Scottish Re Shareholder Not Required to Seek Leave of Court Before Filing Derivative Action, N.Y. High Court Rules

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., …