Re Bernard Madoff Inv Secs

JurisdictionCayman Islands
CourtGrand Court (Cayman Islands)
Judge(Jones, J.)
Judgment Date05 February 2010
Date05 February 2010
Grand Court, Financial Services Division

(Jones, J.)

IN THE MATTER OF BERNARD L. MADOFF INVESTMENT SECURITIES LLC

Ms. S. White for the petitioner.

Legislation construed:

Companies Law (2009 Revision), s.241(1): The relevant terms of this sub-section are set out at para. 2.

Companies-liquidators-recognition of foreign liquidator-recognition under Companies Law (2009 Revision), s.241(1)(a) convenient way of establishing foreign liquidator”s sole right to act generally for foreign company in Cayman Islands, if validly appointed under law of place of company”s incorporation

The petitioner sought a declaration recognizing his right to act in the Cayman Islands on behalf of Bernard L. Madoff Investment Securities LLC (‘BLMIS’).

The petitioner was appointed trustee for the liquidation of BLMIS in a US bankruptcy court. He commenced proceedings against a Cayman company, and it was likely that he would wish to commence further proceedings against other Cayman entities.

The petitioner applied for a declaration under s.241(1)(a) of the Companies Law (2009 Revision) recognizing him as the sole person having the right to act on behalf of BLMIS in the Cayman Islands.

Held, granting the application:

The court would make the declaration sought under s.241(1)(a) of the Companies Law (2009 Revision). Given that the petitioner had already commenced proceedings against one Cayman entity and it was likely that more would follow, such a declaration would be appropriate since the purpose of the provision was to provide a foreign bankruptcy trustee or liquidator with a convenient way of establishing his right to act on behalf of a debtor universally...

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7 cases
4 firm's commentaries
  • In What Circumstances Can U.S. And Other Foreign Judgments Be Enforced Against
    • Cayman Islands
    • Mondaq Cayman Islands
    • 1 Noviembre 2012
    ...In the matter of Lancelot Investors Fund Limited [2009 CILR 7] Quin J. 30 In the matter of Bernard L. Madoff Investment Securities LLC [2010(1) CILR 231] Jones Previously published in The Hedge Fund Law Report, May 31, 2012. The content of this article is intended to provide a general guide......
  • In What Circumstances Can U.S. And Other Foreign Judgements Be Enforced Against Cayman Islands Hedge Funds?
    • Cayman Islands
    • Mondaq Cayman Islands
    • 5 Noviembre 2012
    ...In the matter of Lancelot Investors Fund Limited [2009 CILR 7] Quin J. In the matter of Bernard L. Madoff Investment Securities LLC [2010(1) CILR 231] Jones The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about you......
  • Cross Border Comity In The Cayman Islands: The Picard V Primeo Decision
    • Cayman Islands
    • Mondaq Cayman Islands
    • 24 Septiembre 2014
    ...of common law jurisdictions, see Government of India v Taylor [1955] 1 All ER 292. 4 Re Bernard L Madoff Investment Securities LLC [2010] 1 CILR 231. 5 Following the decision in Re Reserve International Liquidity Fund Ltd (in liquidation) (Grand Court, unrep. 1 April 2010) and the line of E......
  • Cross-Border Comity At The Court Of Appeal – The Picard V Primeo Decision
    • Cayman Islands
    • Mondaq Cayman Islands
    • 15 Mayo 2014
    ...Footnotes 1 Note that the Cayman Islands has not adopted the UNCITRAL Model Law. 2 Re Bernard L Madoff Investment Securities LLC [2010] 1 CILR 231. 3 We understand that the Privy Council has now heard the appeal, and that it has reserved its The content of this article is intended to provid......