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Bahamas Supreme Court Upholds Trust Arbitration
Bahamas Supreme Court Upholds Trust Arbitration
Introduction:
The recent consolidated judgment by the Supreme Court of the Commonwealth of the Bahamas in the case of Gabriele Volpi v. Delanson Services Limited & Ors and Delanson Services Limited v. Matteo Volpi & Ors highlights the Bahamas' emergence as a prominent destination for trust arbitration. The decision resolves a longstanding dispute between Italian-Nigerian billionaire Gabriele Volpi and his son Matteo Volpi, shedding light on crucial aspects of trust arbitration within the Caribbean jurisdiction.
Background: The Trust Dispute
Between 2006 and 2012, Gabriele Volpi settled three family trusts, holding significant investments worth billions of US dollars. The trusts included Gabriele and his relatives, notably his son Matteo until their relationship soured in 2015. Matteo challenged the distribution of the trusts by Delanson Services Limited, the trustee, citing a breach of trust and improper purpose. The dispute was taken to an arbitral tribunal, leading to partial and additional partial awards that favoured Matteo's position.
Trust Disputes in Bahamas: Arbitrability Affirmed
The Bahamas stands out among jurisdictions explicitly allowing arbitration of trust disputes. The Trustees Act of the Bahamas permits arbitration agreements within trust instruments, demonstrating the jurisdiction's commitment to facilitating trust arbitration. Despite challenges to the tribunal's jurisdiction, notably Gabriele's claim of 'mistake' not being arbitrable, the Court upheld the arbitrability of trust disputes. It affirmed the legislative intent to create a permissive regime for trust arbitration, underscoring the Bahamas' policy as a favourable jurisdiction for resolving conflicts.
Scope of Appeals: Consent Requirement
One significant aspect of the judgment is the scope of appeals on points of law. While the Bahamas Arbitration Act mirrors the UK Arbitration Act, it notably lacks provisions for appeals on points of law without party consent. The Court's ruling clarified that appeals on points of law can only proceed with parties' explicit agreement, aligning with the 'leading provision doctrine' and emphasizing the importance of party consent in arbitration proceedings.
Bahamas as a Leading Arbitration Jurisdiction:
The judgment reaffirms the Bahamas' status as a key jurisdiction for trust arbitrations, highlighting its pro-arbitration stance and commitment to upholding awards with limited grounds for challenge. By closely mirroring the English Arbitration Act, the Bahamas Arbitration Act provides a familiar framework for international parties engaging in arbitration within the jurisdiction. This decision underscores the Bahamas' ambition to establish itself as a leading arbitration hub, particularly for trust disputes, within the Caribbean and beyond.
Conclusion:
The recent judgment by the Supreme Court of the Commonwealth of the Bahamas in the Volpi v. Delanson Services Limited case underscores the jurisdiction's commitment to trust arbitration. By affirming the arbitrability of trust disputes and clarifying the scope of appeals on points of law, the Bahamas solidifies its position as a premier destination for resolving trust disputes through arbitration. As the jurisdiction continues to refine its arbitration framework, international parties can increasingly rely on the Bahamas as a trusted forum for resolving complex trust matters.
- The Trustees Act of the Bahamas permits arbitration agreements within trust instruments, demonstrating the jurisdiction's commitment to facilitating trust arbitration.
- While the Bahamas Arbitration Act mirrors the UK Arbitration Act, it notably lacks provisions for appeals on points of law without party consent.
- This decision underscores the Bahamas' ambition to establish itself as a leading arbitration hub, particularly for trust disputes, within the Caribbean and beyond.
