Guide To Litigation Costs In The Cayman Islands (September 2011)

INTRODUCTION: RECOVERABILITY OF LEGAL COSTS

A successful litigant in the Cayman Islands in inter partes proceedings will generally be entitled to recover from the losing side his/her reasonable costs, legal and other, incurred in conducting the proceedings in an economical, expeditious and proper manner. The principle that the 'loser pays' will apply by default unless the Grand Court orders otherwise. The Grand Court has power to determine whether, by whom, and to what extent costs are to be paid.

Special considerations apply in relation to the recoverability of the costs incurred by trustees, personal representatives and those involved in company liquidation proceedings (such as an official liquidator, or a creditor petitioning to wind-up an insolvent company). To the extent that these office holders are party to any proceedings in their capacity as such, they will generally be entitled to payment of their costs out of the fund of assets held by the trust, the