1.1 Prevalence of Arbitration
The Cayman Islands arbitration industry continues to develop following the introduction of the modern Arbitration Law, 2012 (" Law "). For the time being, it remains mainly domestic in nature, but the introduction of the Law, combined with support from the Cayman Islands' strong and highly regarded court system, should facilitate the industry's development.
The recent decision of the Grand Court in BDO Cayman Ltd concerning Argyle Funds SPC Inc (FSD 163 of 2017, 13 February 2018), in which the court restrained a party from continuing proceedings commenced in breach of an arbitration agreement, emphasises the willingness of Cayman Islands courts to accord primacy to arbitration agreements, and confirms the status of the Cayman Islands as a pro-arbitration jurisdiction.
1.3 Key Industries
Cayman Islands arbitration clauses tend to be more common in service agreements involving financial institutions, professional service providers and funds.
1.4 Arbitral Institutions
Domestic arbitrations tend to be ad hoc . A variety of major arbitral institutions tend to be named in arbitration agreements with an overseas seat.
2 Governing Law
2.1 Governing Law
Arbitration proceedings commenced after 2 July 2012 that have their seat in the Cayman Islands (and the enforcement of awards made therein) are governed by the Law, which is based on the UNCITRAL Model Law and the English Arbitration Act 1996.
Enforcement of arbitral awards made by arbitral tribunals seated in other jurisdictions is governed by the Foreign Arbitral Awards Enforcement Law (1997 Revision) (" FAAEL ").
2.2 Changes to National Law
There have been no changes to the Law or the FAAEL in the past year, and there is no relevant pending legislation.
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