International sanctions were imposed by the United Nations in
respect of Libya in 2011. The UN resolutions were given effect by
the EU and in the Cayman Islands through the Libya (Restrictive
Measures) (Overseas Territories) Order 2011 (as amended)
(the Order). Article 10(4) of the Order implements
an asset freeze: unless under the authority of a sanctions licence,
a person shall not "deal with" funds or economic
resources which are owned, held or controlled by a person
designated under the Order. It is also an offence to circumvent the
Order.
Palladyne International Asset Management (PIAM)
brought claims against three Cayman Islands investment funds
(the Upper Brook Funds), whose assets were frozen
under the Order, and their proper directors. PIAM's primary
case was that the term "use", when properly interpreted,
is wide enough, when it relates to "funds" which are
shares in a Cayman company, to cover the exercise of voting rights
to appoint and/or remove directors
