Britannia Privy Council appeal: a key decision for property rights in the Cayman Islands

The Judicial Committee of the Privy Council has confirmed that a misdescription on the land register does not alter the true classification of easements. 

In a key decision for property rights in the Cayman Islands, the Privy Council's ruling in Cayman Shores Development Ltd and another v. The Proprietors, Strata Plan No. 79 (aka Lion's Court) and others [2025] UKPC 27 has confirmed the right of the residential unit owners at Britannia Estates (the Lot Owners) to use recreational facilities at the former Britannia Resort. 

The Privy Council ruled in favour of the Lot Owners, overturning the 2023 decision of the Cayman Islands Court of Appeal that the restrictive agreements did not grant easements benefiting their land that were enforceable against the current owners of the resort.

The appeal centred on whether the registration of recreational rights (which included the right to use a beach club and golf course) as restrictive agreements rather than easements meant they were unenforceable against successive owners of the facilities.

Background: decisions of the lower courts

When the Britannia Resort was originally developed, purchasers of the residential units were granted rights to use the Resort’s recreational facilities. These rights were intended to be passed on to future owners of the residential units, however, when these rights were entered onto the land register, they were misdescribed as “restrictive agreements” rather than as “easements”. 

The dispute arose when Cayman Shores Development Ltd, a subsidiary of Dart Realty (Cayman) Ltd, acquired the land previously known as the Britannia Resort in 2016. Dart informed the Lot Owners that the recreational facilities were being redeveloped and would only be available to them as licensees following the redevelopment. The Lot Owners argued that they did not require a licence as they had been granted property rights benefiting all present and future owners.

Although the court of first instance found in favour of the Lot Owners, the Cayman Islands Court of Appeal found that the rights were unenforceable. The Court of Appeal’s decision was based on the misdescription – as the rights were inaccurately described as restrictive agreements rather than easements, their registration on the land register was not valid.

For further background, read Land use and property rights: lessons from the Cayman Court of Appeal’s Britannia decision

The Privy Council’s decision considers the “true” classification

The Privy Council found that the rights were easements even if they had been misdescribed as restrictive agreements. Because the rights were legally easements, not restrictive agreements, applying the incorrect label to them did not alter their “true” classification.

In the judgment, the Privy Council noted that section 92 of the Registered Land Act does not require the instruments to be registered as easements, only that they be registered as an incumbrance. In this instance, the instruments were not in the prescribed form for an easement. However, by signing and filing the instruments, the Registrar of Lands had approved their form. As such, the grant had been completed and the rights were therefore binding on Cayman Shores Development Ltd. 

The Privy Council noted it was now easier to conclude the rights qualified as easements due to the decision in Regency Villas Title Ltd v Diamond Resorts (Europe) Ltd [2018] UKSC 57, which confirmed easements could be granted to the owners of residential units in respect of the facilities at a country club resort.

Actions for Registrar of Lands

In his judgment, Lord Briggs invited the Registrar to consider rectifying the register to correct the mislabelling of easements as restrictive agreements not only in the Britannia case but where similar circumstances arise.

How Ogier can help

Ogier's Property team in the Cayman Islands are experienced in advising on complex property law matters, including easements, restrictive agreements and land registration issues.

If you would like advice on how this decision may affect your property rights or development plans, get in touch with our team.

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