Litigation 2024 - Trends & Developments

Security for Costs – Costs Recovery Protection for Litigants in the Cayman Islands

In Cayman Islands litigation the general rule is that costs "follow the event". In other words, the losing party is obligated to pay not only their own legal costs, but a portion of the costs of the successful party as well. The portion of the successful party's costs that is payable is determined by way of taxation, conducted based on the type of costs order awarded to the successful litigant by the court. Taxation on an indemnity basis would result in the successful party being entitled to 100% of their recoverable costs, whilst a standard taxation would normally lead to a recovery by the successful party of approximately 60-70% of their costs.