Meaning
Statutory provisions in the Cayman Islands Arbitration Act allow the court to issue interim measures in support of arbitration proceedings seated outside the territory. Under Section 11a Cayman, the Grand Court can grant freezing orders, injunctions and orders to preserve evidence even if the arbitration is taking place in another country. This provides a valuable tool for claimants who need to secure assets located in the jurisdiction while their main dispute is being arbitrated.
Injunction Extension
Freezing orders can be obtained to prevent a party from dissipating assets during the arbitration. This power is used when the respondent holds shares in a Cayman company or has funds in local bank accounts, ensuring that the tribunal’s eventual award can be satisfied.
Court Evaluation
The court evaluates the application using the same principles that apply to domestic litigation. The applicant must show that the case is serious and that there is a risk of asset dissipation if the relief is not granted.
Foreign Coordination
This provision reflects the jurisdiction’s support for international arbitration and cooperation with foreign tribunals. It allows the Grand Court to act as a supportive forum, helping to resolve cross-border commercial disputes by securing assets while the main trial proceeds.
