NEW ARTICLE – ALTERNATIVE DISPUTE RESOLUTION – ARE PRIVATE FDR’s THE ANSWER FOR DIVORCE CASES IN THE CAYMAN ISLANDS? 8 SIMPLE QUESTIONS (AND ANSWERS)
New Article – Alternative Dispute Resolution – Are private FDR’s the answer for divorce cases in the Cayman Islands?
In a new article, GARETH JACQUES, our new specialist family law Attorney, considers whether the introduction of private FDR’s could herald a new dawn for ADR in the Family Law sphere in the Cayman Islands. Gareth asks 8 simple questions and provides the answers to those considering settling their dispute without the need for the court.
Alternative Dispute Resolution – Are private FDR’s the answer for divorce cases in the Cayman Islands?
8 Simple Questions (and Answers)
In her opening remarks at the start of the legal year in the Cayman Islands, the Honorable Chief Justice made clear that one of the Judiciary’s strategic priorities for the forthcoming year is to promote alternative dispute resolution (“ADR”) in the family law sphere 1. As matters stand, the courts in the Cayman Islands are unable to make provision for the holding of Financial Dispute Resolution Hearings (“FDR”) which are a common feature of ancillary relief cases conducted in England and Wales. This, as the Honorable Mr Justice Williams made clear to those practicing family law, in his remarks to the Family Court User Group Meeting in January 2025, inter alia, due to capacity concerns for specialist family law judges, particularly where a judge involved in FDR would likely be precluded from then presiding over any final hearing. This brief article will highlight how a private FDR may fill that void and why entering into alternative dispute resolution can be very beneficial to clients.
Question 1 – What is an FDR?
An FDR is a without prejudice settlement meeting aimed at encouraging the parties to reach a financial settlement in their ancillary relief case. In England and Wales, an FDR takes place before a judge sitting at Court, who hears legal submissions from the attorneys in the case, before giving their own view (commonly called their indication) as to what they believe a fair outcome of the case will be. This will include guidance on what assets are to be considered matrimonial or non-matrimonial, how much capital each party should receive and how much spousal support there should be. The parties then stay at court and a negotiated settlement is attempted. A majority of cases settle at the FDR hearing, with very few progressing to a costly final hearing.
Question 2 – Do FDR’s happen in the Cayman Islands?
The short answer is not at the minute. The court process currently does not have built into it, an FDR hearing. Ordinarily the parties will attend court for a First Appearance (to obtain directions in their case) before then attending mediation with a court appointed Mediator. In 2024, 94 family matters successfully settled at mediation, whilst 58 were unable to reach agreement.2 If mediation fails, the case will typically return to court for a mention before being listed for a final hearing.
However, just because there is currently no court based FDR in the Cayman Islands, does not mean that parties cannot agree to hold a private FDR to attempt to resolve their case and there have been a number of private FDR’s undertaken involving Cayman Islands divorce cases.
Question 3 – What is a Private FDR?
A private FDR is akin to an FDR hearing, the difference being that it takes place outside the court forum and is privately funded. The format of the hearing is the same, however, the parties agree a neutral evaluator to act as the “judge” to conduct the private FDR. This evaluator is usually a specialist counsel or attorney with significant experience in ancillary relief matters. The private FDR then takes place on a date and at a time convenient to the parties. The identity of the evaluator is left to the parties to agree, and the parties can agree how they will pay the costs, either to split them or more commonly, the financially wealthier party will meet the costs in the first instance.
On the day of the private FDR, the parties will attend at the agreed venue and their attorneys will make submissions on their behalf to the private FDR evaluator. The evaluator will then give their indication as to an appropriate settlement and the parties then try and negotiate a resolution of their case. In England and Wales settlement rates for private FDR’s run at approximately 95%. If the parties reach agreement, a Consent Order can be filed and if the parties cannot reach agreement, then the matter returns to court to be timetabled to a final hearing.
Question 4 – Where did the Private FDR start?
Sir James Munby, ex-President of the Family Division in England and Wales, endorsed the use of Private FDR’s in his last keynote address as President in July 20183:
“I hope that the lead and other judges will take the opportunity to develop and encourage the use of “private” FDRs locally. A private FDR is a simple concept. The parties pay for a financial remedy specialist to act as a private FDR judge. That person may be a solicitor, barrister or retired judge. No additional qualification is required. The private FDR takes place at a time convenient to the parties, usually in solicitors’ offices or barristers’ chambers, and a full day is normally set aside to maximise the prospects of settlement. It takes the place of the in-court FDR.
Although a private FDR does require some (often quite modest) investment by the parties,
this expense can be greatly outweighed by the advantages gained. The very fact of investment by the parties will signify a voluntary seat at the negotiating table rather than a sense of being dragged there. The “hearing” can take place at a time convenient to the parties, even in the evening or at a weekend, and for as long as the parties want. The private FDR judge will, by definition, have been given all the time needed to prepare fully for the hearing. Anecdotal evidence suggests that private FDRs have a very high settlement rate.”
Following on from Sir James Munby’s speech, the use of Private FDR’s has been encouraged by the courts on a number of occasions including by the leading ancillary relief judges in England, Mr Justice Peel4 and the now retired Mr Justice Mostyn5. With more cases coming before the courts in the Cayman Islands, the move towards ADR is inevitable.
Question 5 – What are the advantages of a Private FDR for me?
There are a number of advantages of the parties engaging in a private FDR to settle their ancillary relief case:
Speed
The process is very flexible, and arrangements can be made very quickly for the parties to attend a private FDR. There is no need to wait for court listing dates.
Cost
With a high success rate, cases settle earlier on in proceedings, saving you money. Even if the case does not settle, issues in the case can be narrowed significantly leading to less money being spent at a final hearing.
Flexibility
You can choose the time and the venue of the private FDR.
You can also hold a private FDR at any point, even before proceedings have started, so long as the asset base is clear and known to the parties.
Confidentiality
Private FDR’s are completely confidential. With a high success rate, attending at a private FDR seeks to alleviate the risk of having to attend a final hearing, the judgment from which may well be made publicly available.
Choice
The parties, guided by their attorneys get to agree on the evaluator to conduct the private FDR.
Control
The process is more bespoke than the court process and can be tailored to your needs.
Question 6 – Is my case suitable for a Private FDR?
Nearly every case is suitable for a private FDR, from cases involving high net worth individuals to cases with more modest assets.
If you want a quick, cost effective way of resolving your divorce case, then a private FDR could be for you.
Question 7 – How can Priestleys help me?
At Priestleys we know and understand how private FDR’s can help you.
We have extensive experience in representing clients at private FDR’s and in conducting private FDR’s. Gareth Jacques, our specialist family law counsel and Arbitrator, has sat as a private FDR “judge” on a large number of cases, all of which have, to date settled.
We can advise you on how a private FDR could work in your case, provide you a quote for the private FDR and we can take care of all of the arrangements for arranging the same whilst working with the other sides attorneys. We are committed to being approachable, proactive and transparent in every single matter that we deal with and believe this approach sets us aside from other firms.
Question 8 – How do I find out more?
If you require any assistance or advice in relation to any aspect of a Private FDR, do not hesitate to contact the family team at Priestleys on info@priestleys.ky and we will be happy to assist you.
The author
Gareth is a specialist family law attorney and heads up the family law department at Priestleys in the Cayman Islands. Gareth joined Priestleys in January 2025 having previously being Head of Chambers at the leading specialist family law chambers outside of London. Gareth was called to the Bar of England and Wales in 2007 (now non practicing) and to the Bar of the Cayman Islands in January 2025.
Gareth has been consistently ranked as a leading family lawyer by the Chambers and Partners and Legal 500 directories, which describe Gareth as “exceptional, approachable and extremely knowledgeable” and a “brilliant advocate.”
Gareth has been a Family Law Arbitrator since 2021, has conducted numerous Private FDR’s and was appointed by His Majesty the King to sit as a part time Judge in 2024.
References
2. https://judicial.ky/wp-content/uploads/publications/speeches/HON.-CHIEF-JUSTICE-2025-SPEECH-AT-THE-OPENING-OF-THE-LEGAL-YEAR-2025-GRAND-COURT-OPENING.pdf – pages 7 and 8
3. https://www.judiciary.uk/wp-content/uploads/2018/07/pfd-circular-pilot-phase2.pdf
4. AS v CS (Private FDR) [2021] EWFC 34
A copy of the full article can be downloaded below:
https://priestleys.ky/wp-content/uploads/2025/02/Alternative-Dispute-Resolution-–-Are-private-FDRs-the-answer-for-divorce-cases-in-the-Cayman-Islands.pdf
