Oct 2014
CAYMAN ISLANDS
COURT OF APPEAL
SECURITY FOR COSTS – INDEMNITY BOND – WHETHER INDEMNITY BOND PROVIDED REAL SECURITY
By way of summons the Plaintiff sought an order to retrospectively vary a Security Order (and subsequent unless order) so the Plaintiff would be allowed to provide security for costs by way of after-the event insurance and an unconditional and irrevocable bond in the sum of US$100,000 (the “Indemnity Bond”). The Plaintiff had obtained the Indemnity Bond from QBE Insurance (Europe) Limited, a London based international insurer and reinsurer.
In determining whether the Indemnity Bond was capable of discharging the security order, the Chief Justice applied the test in the English case of Versloot Dredging BV -v- HDI Gerling Industries Versicherung AG [2013] EWHC 658 (Comm) as stated by Justice Chrisopher Clarke: