Re Ansbacher (Cayman) Ltd

• Jurisdiction: Cayman Islands
• Judge: (Smellie, C.J.)
• Judgment Date: 25 June 2001
• Date: 25 June 2001
• Court: Grand Court (Cayman Islands)

Grand Court

(Smellie, C.J.)

IN THE MATTER OF ANSBACHER (CAYMAN) LIMITED

A.J. Jones for Ansbacher (Cayman) Ltd.;

R.D. Alberga, Q.C., B.L. Ashenheim, M. Todd, Q.C., P.S. Boni, C.J. Narborough and D.T.J. McCahill for the former clients of Ansbacher;

A. Bueno, Q.C. and H. Robinson for the inspectors appointed by the Irish High Court;

S. Hall-Jones, Senior Crown Counsel, for the Attorney General as amicus curiae.

Case cited:

(1) Pickwick Intl. Inc. (G.B.) Ltd. v. Multiple Sound Distribs. Ltd., [1972] 1 W.L.R. 1213n; [1972] 3 All E.R. 384, distinguished.

Legislation construed:

Confidential Relationships (Preservation) Law (1995 Revision) (Law 16 of 1976, revised 1995), s.3(2):

‘This Law has no application to the seeking, divulging or obtaining of confidential information-

. . .

(b) by or to-

. . .

(v) a bank in any proceedings, cause or matter when and to the extent to which it is reasonably necessary for the protection of the bank”s interest, either as against its customers or as against third parties in respect of transactions of the bank for, or with, its customer. . .’

s.4(1): ‘Whenever a person intends or is required to give in evidence in, or in connection with, any proceeding being tried, inquired into or

determined by any court, tribunal or other authority (whether within or without the Islands) any confidential information within the meaning of this Law, he shall before doing so apply for directions. . .’

Judicature Law (1995 Revision) (Law 11 of 1975, revised 1995), s.24(2):

‘. . . [T]he awarding of . . . costs and charges shall be in the discretion of the court which may, by its judgment, award them to the successful party in accordance with the prescribed scale.’

Confidential Relationships-application to court for directions-costs-no power to award costs of interested party opposing application under Confidential Relationships (Preservation) Law (1995 Revision), s.4-no ‘successful party,’ since proceedings ex parte and interests of administration of justice to prevail-exception if directions sought as ancillary application to Cayman action

Confidential Relationships-protection of bank”s interest-costs-may award interested party”s costs of successfully opposing application for declaration under Confidential Relationships (Preservation) Law (1995 Revision), s.3(2)(b)(v)

The applicant applied for directions under the Confidential Relationships (Preservation) Law.

The applicant, a Cayman bank, applied for directions permitting it to disclose information to inspectors appointed by the Irish High Court in the context of an inquiry into an alleged conspiracy to defraud the Irish Revenue. The inspectors were authorized to investigate the applicant”s business in Ireland and on behalf of Irish residents, and the applicant wished to co-operate in the interest of clearing its own name. It asserted initially that it had the right to do so for the protection of its own interest, and therefore, under s.3(2)(b)(v) of the Confidential Relationships (Preserva-tion) Law, permission was unnecessary, but subsequently withdrew...