STORY FROM: Reinsurance & Arbitration
Scottish Re Shareholder Not Required to Seek Leave of Court Before Filing Derivative Action, N.Y. High Court Rules
November 22, 2017
NEW YORK — A shareholder in a Cayman Islands reinsurer was not required to seek leave of court to file a derivative action under Rule 12A of the Grand Court of the Cayman Islands because that rule is procedural, and does not apply where a plaintiff seeks to litigate his derivative claims in New York, the New York Court of Appeal has held.
As such, the state high court reversed a Appellate Division ruling and remanded the action for consideration of whether the plaintiff has standing under Cayman substantive law.
Paul Davis owned shares in Scottish Re Group Ltd., ...
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