Oct 2014
##CAYMAN ISLANDS
###COURT OF APPEAL
####SECURITY FOR COSTS – INDEMNITY BOND – WHETHER INDEMNITY BOND PROVIDED REAL SECURITY
By way of summons the Plaintiff sought an order to retrospectively vary a Security Order (and subsequent unless order) so the Plaintiff would be allowed to provide security for costs by way of after-the event insurance and an unconditional and irrevocable bond in the sum of US$100,000 (the “Indemnity Bond”). The Plaintiff had obtained the Indemnity Bond from QBE Insurance (Europe) Limited, a London based international insurer and reinsurer.
In determining whether the Indemnity Bond was capable of discharging the security order, the Chief Justice applied the test in the English case of _Versloot Dredging BV -v- HDI Gerling Industries Versicherung AG_ [2013] EWHC 658 (Comm) as stated by Justice Chrisopher Clarke: