International Trade Dispute Adjudication Mechanism in UAE
Litigation System
Court Structure and Jurisdiction
1. Court of First Instance
- Jurisdiction: Handles all initial trials, including international trade disputes if the parties have not agreed to arbitration or another form of ADR.
- Process: Cases are filed here and go through a trial process where evidence is presented, and witnesses may be called.
2. Court of Appeal
- Jurisdiction: Reviews appeals from the Court of First Instance on both factual and legal grounds.
- Process: Parties can present new evidence and argue their case anew, but typically, the focus is on potential errors in the initial trial.
3. Court of Cassation
- Jurisdiction: The highest court, reviewing decisions from the Court of Appeal primarily on points of law.
- Process: Ensures that legal principles and procedures were correctly applied in the lower courts. Its decisions are final and binding.
Litigation Process
Filing a Lawsuit
- Complaint: The plaintiff files a statement of claim, detailing the dispute and the relief sought.
- Service: The defendant is served with the complaint and given a chance to respond.
Preliminary Procedures
Mediation and Reconciliation: Often required, especially in personal status and labor cases, but also applicable in commercial disputes.
Court Hearings
- Evidence Presentation: Both parties present their arguments, submit evidence, and call witnesses.
- Judgment: After considering all the evidence and arguments, the court issues a judgment.
Appeals
- Court of Appeal: Reviews the case for any errors and can modify or overturn the initial judgment.
- Court of Cassation: Reviews legal issues, ensuring the correct application and interpretation of the law.
Enforcement of Judgments
- Domestic Judgments: Enforced through the court’s execution department, which can seize assets or garnish wages.
- Foreign Judgments: Recognized and enforced under specific conditions, such as reciprocity agreements or international conventions.
Arbitration
Legal Framework
- UAE Federal Arbitration Law: Federal Law No.6 of 2018, based on the UNCITRAL Model Law, governs arbitration in the UAE.
Arbitration Centres
- Dubai International Arbitration Centre (DIAC): Handles a significant volume of international trade disputes.
- Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC): Another major center for arbitration.
- DIFC-LCIA Arbitration Centre: A collaboration between the Dubai International Financial Centre (DIFC) and the London Court of International Arbitration (LCIA), operating under English common law principles.
Arbitration Process
- Arbitration Agreement: Parties must agree to arbitration, usually via a clause in their contract.
- Appointment of Arbitrators: The parties select arbitrators to form the arbitral tribunal.
- Arbitral Proceedings: The tribunal conducts hearings, reviews evidence, and issues an arbitral award.
- Enforcement: Arbitral awards are enforceable in UAE courts under the UAE Arbitration Law and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Alternative Dispute Resolution (ADR)
Mediation
- Voluntary Process: Involves a neutral mediator helping parties reach a settlement.
- Confidentiality: Proceedings are confidential and aimed at finding a mutually acceptable resolution.
Conciliation
- Active Role of Conciliator: Similar to mediation but the conciliator may suggest solutions.
2. Common Use: Often used in commercial disputes.
Specialized Dispute Resolution Bodies
DIFC Courts
Jurisdiction: Over civil and commercial matters within the DIFC and cases where parties agree to their jurisdiction.
Legal Framework: Based on English common law, providing an alternative to the UAE’s civil law system.
Process: Offers an English-language common law system, making it attractive for international parties.
ADGM Courts
- Jurisdiction: Operate within the Abu Dhabi Global Market, handling civil and
commercial disputes under a common law framework. - Legal Framework: Similar to the DIFC Courts, based on English common law.
- Process: Provides an internationally recognized legal environment for resolving
disputes.
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