Background
The judgment delivered on 19 February 2019 in the matter of
VRG Linhas Aereas S.A. v Matlin Patterson Global et al
(FSD 137 of 2016 (IMJ)) has provided some welcome guidance on the
circumstances under which the enforcement of foreign arbitral
awards may be refused in the Cayman Islands.
The dispute arose from the sale of an airline following which
the plaintiff obtained an arbitral award in Brazil. The plaintiff
was granted leave at an ex parte hearing to enforce the arbitral
award in the Cayman Islands pursuant to the Foreign Arbitral Awards
Enforcement Law (1997 Revision). Subsequently, an application was
made by the defendants to set aside the ex parte order on three
main grounds: