Cayman ISLANDS Law and Practice Contributed by: Sam Dawson, Peter Sherwood and Denis Olarou, Carey Olsen
11.3 Interest Awarded on Costs Interest is payable on costs and runs from the date of the costs order. It is calculated according to the rates set out in the Judgment Debts (Rate of Interest) Rules. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Mediation is gaining traction as a method of ADR in the Cayman Islands. However, it remains rela- tively uncommon for large commercial disputes to be resolved by ADR. 12.2 ADR Within the Legal System Save in respect of certain proceedings issued in the Family Division of the Grand Court, ADR is not made compulsory by the court system. There are no prescribed sanctions for unreason- ably refusing ADR. However, as the court has a wide discretion in considering cost awards, it is conceivable that it might be persuaded to take unreasonable refusal of ADR into account in appropriate circumstances. Further, in a recent development in August 2022, the Grand Court introduced Practice Direction No 3 of 2022, which provides that a matter, including a Financial Services Division matter, may be referred to judicial mediation by the Court at any stage in the proceeding. It remains to be seen how this new Practice Direction is implemented in practice, but it underlines the increasing importance that ADR is likely to play in the future. 12.3 ADR Institutions The Cayman Islands Association of Mediators and Arbitrators (CIAMA) promotes the use of
mediation (and ADR generally) in the Cayman Islands.
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration For a detailed treatment of the subject of arbi- tration in the Cayman Islands, please see the Cayman Islands Law & Practice chapter in the Chambers International Arbitration Guide 2024. Domestic arbitration is governed by the Arbi- tration Act, 2012. Enforcement of foreign arbi- tral awards is governed by the Foreign Arbitral Awards Enforcement Act (1997 Revision). 13.2 Subject Matters Not Referred to Arbitration Most matters are arbitrable. One significant exception is matters related to insolvency. 13.3 Circumstances to Challenge an Arbitral Award The award may be appealed on a point of law. In addition, the award may be set aside on the basis that the tribunal lacked jurisdiction as well as on the basis of certain serious procedural irregularities and on the basis that the award is contrary to public policy. 13.4 Procedure for Enforcing Domestic and Foreign Arbitration Both domestic and foreign arbitration awards must be converted into a Grand Court judgment before then being enforced like any other judg- ment of the court. In either case, the enforce- ment application is made ex parte by originat- ing summons. The respondent will have 14 days after being served with the enforcement order to challenge it and, if the respondent does so,
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