The Changing Landscape Of Litigation Funding In Cayman

Businesses that litigate in the Cayman Islands courts have historically had few alternatives to the traditional funding model, i.e., paying a law firm a fixed hourly rate. Ancient laws, fashioned for a different era, still clank their chains, inhibiting the development of alternative funding. This may, however, be about to change. The Law Reform Commission has recently made a proposal that, if implemented, would radically improve the options available to litigants and in doing so, improve access to justice.

Common law rules dating from medieval England outlawing what are known as champerty and maintenance are still in effect in the Cayman Islands. They criminalize and render unenforceable arrangements whereby third parties provide funding for litigation without sufficient justification in the eyes of the law. In their undiluted form, these rules do not allow plaintiffs' lawyers to act on a "no win no fee" basis, preventing plaintiffs from protecting themselves against