The Cayman Islands Court of Appeal (CICA) has delivered a significant blow to international litigation strategies in Re KES Power Limited (Al Jomaih Power Limited and Denham Investment Ltd v IGCF SPV 21 Limited) [2026] CICA (Civ) 9.
The CICA addressed whether a successful party, awarded costs to be taxed on the standard basis, could recover fees for work performed by foreign lawyers (such as London solicitors or junior counsel) before those individuals were formally granted temporary admission to the Cayman bar. A line of previous Grand Court decisions had assumed that the court maintained an inherent, flexible discretion to dispense with strict admission requirements under Grand Court Rules Order 62, rule 18.
The CICA decisively rejected this view, declaring those previous decisions bad law. The Court held that the Grand Court possesses no jurisdiction to dispense with the mandatory admission requirements when taxing standard costs.
- Key Takeaways for Practitioners:
- Rigid Litigation Budgeting: Any work undertaken by onshore counsel or advisors prior to the exact date of their temporary Cayman admission is entirely unrecoverable from the losing party on a standard basis.
- Indemnity Costs Distinction: This restriction applies strictly to standard costs orders; where a court awards indemnity costs (often in cases involving proven fraud or egregious misconduct), the Grand Court Rules do not apply, and foreign fees may still be recoverable.
- Sources: Access the full breakdown of the procedural trap via Bedell Cristin's Cayman Court Costs Briefing.
Cayman Islands: Court of Appeal Barricades Recovery of Unadmitted Foreign Lawyers' Fees