Bermuda: A Dispute Resolution Overview
Bermuda continues to be an established offshore disputes jurisdiction, supported by a specialist commercial court and the increasing use of arbitration to resolve complex commercial and private wealth disputes. Recent jurisprudence and market activity reflect a mature disputes environment, with high-value insolvency, trusts, regulatory and shareholder matters often spanning multiple jurisdictions.
Economic Context
Bermuda’s economy is experiencing sustained post-pandemic economic growth, underpinned by its internationally focused insurance, reinsurance, investment fund and corporate services sectors. Consumer spending and investment have increased, as has employment income across key sectors. Meanwhile, Bermuda continues to face labour-force challenges due to an ageing population and relatively low growth in the Bermudian workforce.
Despite relative macroeconomic stability, Bermuda’s position as a small, open economy leaves it vulnerable to global financial and regulatory developments. Evolving regulatory expectations, complex cross-border structures, and the concentration of high-value international transactions continue to shape the commercial environment.
Restructuring and Insolvency
While there is no information publicly available on companies restructuring their debts or defaulting, Bermuda typically sees between 15 and 30 winding-up petitions per year, of which, around a third convert into an order for the winding-up of the company or the appointment of joint provisional liquidators.
However, there has been an increasing number of petitions presented by the Bermuda Monetary Authority (BMA) as a method of compelling or persuading market participants to comply with relevant laws and regulations, enhancing Bermuda’s reputation as a well-regulated financial jurisdiction. Other trends recently seen include:
- perception of a “first-mover” advantage, ie, a creditor initiating a petition with the intention of having more control over the timing of the insolvency process compared to other creditors; and
- a rise in insolvency and restructuring issues involving segregated accounts companies.
Considering Bermuda’s well-established position as an international financial centre and the increase in debt restructuring activity, it is anticipated that Bermuda will continue to be an active jurisdiction for rescue, restructuring and insolvency proceedings.
Shareholder Appraisal Claims
These claims have continued to play an important part in Bermuda’s legislation landscape, as evidenced by the following landmark cases decided in 2025.
In Jardine Strategic Ltd v Oasis Investments II Master Fund & Others the Judicial Committee of the Privy Council (JCPC) handed down two decisions arising out of a high-profile amalgamation. In the first, the JCPC confirmed that shareholders who acquire shares after notice of an amalgamation may nonetheless invoke statutory appraisal rights under Section 106 of the Bermuda Companies Act 1981, provided they are registered at the time of the approving meeting. In the second, the JCPC abolished the long-standing “Shareholder Rule”, holding that companies are entitled to assert legal advice privilege against their own shareholders in contentious proceedings.
In Glendina Pty Limited et al v NKWE Platinum Ltd the Bermuda Supreme Court delivered a detailed valuation judgment arising out of the compulsory acquisition of minority shares in a Bermuda-incorporated mining company. In doing so, it determined a higher fair value than the transaction price and addressed key issues, including the proper approach to valuation, the treatment of minority interests, the role and duties of independent directors in the appraisal process, and the appropriate basis for awarding interest. The decision provides authoritative guidance on fair value determinations and appraisal claims in Bermuda.
Contentious Trusts
In 2025, there was a steady stream of court applications seeking to restructure Bermuda trusts, many of which have utilised Section 47 of the Trustee Act 1975, which permits amendment of administrative provisions and variation of beneficial interests where the relevant transactions are expedient for the trust as a whole, notwithstanding the absence of an express power to enter into the transactions.
Two significant Bermuda trusts have been before the courts in 2025. The “X Trusts” case was before the JCPC in November 2025 to determine the extent and limits of the role of protectors in trusts. The case of Wong v Grand View Private Trust Company Ltd and Others was before the Bermuda Court of Appeal to determine how mixed-purpose trusts (charitable and non-charitable combinations) should be treated. Judgment is awaited in both cases.
Generally speaking, the offshore trust services market is projected to grow from USD4.4 billion in 2025 to USD8.1 billion by 2033, reflecting rising demand alongside increasing complexity in trust structuring and disputes. These dynamics are set to play an increasingly central role in offshore trust and dispute resolution matters.
Employment and Immigration
Bermuda’s Employment and Labour Relations Tribunal, supported by the courts, remains central to resolving workplace disputes and enforcing employment rights by addressing the importance of genuine consultation in redundancy processes, procedural fairness, and adherence to internal policies. The courts have recently held that both injunctive relief in employment disputes, and the enforcement of tribunal awards against anyone other than the employing entity are exceptional remedies.
Immigration activity in 2026 is bound to be shaped by the introduction of Bermuda’s new Work Permit Policy, which came into effect on 1 November 2025 and represents the first significant update to the existing regime in over ten years. The revised policy introduced clearer eligibility criteria, expanded documentation requirements (including police certificates and language standards), introduced new permit categories, and tightened compliance and administrative processes. These changes will likely increase the need for strategic legal advice and risk management in order to avoid permit denials and consequent administrative challenges, appeals and judicial review proceedings.
Regulatory Environment
Regulatory activity in Bermuda remains robust, with continued emphasis on supervision, enforcement, and cross-border co-operation across the financial services sector. The BMA continues to play a central role in investigation and enforcement actions, particularly in relation to insurance and reinsurance, investment funds, digital asset businesses, and corporate governance compliance.
Recent legislative developments have reinforced this regulatory focus, with amendments to financial services legislation, including enhancements to the digital asset, insurance and anti-money laundering and counter-terrorism financing (AML/CTF) frameworks, expanding supervisory powers and clarifying compliance expectations. These reforms have increased regulatory scrutiny and given rise to disputes concerning licensing decisions, supervisory investigations, and enforcement outcomes.
International standards continue to influence the domestic enforcement priorities. Ongoing engagement with the Financial Action Task Force (FATF) has placed sustained emphasis on AML/CTF effectiveness, beneficial ownership transparency, and demonstrable enforcement outcomes, increasing the likelihood of regulatory investigations giving rise to follow-on litigation.
Legislative Developments
Legislative developments in 2025 continued to shape Bermuda’s dispute resolution landscape. Ongoing enhancements to Bermuda’s beneficial ownership regime have increased transparency and reporting obligations for corporate entities, with potential implications for disputes involving regulatory enforcement, governance and compliance failures. The full implementation of the Personal Information Protection Act 2016 introduced comprehensive obligations around the handling of personal data, increasing regulatory exposure for employers, fiduciaries and international businesses, possibly leading to compliance disputes and regulatory investigations.
In the trusts field, it remains to be seen to what extent trustee decision-making will be open to challenge following the key amendments to the Trustee Act 1975 to explicitly allow trustees to take ethical investing considerations into account when exercising their investment powers. Further, the Trustee Amendment Act 2025 provides important benefits for aligning trust administration with family legacy and succession planning, which may also lead to applications challenging trustee powers, and disputes about how these new statutory powers should be interpreted.
First Published in Chambers and Partners.
