November 2023 | Insights & Resources, Newsletters
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Feb 2026 | Newsletters | 25 minute read
Welcome to the latest edition of our Cayman Trust and Estates Disputes Bulletin.
In this year’s edition, we explore key developments and emerging trends impacting trust and estate litigation in the Cayman Islands. From recent case law and practical insights on trust dispute resolution strategies. Our goal is to keep you informed and prepared for the challenges and opportunities ahead.
Key Contacts
Partner, Head of Cayman & BVI Private Client & Trust
Counsel
Senior Associate
Paralegal
Legal Excellence
The Cayman and BVI Private Client practice is ranked in the Chambers and Legal 500 directories as a notable market leader in this sector.
Robert Lindley leads the firm’s Cayman and BVI Private Client and Trust practice. Robert has been consistently ranked by Chambers and the Legal 500 directories and is in Band 1 and considered to be a ‘Leading Partner’ for Offshore Trusts, including being ranked as one of the best offshore trust lawyers in Spear’s Tax and Trust Indices.
Sally Peedom is also ranked by Chambers and the Legal 500 directories.
Cayman Court Agrees to Unwind Trust Tainted by Mistaken Advice
Conyers is pleased to have acted for the Settlor in a successful application to have the establishment of a Cayman Islands discretionary trust, the S Trust, set aside from its inception. The application to the Cayman Court was made under section 64A of the Cayman Islands Trusts Act (2021 Revision), which provides relief in relation to mistaken exercise of fiduciary powers. The case demonstrates the flexibility of the section 64A jurisdiction and the Cayman Court’s pragmatic approach to delivering relief in unforeseen circumstances which may arise in the administration of trusts.
Arbitration in Trust Disputes
The use of arbitration to resolve trust disputes is gaining momentum in offshore jurisdictions and the Cayman Islands is poised to emerge as a progressive forum for trust arbitration. Following the enactment of the Arbitration Act in 2012, Cayman has seen a growing interest in incorporating arbitration clauses into trust deeds as settlors and trustees seek more private, flexible and efficient dispute resolution mechanisms. However, there still remains considerable scepticism as to whether trust disputes are capable of resolution by arbitration, with concerns raised by jurisdictions that are yet to introduce statutory framework governing the resolution of trust disputes by arbitration as well as jurisdictions that have enacted legislation and significant complexities and limitations have arisen in the course of arbitration.
Connect with the Team
Cayman’s Firewall Provisions in Relation to Foreign Divorces with a Cayman Connection
Matrimonial disputes can be a trying and traumatic state of affairs for all involved, including trustees. Where a family trust is involved, the more contentious of marital disputes can quickly draw trustees into the ring for a bout over rights to information regarding, or even to assets held in, the trust. If foreign matrimonial proceedings seek to encroach on the administration of a Cayman Islands trust, the trustee is protected in many respects by what are known as the “firewall provisions” of the Trusts Law (2020 Revision) (“Trusts Law”). Judgments delivered by the Grand Court of the Cayman Islands in 2016 & 2019 and recent legislative reform have affirmed the operation and robustness of the firewall provisions and reinforced the need for a trustee of a Cayman trust under attack in foreign matrimonial proceedings to ensure that its response is, at all times, in the best interests of the trust.
Non-Contentious Probate Rules: The Impact of Batista v. Batista
On 24 June 2022, the Applicant (“W”) filed an application to the High Court seeking permission to apply for a grant of probate in respect of the Estate of his deceased father, who died in Brazil on 18 June 2019 (the “Deceased”). The application was brought under the Non Contentious Probate Rules (“NC Probate Rules”) r 67(1)(b) on the basis that the Respondent, who was his estranged brother (“D”), had not applied for a grant and/or had failed to proceed with his application for a grant with reasonable diligence (the “Application”).
Meet the Team
The Cayman trust disputes team is a constituent part of Conyers’ Global Private Client & Trust team which is led by Partner Robert Lindley. Experts in their fields, the team’s Sally Peedom, Lana Dixon and Rhonda Coleman deliver sophisticated, trust and estate dispute solutions and advice for high net worth individuals, trustees, executors and other fiduciaries and private banks, reinforcing Conyers’ reputation as a trusted advisor in the offshore private client space.
To explore our Trust Dispute services click Trust Litigation Lawyers | Conyers and for our Private Client & Trust services click here.