Arrest warrants stemming from Cayman lawsuit withdrawn

U.S. arrest warrants have been withdrawn against two men who were previously wanted there for filing a lawsuit in Cayman that violated a U.S. anti-lawsuit injunction.

The dispute stems from widespread damage caused to property in Liberia in the early-1990s Liberian civil war, leading to property holders filing a lawsuit in the U.S. against an insurance company that they alleged was not honoring their claims.

The property holders lost that case in 1995, and an anti-suit injunction was eventually filed in 2001 to prevent the property holders from suing in other jurisdictions. Nevertheless, a party that included British Virgin Islands attorney Martin Kenney and Irish businessman Garrett Kelleher initiated a lawsuit in Cayman in 2008 against the insurer, which was based in the Cayman Islands at the time.

In response, the insurer filed a motion for contempt of the injunction in 2015 against Mr. Kenney, Mr. Kelleher and another individual involved in the litigation, and in July 2016, the U.S. court issued a “memorandum opinion and order” in favor of the insurer.

After Messrs. Kenney and Kelleher did not attend a December 2016 court hearing to determine the amount of damages suffered by the insurer, a U.S. judge ordered U.S. Marshals to “take all necessary steps to effect the arrest and extradition” of the two men.

Some 18 months later, the U.S. judge dismissed the criminal contempt charge and arrest warrants. The dismissals were made so Messrs. Kenney and Kelleher can appear in court for a civil hearing related to the legal dispute, the judge wrote in his dismissal order, which is posted on the financial services website OffshoreAlert.

The hearing, scheduled for Aug. 8, relates to a motion Mr. Kelleher filed on April 27 to make two branches of the accounting firm Deloitte and several attorneys jointly liable for violating the anti-lawsuit injunction. He is also seeking documents from the original 1990s U.S. case to see if any other parties, including some attorneys in Cayman, should also be held liable.