Liquidators applied to the Grand Court for sanction to bring proceedings in the United States against Barclays Bank PLC and DLA Piper LLP under Section 147 of the Cayman Islands Companies Law (2013 Revision). The intention was to have those US proceedings funded pursuant to a contingency fee agreement with Reid Collins & Tsai LLP, a New York law firm.
The judgment is important because Jones J took the opportunity to provide what amounts to a helpful guide in respect of the Cayman Court’s approach to liquidator’s applications (pursuant to Section 110 of the Companies Law) for sanction to commence proceedings within and outside of the jurisdiction. Jones J also discussed the type of litigation funding and contingency fee agreements the Court would be willing to sanction and what they should contain.
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In the matter of ICP Strategic Credit Income Fund Ltd, Grand Court of the Cayman Islands (Financial Services Division) Cause No. 82/269 of 2010, per Jones J (4 April and 15 May 2014)