Cayman Islands Litigation Funding: An Undertaking From A Third-Party Funder May Be Adequate Security

The Singapore Court recently delivered its judgment in Hyflux Ltd (in compulsory liquidation) v Lum Ooi Lin [2023] SGHC 113 ("Hyflux"). Despite the litigation funding landscape being slightly different in Singapore, the reasoning in Hyflux is likely to be persuasive in the Cayman Islands, as well as other common law jurisdictions.

First instance decision

The Senior Assistant Registrar ordered the Plaintiff to furnish security for the Defendant's costs for the period until the filing and/or exchange of affidavits of evidence-in-chief by way of (a) the provision of a costs undertaking jointly by the litigation funders on terms satisfactory to the Defendant ("the Undertaking"); (b) or a banker's guarantee on terms satisfactory to the defendant; (c) or a solicitor's undertaking on terms satisfactory to the defendant; or (d) if the parties are unable to agree on the terms of the costs undertaking, banker's guarantee, or solicitor's undertaking, then the security