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Caribbean Islands Development Ltd -v- First Caribbean International Bank (Cayman) Limited (Unreported) (8 October 2014)

October 2014 Costs

CAYMAN ISLANDS

COURT OF APPEAL

SECURITY FOR COSTS – INDEMNITY BOND – WHETHER INDEMNITY BOND PROVIDED REAL SECURITY

By way of summons the Plaintiff sought an order to retrospectively vary a Security Order (and subsequent unless order) so the Plaintiff would be allowed to provide security for costs by way of after-the event insurance and an unconditional and irrevocable bond in the sum of US$100,000 (the “Indemnity Bond”). The Plaintiff had obtained the Indemnity Bond from QBE Insurance (Europe) Limited, a London based international insurer and reinsurer.

In determining whether the Indemnity Bond was capable of discharging the security order, the Chief Justice applied the test in the English case of Versloot Dredging BV -v- HDI Gerling Industries Versicherung AG [2013] EWHC 658 (Comm) as stated by Justice Chrisopher Clarke:

 

To continue reading full articles in PDF format:
Caribbean Islands Development Ltd -v- First Caribbean International Bank (Cayman) Limited (Unreported) (8 October 2014)

 

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