Order Marks First Time the Grand Court of the Cayman Islands Has Interpreted Section 54 of Arbitration Act

On August 3, 2023, the Honorable Mr. Justice Segal of the Grand Court of the Cayman Islands (Cayman Court) delivered a judgment imposing an interim quia timet injunction order against Minsheng Vocational Education Company Limited (Minsheng), a wholly-owned subsidiary of the Hong Kong-listed Minsheng Education Group Company Limited (Minsheng Parent), restraining Minsheng from, inter alia, enforcing certain share charges over the 49 percent shares of Leed International Education Group, Inc. (Leed International), a Cayman subsidiary of Minsheng. According to the shareholder circular published by Minsheng Parent in relation to the acquisition of 51 percent of the issued share capital of Leed International, Leed International indirectly owns the sponsorship interests of Yunnan University Dianchi College.

This is believed to be the first judgment delivered by the Cayman Court interpreting Section 54 of Arbitration Act of the Cayman Islands on an application for interim relief in relation to foreign arbitration.

Wilson Sonsini collaborated with legal teams from Stephen Moverley Smith KC and Walkers to assist clients Leed Education Holding Limited, National Education Holding Limited, and Hyde Education Holding Limited in successfully obtaining the injunction against Minsheng through the Cayman proceedings.

The Wilson Sonsini team counseling on this matter and the ongoing related arbitrations in Hong Kong and Beijing is led by partners Weiheng Chen and Matthew Reed and includes senior counsel Draco Ng and associates Ava Shelby, Athena Yu, and Yang Liao.

For more information, please see the judgment.