Meaning
A statutory rule that authorises the grand court to order interim injunctions in aid of foreign court proceedings or arbitrations. The Cayman Islands Grand Court Law Section 11a allows litigants to freeze assets or obtain disclosure in the Cayman Islands while the main dispute is resolved elsewhere. It supports international enforcement by ensuring that assets are not moved out of Cayman entities before a final judgment is rendered.
Injunctive Relief
An application for an injunction under this section can be made independently of any substantive claim in the local territory. This structure allows the court to act swiftly to protect the integrity of the foreign dispute.
Asset Recovery
Creditors seeking to recover funds from Cayman-registered funds or holding companies find this provision particularly useful. By utilising the Cayman Islands Grand Court Law Section 11a, they can prevent the distribution of capital to redemption-seeking investors during a dispute. This preservation of the fund’s assets increases the likelihood of a successful recovery once the main trial concludes.
It maintains the status quo during prolonged litigation in other jurisdictions.
Filing Requirement
The applicant must show a clear connection to the foreign litigation and establish that the assets are located within the court’s jurisdiction. Legal representatives present the foreign claim documents alongside evidence of the risk of asset dissipation.
