The tale of two representatives and two jurisdictions

Abstract

Abstract Firewall provisions have become a common feature of offshore jurisdictions since this type of legislation was first introduced by the Cayman Islands in 1987. In a world in which trustees of offshore trusts are increasingly likely to find themselves being joined to foreign proceedings, firewall provisions act as a mechanism through which offshore trusts can be protected from foreign judgments inconsistent with key aspects of the local law. Unlike legislation introduced in other jurisdictions, however, the Trusts Law (2021 Revision) does not include an express jurisdiction provision as part of its firewall provisions. The conventional view adopted by the Cayman Island courts had nonetheless been that exclusive jurisdiction in relation to particular matters was conferred on the Cayman Island courts by section 90 of the Trusts Law. In the recent Re Stingray Trust decision, the Grand Court of the Cayman Islands distinguished previous authorities and held that section 90 is limited to a governing law provision, thereby affirming the continuing importance establishing jurisdiction under common law rules.