Order Of Precedence

Arbitration, choice of forum clauses and winding up proceedings in the Cayman Islands: which takes precedence?

As in many other jurisdictions, there are statutory provisions in the Cayman Islands requiring the courts to stay proceedings in favour of arbitration where a valid arbitration agreement exists which applies to the subject matter of the proceedings. Similar principles apply in the case of foreign exclusive jurisdiction clauses.

Several recent decisions have helped to clarify the relationship between the courts' exclusive statutory jurisdiction to wind up companies and exempted limited partnerships ("ELPs") and the ability of a party that opposes a winding up petition to enforce a prior arbitration or foreign exclusive jurisdiction agreement which is said to require the petitioner to have their claim determined in another forum.