When a plaintiff obtains judgment against an insured but
insolvent defendant in the Cayman Islands is the plaintiff entitled
to the policy proceeds or do they have to be paid to the liquidator
for the benefit of the defendant's creditors? The answer is yes
when the claim involves a vehicle but is less clear in other cases.
This article considers the arguments for and against a plaintiff
being entitled to the policy proceeds in cases that do not involve
a vehicle.
Background
On 28 January 1927 Mr Chaplin was knocked down by a taxi
belonging to the Harrington Motor Company Limited. He sued and was
awarded damages and costs in the sum of £541 13s. 5d.
However, before he could recover, the company went into liquidation
and the insurers paid the money, less some outstanding premiums, to
the liquidators. Mr Chaplin issued a summons seeking an order
that the liquidators pay him the money and lost. He appealed to the
Court of Appeal and lost again. The position was
