Cayman court limits scope of arbitration clauses in dissolving limited partnerships

In the recent case of Cybernaut Growth Fund LP, limited partners accounting for approximately half of the partnership interest petitioned to wind up the partnership on just and equitable grounds, based upon loss of trust and confidence by the petitioning limited partners in the general partner.

That petition was met by an application to strike out or stay the petition, which asserted that: (i) the petitioning limited partners had contracted out of their right to petition; and (ii) the petition could not proceed until an arbitration commenced by the general partner had been resolved…

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