Security For Costs In Cayman Islands Proceedings – The Impecuniosity Factor

The Cayman Islands Court of Appeal ("CICA") in Traded Life Policies Fund (In Official Liquidation)  ("TLPF") & Anor v Jeremy Leach et al¹ confirmed that where the plaintiff's want of means (impecuniosity) was brought about by the defendant's own conduct (the "Impecuniosity Factor"), this factor alone can, in certain circumstances, be capable of forming a standalone defence to an application for security for costs. Whether this standalone defence is available is highly fact sensitive, but importantly, the CICA has provided useful guidance which can be applied to future cases. This brings greater certainty to an area of the law where previously there was at least a perception of conflicting guidance from the courts.