The Office of the Ombudsman has ordered the Law Courts to release records on how legal aid funds were spent in relation to a specific court case, information that is typically not made public.
The individual had applied under the Freedom of Information Act to the Judicial Administration, now known as the Law Courts, for access to records relating to how much was paid or agreed to be paid to KSG Attorneys-at-Law in the case, and related correspondence between the director of legal aid and the law firm.
The Law Courts, the supervising authority for the Legal Aid Office, initially refused access to the records on the grounds of legal professional privilege, but later relied on commercial value and interest exemptions of the FOI Act, Ombudsman Sharon Roulstone noted in her hearing decision.
Delays in responses
In her ruling, Roulstone said the Judicial Administration’s repeated failures to respond within statutory deadlines significantly delayed the investigation.
“Records required for the Ombudsman’s review … were unnecessarily withheld for extended periods,” she stated, highlighting a pattern of non-responsiveness that required escalation to senior personnel and multiple extensions.
The Ombudsman also criticised the Judicial Administration’s inconsistent reliance on FOI exemptions and its lack of clarity and cooperation during the appeal process, saying, “responsiveness, adherence to timelines, cooperation and clarity are not discretionary; they are statutory obligations under the FOI Act”.
She ultimately found that it was not reasonably likely that the commercial interests of either the law firm or the Cayman Islands government would be harmed by disclosing the information. She also found that the Judicial Administration had not identified any trade secrets or information that possessed commercial value as defined under the FOI Act.
Public interest
The applicant had noted that legal aid is paid out of public funds, and therefore, there is a legitimate public interest in such expenditure – an argument with which the Ombudsman agreed. “Legal fees paid by government entities are generally considered financial and administrative records and are prima facie disclosable under the FOI Act,” Roulstone stated in her hearing decision.
However, she did find that certain sections of the records sought should be withheld from disclosure, “as they could relate to an actionable breach of confidence involving legal advice privilege”.
The Ombudsman ordered the Law Courts to disclose the records to the applicants within 20 days from the date of her decision, which was on 10 April 2026. The hearing decision was released publicly by the Ombudsman on 8 May.
James Kennedy, managing director of KSG Attorneys-at-Law, told the Compass that his firm had been engaged by the director of legal aid to assist in defending a claim made against her.
“We assisted the [Department of Legal Aid] at heavily discounted rates negotiated between the Director of Legal Aid and KSG and are content that the expenditure was proportionate and in fact very reasonable.”
Details of the court case in question were not outlined in the Ombudsman’s decision, but Kennedy said it related to the director of legal aid refusing to grant aid to an individual wishing to bring a claim against the Health Services Authority for failing to interview him for a role, although he had never lived or worked in Cayman.
The Compass has also reached out to the Law Courts for comment.
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