The Rise Of Arbitration In The Cayman Islands

When will mankind be convinced and agree to settle their difficulties by arbitration?
Benjamin Franklin, 1783

Anecdotally, there has been a marked increase recently in the use of arbitration as a means by which to resolve commercial disputes in the Cayman Islands. As well as being consistent with the growth of arbitration internationally as a dispute resolute method, this is no doubt attributable in part to the enactment of the Arbitration Law (2012 Revision) (the "Arbitration Law"), which modernised the arbitration framework in the Cayman Islands. The Arbitration Law is based on the UNCITRAL Model Law on International Commercial Arbitration, which has now been adopted in 74 jurisdictions worldwide.¹ Arbitration typically arises as a result of the inclusion of an arbitration agreement in a commercial agreement, and so it is natural that it has taken some time following the enactment of the Arbitration Law for disputes to arise under such agreements.