The Grand Court of the Cayman Islands has made a ground-breaking decision to order a free standing Mareva injunction, an order never before granted in the Cayman Islands.

Named after a 1975 case in the UK  'Mareva Compania Naviera S.A. v International Bulk Carriers S.A. – a Mareva injunction is a court order preventing the defendant to a law suit from transferring assets until the outcome of  the law suit  is decided to ensure that the defendant’s assets are not dissipated in order to avoid satisfying a judgment.

The Grand Court decision means that the Court has held that it has power to grant asset-freezing injunctions over Cayman assets in support of foreign proceedings, where the only relief claimed in the Cayman Islands Court is the asset-freezing injunction itself, and there is no other cause of action  against the defendant within the jurisdiction of the Cayman Islands courts, other than the freezing order relief sought.

 “This case follows a modernising trend, which is to be greatly welcomed, and is a significant contribution to cross-border co-operation and protection,” said Ogier Cayman Partner and Head of Litigation Chris Russell, who together with Rachael Reynolds, Managing Associate, and Will Jones, Associate, acted for the successful applicant for the injunction.

A written judgment is expected shortly.