Bahamas updates

Arbitration & ADR

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
  • Bahamas
  • 05 September 2019

The Supreme Court recently clarified its jurisdictional limits to assist in trust-related arbitrations, ruling that it has no such jurisdiction to allow service outside an action's jurisdiction. Given this ruling, parties to trust arbitration agreements must be cognisant that, notwithstanding whether their trust deeds provide for the seat of any arbitration to be The Bahamas, the court can provide only limited assistance where the arbitration is not held and the parties or assets are not in The Bahamas.


Aviation

Contributed by Klonaris & Co
COVID-19: aviation industry in eclipse?
  • Bahamas
  • 22 April 2020

The COVID-19 pandemic has turned the global aviation industry on its head with operations slowly grinding to a complete halt. At present, no international or domestic flights are permitted to operate to, from or within The Bahamas with the exception of those authorised by The Bahamas Civil Aviation Authority to conduct cargo or emergency relief flights.

Aviation 2019: a year in review
  • Bahamas
  • 25 March 2020

There was much progress in The Bahamas' aviation sector in 2019; in particular, the completion of the runway rehabilitation project at the country's gateway airport and the aircraft registry project. Unfortunately, there were also a few setbacks. This article provides an overview of the main issues that affected the aviation sector in The Bahamas over the past 12 months.

Gateway to The Bahamas: runway rehabilitation project
  • Bahamas
  • 16 October 2019

In recent years, there has been significant growth in air traffic to and from The Bahamas. As a result, the government has taken proactive steps to support this growth – notably, with upgrades to several of the country's busiest airports. For example, the Nassau Airport Development Company recently commenced a major rehabilitation project at the Lynden Pindling International Airport. This project will, among other things, include an asphalt upgrade to increase the runway's lifespan.

Government reopens negotiations on overflight fees and airspace management
  • Bahamas
  • 19 June 2019

The Bahamas' flight information region airspace comprises tens of thousands of miles and is subject to significant overflight activity. Moreover, it is one of the most important airspaces and is worth millions in revenue. To further enhance the civil aviation sector, the government is seeking to create a self-funded and sustainable management programme in order to collect overflight fees, while paying the US Federal Aviation Administration a fee for the management of its airspace.

Great strides made towards enhancing aircraft registry and ratifying Cape Town Convention
  • Bahamas
  • 27 March 2019

The Bahamian government continues to make progress towards enhancing its aircraft registry and ratifying the Cape Town Convention. For example, the Aviation Steering Committee (ASC) recently presented draft legislation to implement the Cape Town Convention to the Attorney General's Office. The ASC expects this draft legislation to be approved and presented to the Cabinet before the next government budget communication in Summer 2019.


Employment & Immigration

COVID-19: lay-offs, short time and redundancies – what you need to know
Lennox Paton
  • Bahamas
  • 15 April 2020

In times of crisis such as the current COVID-19 pandemic, employers and employees alike need to be aware of their rights and obligations. Employers should ensure that lay-off or short-time actions are taken with due consideration and in accordance with the Employment Act. Employees should be prepared for the possibility of being laid off or put on short time and, understanding their options under the law, work with their employer to produce the best outcome for both parties.


Insolvency & Restructuring

Privy Council determines extraterritorial reach of clawback claims in insolvency proceedings
Lennox Paton
  • Bahamas
  • 23 August 2019

The Privy Council has determined that, notwithstanding the absence of express statutory provisions permitting service out of the jurisdiction of fraudulent preference claims, such claims are to have extraterritorial effect. This decision clarifies the law as it relates to the extraterritorial effect of fraudulent preference claims; however, it also creates difficulties for subscribers to mutual funds that may be held liable for investments made on behalf of third-party beneficiaries that are the ultimate recipients of payments.


Litigation

At a glance: COVID-19 court protocols
Lennox Paton
  • Bahamas
  • 19 May 2020

COVID-19 has forced society to embrace all things technological and forced individuals to adapt to working remotely. As it stands, court operations before the Magistrates Court and the Supreme Court are restricted to essential services until the first working day after the expiry of the Emergency Powers (COVID-19) (No 2) Order 2020, which may be extended by amendments. This article sets out what is permitted according to the judiciary's latest Mitigation Protocols concerning civil and commercial matters.

Supreme Court identifies its jurisdictional limits to assist in trust arbitration proceedings
  • Bahamas
  • 03 September 2019

The Supreme Court recently clarified its jurisdictional limits to assist in trust-related arbitrations, ruling that it has no such jurisdiction to allow service outside an action's jurisdiction. Given this ruling, parties to trust arbitration agreements must be cognisant that, notwithstanding whether their trust deeds provide for the seat of any arbitration to be The Bahamas, the court can provide only limited assistance where the arbitration is not held and the parties or assets are not in The Bahamas.

Supreme Court evaluates scope of trustees' protection in contentious trust litigation
Lennox Paton
  • Bahamas
  • 07 August 2018

The Supreme Court recently assessed the protection afforded to trustees by virtue of Section 83 of the Trustee Act 1998, which provides that a trustee cannot be bound or compelled by way of discovery to disclose information and documents about a trust. In Dawson-Damer, a trustee had used Section 83(8) as a basis to refuse a disclosure request. The applicant's case was built primarily on the allegation of a breach of duty (ie, the trustee had failed to consider the applicant's needs).