The Cayman Islands adopted modern arbitration statute based on UNCITRAL Model Law on International Arbitration 1985 (as amended in 2006) and the English Arbitration Act 1996 when it enacted the Arbitration Law 2012. The Arbitration Law is based on the following principles:
The object of arbitration is to obtain the fair resolution of disputes by an impartial tribunal without undue delay or expense.
The parties should be free to agree how their disputes are resolved, subject only to safeguards necessary in the public interest.
The court should not intervene in the arbitral process except as specifically provided in the Arbitration Law.
There is a strong history of enforcement proceedings in relation to foreign awards and the Cayman Islands is an attractive location due to the relative ease and speed of obtaining enforcement of a foreign award. Recent court decisions have reinforced this as well as shown a trend towards broadening the types of disputes which are capable of settlement by arbitration.