Private Funding of Legal Services Act 2020: Codification and Clarity in Cayman

As foreshadowed in previous Conyers briefings¹, the Private Funding of Legal Services Act 2020 (the “Act”) is on the horizon² in the Cayman Islands. The Act seeks to provide welcome clarity and new opportunities for both potential litigants and litigation funders analysing their respective positions in this jurisdiction.

As matters currently stand, the law in this jurisdiction is governed by the common law and is seen to be unclear, making it desirable for a party to obtain sanction of the Grand Court to enter into funding arrangements to avoid falling foul of the “antique laws” of champerty and maintenance³.  The Act seeks to modernise and codify the litigation funding process to reflect changes already enacted in the United Kingdom, United States and other onshore jurisdictions.

 

To continue reading full articles in PDF format:
Private Funding of Legal Services Act 2020: Codification and Clarity in Cayman

 

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¹ https://www.conyers.com/publications/view/application-granted-for-sanction-to-enter-into-a-litigation-funding-agreement/

https://www.conyers.com/publications/view/the-cayman-islands-welcomes-third-party-litigation-funders/

https://www.conyers.com/publications/view/the-changing-landscape-of-litigation-funding-in-the-cayman-islands/

https://www.conyers.com/publications/view/non-party-cost-orders-an-inevitable-consequence-of-funding-litigation/

² The Act was gazetted on 7 January 2021 but is not yet in force.

³ This practice has however been criticized by the Grand Court.