Bahamas Court of Appeal rejects applications for leave to appeal with significant implications for arbitration in trust disputes.
Following our success before the Bahamian Supreme Court, we have succeeded again in the long running Volpi v Volpi trust arbitration before the Bahamas Court of Appeal on behalf of our client Matteo Volpi (Matteo).
On 21 March 2024, the Court of Appeal held that it had no jurisdiction to hear Gabriele Volpi and Delanson's applications for leave to appeal in circumstances where leave to appeal had already been rejected by the Supreme Court of the Bahamas.
The Court of Appeal concluded that it was “settled law” that unless a judge of the Supreme Court grants leave, the Court of Appeal has no jurisdiction to hear an appeal from a judgment of the Supreme Court. The fact that this was in the context of a trusts case did not change that.
It also found that it was settled law that the Court of Appeal itself does not have the power to grant leave to appeal against such judgments.
Delanson, the trustee also attempted to argue that they had an appeal “as of right” on the basis that the Court of Appeal would always have a supervisory jurisdiction which could be exercised in trust cases. That argument was found by the court to be "unsustainable" as the court was clear that the guiding principle of the Arbitration Act was ‘to reduce drastically the extent of intervention of courts in the arbitral process' and the ability to appeal to the Court of Appeal has nothing to do with the supervisory jurisdiction over trusts.
The Court noted that the parties had exercised their right to have their dispute resolved by Arbitration. The role of the court and the right of appeal to the Court of Appeal is therefore restricted by the Arbitration Act.
Partner and Head of Taylor Wessing's Contentious Trusts team in the UK, Emma Jordan said: "This is a very robust decision by the Bahamas Court of Appeal which is a leading authority in the application of the Bahamas Arbitration Act in trust cases. The decision will have ongoing significant implications for the governance and application of arbitration in trust disputes. It further strengthens the limitations of the appeal route in the Bahamas and will mean that it is a leading jurisdiction for trust arbitration in the future."
The team was led by Partner Emma Jordan with support from senior associates George Porter and Robert Gibson and associate Isabelle Moisy from the Private Client team.
