Cayman ISLANDS Law and Practice Contributed by: Sam Dawson, Peter Sherwood and Denis Olarou, Carey Olsen
3.6 Failure to Respond The defendant has 14 days from service of the writ (longer if service is outside of the Cayman Islands) to file an acknowledgement of ser- vice with the court. If the statement of claim was indorsed on the writ, the defendant then has another 14 days from the time limited for acknowledging service of the writ to file and serve a defence. If the statement of claim was not indorsed on the writ, then it must be filed and served within 14 days of the filing of the acknowledgement of service and the defendant has a further 14 days from service of the state- ment of claim to file its defence. The consequences of failing to file an acknowl- edgement of service vary depending on the nature of the claim. If the writ is indorsed with a liquidated demand only, failure by the defendant to acknowledge service of the writ and state an intention to defend will entitle the plaintiff to enter final judg- ment for the principal amount claimed, interest, and fixed costs. If the claim is for unliquidated damages, the plain- tiff may enter an interlocutory judgment against the defendant for damages to be assessed. Other consequences apply for specialist pro- ceedings, such as claims in detinue, possession of land, and mixed claims. Similar consequences flow where the defend- ant does acknowledge service of the writ and indicates an intention to defend, but fails to file a defence on time. Judgments entered against the defendant in default of acknowledgement of service or in default of defence are liable to be set aside or
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. Order 11, Rule 1 of the Grand Court Rules speci- fies a number of potential jurisdictional gateways for service outside of the Cayman Islands. Given the international nature of the businesses formed in the Cayman Islands, arguably the most perti- nent of these gateways is the one that permits service out where the claim is against a current or former director, officer or member of a Cay- man Islands company or a partner of a Cayman Islands partnership and concerns that company or partnership or the status, rights or duties of the relevant director, officer, member or partner in relation to that company or partnership. Other significant gateways permit service out on a defendant who is a necessary or proper party to a suit already commenced or to be com- menced, or where: • the claim concerns a contract made within the jurisdiction or governed by Cayman Islands law; • the claim concerns a trust governed by Cay- man Islands law; • the claim is brought to enforce any arbitral award; and • the claim is brought in respect of a breach of contract committed in the Cayman Islands or in respect of a tort, fraud or breach of duty where the damage was sustained or resulted from an act committed in the Cay- man Islands.
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