Model of proceedings in civil cases on the example of the judiciary in Dubai.
The first factor to consider when litigation looms on the horizon is the correct procedure under which proceedings can be initiated. The UAE has both onshore and offshore courts that operate differently and are governed by separate laws.
Often the parties enter into a contractual relationship, and the agreed terms must be documented in the contract. The contract should clearly define what should happen in the event of a dispute between the parties to the transaction and which courts should decide such a dispute.
The applicable law and jurisdiction of the agreement will determine the potential future trajectory of the dispute. Therefore, it is important that an individual or company consults with a law firm, carefully considers applicable law and jurisdiction, as well as all other terms and conditions, before entering into any contractual relationship.
The Civil Procedure Scheme and Implementing Rules govern the procedure for actions taken in UAE Land Courts.
In order to bring an action in a court in Dubai, a claimant must prepare a statement of claim and then send it to the Court of First Instance. If the claimant is legally represented, a power of attorney will be required to confirm that a representative has been effectively appointed.
The nature of the claim and the amount in dispute will dictate the appropriate court type and jurisdiction; minor or major. In order to bring an action, the plaintiff will have to pay a court fee. The filing fee is calculated based on a percentage of the claim amount. This amount is limited depending on the value of the claim.
The statement of claim must be served on the opposing party, i.e. the defendant, in person. If the application cannot be served in person, the Court of First Instance (CFI) may order service by other means.
Once the claim has been served on the defendant, the defendant has the option of granting a power of attorney to the lawyer (if he wishes to be legally represented) and defending against the claim. Where appropriate, the defendant may also file a counterclaim against the plaintiff. There is no predetermined structure for the number of pleadings that must be filed. The judge will direct the entire legal process until it is suspended or sentencing.
It is common practice for the court to appoint an independent expert to help establish the facts and collect relevant documentation. The content of the expert opinion helps the judge in the decision-making process. Either party may also request the appointment of an expert. The claimant or the person making the request will usually bear the costs of engaging an expert.
A CFI judgment can be issued at any time up to 12 months after a lawsuit is filed with the court. It is not uncommon for a trial to take longer than 12 months in certain situations, especially in complex cases.
Within 30 days from the date of the judgment, the party may appeal to the Court of Appeal. The Court of Appeal may set aside the judgment if it finds that the CFI committed a factual or legal error during the proceedings in the first instance. In order to file an appeal, the party bringing the appeal must pay a court fee.
The judgment of the Court of Appeal must be issued within six to nine months of the appeal being filed.
The last appeal layer is the Court of Cassation. A party may appeal the judgment of the Court of Appeal within 60 days of the judgment. The Court of Cassation can set aside a judgment of the Court of Appeal only if the court of appeal erred in law.
The judgment of the Court of Cassation is final and it can usually take three to six months for a judgment to be issued. If the party to the court proceedings does not challenge the judgment of the court of second instance to the supreme court, the judgment becomes final upon the expiry of the time limit for appeal.
Once the judgment becomes final, it will be enforced by the Dubai Court Enforcement Division, provided that the debtor(s) has assets in Dubai and the debtor(s) does not pay voluntarily. Therefore, it is important to consider at the outset whether the opposing party has any assets, and if so, where they are located.
The Eberhard Advisory team looks forward to hearing from you about representing you in potential civil proceedings in Dubai.
