I. INTRODUCTION: ARBITRATION IN THE CAYMAN

ISLANDS—HISTORY AND INFRASTRUCTURE

A. History and Current Legislation on Arbitration

1. Historical evolution of law relating to arbitration

With Grand Cayman, Cayman Brac and Little Cayman being a

total area of approximately 102 square miles,1 and a population of

55,5172 people, the Cayman Islands (the “Cayman”) is one of the

smallest countries in the Caribbean. However, it is presently one of

the top ten financial centres in the world. This is mainly because it is

a highly successful offshore financial centre, and is a British Overseas

Territory.3 Historically, the Cayman Islands have been a highly

litigious society, as alternative dispute resolution methods have not

been promoted. Although there is the option of referring some

disputes to alternative dispute resolution,4 litigation is still the main

dispute resolution method of choice. This was one of the main

reasons to update the arbitration laws. It was also recognised that

the local arbitration laws were not in line with international

standards. In 1974, the first arbitration law was enacted in the

Cayman Islands. The Arbitration Law, 1974 (the “1974 Law”) was

introduced as, according to its memorandum of objects and reasons,

there was no provision previously and the law would “save time and

money in the settlement of differences and also relieve the Grand

Court of some of its burden.”5

The 1974 Law was based considerably on...