A recent decision of the Grand Court has opened the door to litigation funding in the Cayman Islands, which is now poised to be among the first offshore jurisdictions to welcome the industry and benefit from the opportunities it presents.
During a recent visit to the STEP Cayman Conference, Managing Director, Paul Martenstyn, spoke to Sebastian Said, Partner at Appleby in the Cayman Islands to find out more about the development of third party funding in the jurisdiction and the other factors affecting commercial litigation in the offshore world.
Paul Martenstyn (PM): How has your career at the Bar prepared you for offshore legal practice? Have secondments from your former set helped this process?
Sebastian Said (SS): Practising at the Commercial Bar, in particular at Fountain Court, meant that from the get-go I was fortunate to work as a junior barrister on large-scale, significant, financial services litigation and trials. That has now proved to be invaluable experience given the nature of our practice here in Cayman. Practising at the Commercial Bar quickly builds an awareness of the importance of the commercial drivers and setting in which the litigation or dispute on which you are instructed is taking place. It has also helped me confidently provide advocacy services to clients where that is required, as well as instilling an ability to work extremely hard when required, and to focus on delivering results under considerable time pressure. The one area the Bar obviously cannot prepare you for is the day-to-day conduct of a file, and the greater level of direct client contact. I have had to focus on developing those aspects of practice in particular since I left the Bar, in order to work most effectively in a fused-profession here in Cayman. Thankfully, I have had great guidance, examples to follow and mentors here at Appleby who have helped me develop those critical offshore legal skills during my time with the Firm. What that process has helped me understand is (1) how important being commercial with legal services is, and (2) how much more rewarding it can be to manage a dispute from start to finish for a client - I've found you get a greater sense of your services being of real benefit. As for secondments from Fountain Court, I was fortunate to get the chance to undertake a series of them in the Channel slands before I moved into offshore practice full-time; this helped hugely with the initial transition to offshore practice. I was far more directly exposed to it - and saw more of what it actually entailed day to day - than I would have been had I merely worked on offshore cases in my room in Chambers. I would also say that working in a number of different Appleby offices has also been extremely helpful to the process of developing good experience, and a sense of offshore legal practice as a whole; as well as developing a good network of contacts in our key jurisdictions. As 'offshore' has matured into a global market (rather than remaining a disparate collection of hermetically sealed jurisdictions) experience and awareness of practice in other offshore jurisdictions has become increasingly valuable in providing the best service for our clients - who themselves invariably also operate across multiple offshore jurisdictions.
PM: How important is it to maintain a good team ethos both with US and UK law firms, and with local and UK counsel?
SS: US and UK law firms are some of our major referrers of work, so building and maintaining good relationships (both when we're working together, and when we're not), is a major part of practice here in Cayman and offshore generally. The major pieces of offshore litigation in which we act are so often one piece of a wider litigation strategy executed across multiple jurisdictions that the proper co-ordination of all efforts is critical. In my experience, the best way to build and maintain that is by quickly developing a team ethic across all the firms and counsel acting as part of that strategy. That often involves making a concerted effort to get to know all of the individuals working on the wider matter - I try to ensure we speak regularly on calls in the early stages to build a good level of contact and trust, rather than only communicating by formal lawyerly e-mails (which from my perspective can often have the reverse effect). Having good pre-existing relationships with particular local and UK counsel is extremely helpful as it means we can put an effective wider team together quickly, with trust and a good team ethic in place from the outset. Anyone involved in litigation knows that in the heat of battle you need everyone pulling in the same direction, often at times of very intense pressure. That's when the time spent building those connections, and that trust, pays dividends if it has been done properly. It's no exaggeration to say that, all else being equal, the team that's done the best job of this generally wins - it's that important. We've found that making a point of having team and client socials as a phase of work on a case has been completed helps maintain the right kind of team ethic, in particular in the largest pieces of litigation continuing over many years where the team has to keep re-forming to continue to deliver for the client over an extended period of time. Luckily, we're very well placed here in Cayman to have opportunities for some quality down-time with our teams once a phase of work is over (boat trips on the North Sound, or getting everyone out to one of the many great restaurants we're fortunate to have right on our doorstep). When we're on-shore we try to make a point of touching base with former or current members of our wider network and teams to help maintain these valued relationships so that we keep delivering on current matters, or we're ready to hit the ground running together on anything new on which we're instructed.
strong>PM: What positives do you see in the way CI courts are managing and judging significant commercial litigation?
SS: The Financial Services Division of the Grand Court in Cayman has, in particular post the AHAB v. Saad litigation, proven itself capable of dealing with trials of the largest, most significant commercial and financial disputes. The Court's management and resolution of those proceedings was a great advertisement for the jurisdiction, and much of the credit for that is due to the Chief Justice.
There is a real commitment on the part of the Judges and the profession to working to continue to develop Cayman as a jurisdiction that can be trusted with the most significant commercial litigation - one example of that is the lecture, organised by the Chief Justice, by LCJ Thomas on the historical development of the Commercial Court in London in order to draw parallels with the FSD's development in Cayman (highlighting the importance of having an active and respected users' committee which feeds back areas for improvement to the Court itself, something which is in place in Cayman in respect of the FSD). The FSD has a settled bench of respected and long-standing Judges, to which have been added some impressive relatively new recruits - Justices Segal and Parker (both former Freshfields' partners) as well as Justice Kawaley, the former Chief Justice of Bermuda.
In addition to this judicial depth at first instance, when you review the names of the current Judges of the Cayman Islands Court of Appeal (Goldring, Birt, Beatson, Field, Martin, Moses, Newman and Rix), it is clear that the Cayman Courts have a quality of judicial experience which is virtually unparalleled in the major offshore jurisdictions.
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