Hassans’ partner, Nigel Feetham, co-author of the leading reference book, Protected Cell Companies: A Guide to Their Implementation and Use (Feetham & Jones, 2nd edition, Spiramus Press 2010) has received industry citation in relation to a US judgement, firmly placing Mr Feetham as a leading voice in this arena.
Protected Cell Companies are a form of companies now found in the laws of many onshore and offshore jurisdictions. Gibraltar introduced its own regime for cell companies in 2001. There are, however, very few reported cases on Protected Cell Companies anywhere in the world. Nigel Feetham co-authored a book on the subject in 2010 which has been used in professional education courses and by international consultants when advising their clients on PCCs for many years.
However, in a recent US case, the Montana Federal Court has analysed the legal status of Protected Cell Companies and the judge cites the book. The case is Pac Re 5-AT v. AmTrust N.A., Inc., No. CV-14-131-BLG-CSO, 2015 U.S. Dist. LEXIS 65541 (D. MT, May 13, 2015).
The question before the Court was essentially who was the proper party to a contractual dispute concerning a Protected Cell Company. The Court held that the protected cell under the applicable local legislation was not a separate legal person from the Protected Cell Company, did not have capacity to sue or be sued in its own name, and that since the reinsurer had acted on behalf of the cell on a captive reinsurance agreement, accordingly the Protected Cell Company was a proper party to the dispute.
Catherine Knock, Head of Marketing at Hassans, commented:
“Authoring on subjects on which he is knowledgeable is a strong passion of Nigel’s but this is the ultimate reward for the time it takes to create a reference book at this level; not many lawyers get their books cited in law reports.”
A link to a copy of the judgement can be found below at: