Free-Standing Freezing Orders: Now Available In The Cayman Islands?

Introduction

Free-standing freezing orders (or Mareva injunctions) have once again been considered by the Cayman Islands Grand Court.¹ For the first time, a freezing order has been granted despite the absence of substantive proceedings in the jurisdiction. The judgment in Gillies-Smith has grabbed the legal headlines and has been heralded as a groundbreaking development in Cayman Islands law. This update examines the decision and considers its impact.

Facts

The parties to the case were a separated couple who had resided in Ontario, Canada in a property subject to a substantial mortgage. During the marriage the defendant (the husband) won C$15 million in a lottery and acquired significant assets, including a property in the Cayman Islands and at least two bank accounts with Cayman National Bank. According to the plaintiff's evidence, the defendant informed her that he wanted a divorce on April 29 2011 and left for the Cayman Islands on May 1 2011. He had not been