out:
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