This information is derived from the State Department's Office of Investment Affairs' 2015 Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov

Legal System, Specialized Courts, Judicial Independence, Judgments of Foreign Courts
Bermuda’s legal system is based on English statutory and common law and principles of equity. The system is generally effective at enforcing property, commercial and contractual rights.

There is no government interference in the court system.  Three courts preside in Bermuda; the Magistrates Courts, the Supreme Court, and the Court of Appeal.  The Commercial Court, a division of the Supreme Court, in effect since January 2006, was established to provide a forum in which commercial litigation is tried expeditiously by an experienced commercial judge in accordance with the best modern practice.  The court of last resort is London's Privy Council.

Foreign money judgments can be enforced under Bermudian statutory law.  Under the 1958 Judgments Reciprocal Enforcement Act (JRE), local courts must recognize and enforce foreign judgments.  The JRE follows the same procedure as the UK Foreign Judgments (Reciprocal Enforcement) Act of 1933. Bermuda also has arbitration legislation.

Bankruptcy
The Bankruptcy Act 1989, the Companies Act 1981, and the Companies (Winding Up) Rules 1982 govern bankruptcy and the winding-up of companies.  The Supreme Court (the first instance court of general jurisdiction) administers the bankruptcy process.  A foreign creditor may apply for the bankruptcy of an individual or for the winding-up of a company provided the creditor follows the procedures set out in the aforementioned statutes.

Investment Disputes 
A Bermuda-owned and registered company is pursuing arbitration and related legal proceedings after the tender awarding it development rights for the Hamilton waterfront was revoked. The Bermuda Ombudsman had opined that the tender process awarding those rights was deeply flawed and the GOB subsequently enacted legislation nullifying the development agreement for the project. The case is now in arbitration and related legal proceedings are ongoing regarding compensation payable to the company.  No U.S. company or entity is involved in this litigation. 

In another case involving the Corporation of Hamilton, a 2014 credit default by a Bermudan company planning a hotel project in the locality led its U.S. creditor to seek damages.  An initial judgment in the creditor’s favor was issued in 2015, and this legal process is also ongoing.   

International Arbitration
The growth in commercial arbitration is directly linked to the presence of international companies, which operate primarily in the insurance and reinsurance industry.  Arbitration within Bermuda has become increasingly popular and it is often named as the seat for arbitration The GOB has considered promoting Bermuda as a global center for international arbitration.

Bermuda has its own arbitration legislation.  The Bermuda International Conciliation and Arbitration Act of 1993 adopted the UN Commission on International Trade Law (UNCITRAL model law) as their rules for governing arbitration procedures.  Under the umbrella of the United Kingdom, the ratification of the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York convention) was extended to Bermuda who became a member state in 1980.

Under Bermuda law, arbitrators and foreign legal counsel traveling to Bermuda for the purposes of participating in arbitration do not need to be locally licensed. The Department of Immigration does however require advance notice of their presence in the jurisdiction.

The judicial system handles investment disputes unless the parties have agreed to submit their disputes to arbitration.

ICSID Convention and New York Convention
Through the United Kingdom, Bermuda has ratified the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention).Under the convention, foreign arbitral awards are enforceable within Bermuda's domestic courts. Likewise under the United Kingdom, Bermuda is also a member state to the International Centre for Settlement of Investment Disputes (ICSID Convention).

Duration of Dispute Resolution – Local Courts
Information unavailable

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.