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DIFC COURT AN APPROACH OF A CONDUIT COURT IN THE UAE…..
• DIFC Court is extending its jurisdiction over the“ UAE constrained courts" as a "conduit court" by creating / identifying for
award creditors and lawyers, national constitutional paths which were prior thereto strictly forbidden. The latest two
judgments of the DIFC Court of Appeal in relation to a Dubai onshore Arbitral Award and an English Court judgment have
been domestically disliked but internationally applauded.
• The DIFC Court’s recent decisions in Bocimar v ETA and DNB Bank (Appeal Court) follow hot on the heels of Banyan
Tree Corporate Pte Ltd v Meydan Group LLC and XX v YY, in which the DIFC Courts’ approach to being used as a conduit
for onshore enforcement was first tested in the context of the enforcement of foreign and domestic arbitral awards. These
latest cases relate to foreign court judgments and orders, and are further good news for international businesses and financial
institutions – potentially offering parties a faster route to enforcing contractual rights and providing greater legal and
commercial certainty. “Kluwer Arbitration Blog”.
THE DIFC COURTS……POWERS AND JURISDICTION
• The DIFC is an offshore financial free zone and legal jurisdiction geographically located within the United Arab Emirates. It
has an independent judicial system and its own substantive civil and commercial laws, both of which are inspired by
common law.
• Federal Law 8/2004 set up the DIFC, then the DIFC Judicial Authority Law (Dubai Law 12/2004, as amended by Dubai
Law 16/2011) established the DIFC courts and set out a number of jurisdictional 'gateways' which confer exclusive
jurisdiction on the DIFC courts to hear and determine claims, including the recognition and enforcement of foreign orders,
decisions and judgments and arbitral awards ratified by the DIFC courts.
SHOULD ALL DIFC COURTS JUDGMENTS BE ENFORCEABLE IN ALL
UAE EMIRATES??
• In accordance with Article 221 of the Civil Procedures Law and Federal Law 11/1973 regulating Judicial Relations between
Member Emirates in the Federation, an award or judgment recognized by any Emirate court should, in principle, be
enforceable in any other emirate within the United Arab Emirates.
• Supported by the 2009 Protocol of Enforcement between the DIFC courts and the Dubai courts, the DIFC Courts has
decided in two recent cases that parties do not have to have a connection to the DIFC to apply to the DIFC courts to enforce
domestic and foreign arbitration awards and foreign court judgments (which can then be taken to the onshore Dubai courts
for execution).
CONFLICT OF LAWS AND CONSTITUTIONALITY
• Position of DIFC Laws on Ratification of Arbitral Awards, is that the DIFC Courts’ power to enforce non DIFC domestic
awards is limited to Articles 7(4) & 24 of the Court Law, to awards which had already been ratified.
• The legislator cannot create jurisdiction of the DIFC Courts by an instrument which has not been promulgated in Arabic.
• Constitutionality:
- Conflict between DIFC law and UAE Federal law
- Different tests for enforcement
- Conflict of legislation
USC (FEDERAL SUPREME COURT) IS THE COMPETENT COURT TO RULE ON
CONFLICTS!!
• Article 151 of the UAE constitution provides: “The provisions of the constitution shall prevail over the Constitution of the member
Emirates of the Union and the Union Laws which are issued in accordance with the provisions of this constitution shall have priority
over the legislation, regulations and decisions issued by the authorities of the Emirates. In case of conflict, that part of the inferior
legislation which is inconsistent with the superior legislation shall be rendered null and void to the extent that removes the
inconsistency. In case of dispute, the matter shall be referred to the union supreme court for its ruling”.
WHO CAN REFER A QUESTION FOR CONSTITUTIONALITY EXAMINATION
AND WHEN??
• Article 58 of the USC Law provides: “Requests for constitutionality examination raised while examining a case before the
courts shall be referred to the supreme court by virtue of a justified decision from the court, signed by the president of the
competent court and including the texts to be examined, if reference is done to upon a decision from the court on its own. If
the challenge of the constitutionality is raised through the plea of one of the litigants in the lawsuit and accepted by the court
it shall fix a term for the challenger to submit its challenge to the supreme court, and if the term expires without the
submission of proof by the challenger that it has lodged its appeal in time, it shall be considered as having relinquished it.
Family Law
 Marriage
 Prenuptial Agreement
 Guardianship
 Adoption
 Divorce
 Custody
 Removal/Travel Ban
 Relocation
 Maintenance/Alimony
 Settlement Agreement
 International Legal Advice &
Expert Report for Foreign Court
Business & Corporate Services
 Company Set Up
 Corporate Governance
 Employment Advice and Disputes
 Fraud and White-collar Crimes
 Rental Advice and Disputes
 Shareholders Agreements and Disputes
 Distributors Agreement and Disputes
 Loans and Bounced Cheques
Succession & Estate planning
 Drafting and Execution of UAE Wills
 Drafting and Execution of DIFC Wills
 Preparation of Gifts, Heba, Waqf and
Trusts
 Probate administration before UAE & DIFC
Courts
 International Wealth Structuring
 Inheritance / Succession & Probate
The International Advocate Legal Services (“IALS”) is a law firm focusing on high-end cross-border
litigation in Corporate, Civil and Family law matters for a variety of national and international clients.
Email: info@ials.ae
Tel: +971 4 28 44 733

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DIFC COURT AN APPROACH OF A CONDUIT COURT IN THE UAE

  • 1. DIFC COURT AN APPROACH OF A CONDUIT COURT IN THE UAE….. • DIFC Court is extending its jurisdiction over the“ UAE constrained courts" as a "conduit court" by creating / identifying for award creditors and lawyers, national constitutional paths which were prior thereto strictly forbidden. The latest two judgments of the DIFC Court of Appeal in relation to a Dubai onshore Arbitral Award and an English Court judgment have been domestically disliked but internationally applauded. • The DIFC Court’s recent decisions in Bocimar v ETA and DNB Bank (Appeal Court) follow hot on the heels of Banyan Tree Corporate Pte Ltd v Meydan Group LLC and XX v YY, in which the DIFC Courts’ approach to being used as a conduit for onshore enforcement was first tested in the context of the enforcement of foreign and domestic arbitral awards. These latest cases relate to foreign court judgments and orders, and are further good news for international businesses and financial institutions – potentially offering parties a faster route to enforcing contractual rights and providing greater legal and commercial certainty. “Kluwer Arbitration Blog”.
  • 2. THE DIFC COURTS……POWERS AND JURISDICTION • The DIFC is an offshore financial free zone and legal jurisdiction geographically located within the United Arab Emirates. It has an independent judicial system and its own substantive civil and commercial laws, both of which are inspired by common law. • Federal Law 8/2004 set up the DIFC, then the DIFC Judicial Authority Law (Dubai Law 12/2004, as amended by Dubai Law 16/2011) established the DIFC courts and set out a number of jurisdictional 'gateways' which confer exclusive jurisdiction on the DIFC courts to hear and determine claims, including the recognition and enforcement of foreign orders, decisions and judgments and arbitral awards ratified by the DIFC courts.
  • 3. SHOULD ALL DIFC COURTS JUDGMENTS BE ENFORCEABLE IN ALL UAE EMIRATES?? • In accordance with Article 221 of the Civil Procedures Law and Federal Law 11/1973 regulating Judicial Relations between Member Emirates in the Federation, an award or judgment recognized by any Emirate court should, in principle, be enforceable in any other emirate within the United Arab Emirates. • Supported by the 2009 Protocol of Enforcement between the DIFC courts and the Dubai courts, the DIFC Courts has decided in two recent cases that parties do not have to have a connection to the DIFC to apply to the DIFC courts to enforce domestic and foreign arbitration awards and foreign court judgments (which can then be taken to the onshore Dubai courts for execution).
  • 4. CONFLICT OF LAWS AND CONSTITUTIONALITY • Position of DIFC Laws on Ratification of Arbitral Awards, is that the DIFC Courts’ power to enforce non DIFC domestic awards is limited to Articles 7(4) & 24 of the Court Law, to awards which had already been ratified. • The legislator cannot create jurisdiction of the DIFC Courts by an instrument which has not been promulgated in Arabic. • Constitutionality: - Conflict between DIFC law and UAE Federal law - Different tests for enforcement - Conflict of legislation
  • 5. USC (FEDERAL SUPREME COURT) IS THE COMPETENT COURT TO RULE ON CONFLICTS!! • Article 151 of the UAE constitution provides: “The provisions of the constitution shall prevail over the Constitution of the member Emirates of the Union and the Union Laws which are issued in accordance with the provisions of this constitution shall have priority over the legislation, regulations and decisions issued by the authorities of the Emirates. In case of conflict, that part of the inferior legislation which is inconsistent with the superior legislation shall be rendered null and void to the extent that removes the inconsistency. In case of dispute, the matter shall be referred to the union supreme court for its ruling”. WHO CAN REFER A QUESTION FOR CONSTITUTIONALITY EXAMINATION AND WHEN?? • Article 58 of the USC Law provides: “Requests for constitutionality examination raised while examining a case before the courts shall be referred to the supreme court by virtue of a justified decision from the court, signed by the president of the competent court and including the texts to be examined, if reference is done to upon a decision from the court on its own. If the challenge of the constitutionality is raised through the plea of one of the litigants in the lawsuit and accepted by the court it shall fix a term for the challenger to submit its challenge to the supreme court, and if the term expires without the submission of proof by the challenger that it has lodged its appeal in time, it shall be considered as having relinquished it.
  • 6. Family Law  Marriage  Prenuptial Agreement  Guardianship  Adoption  Divorce  Custody  Removal/Travel Ban  Relocation  Maintenance/Alimony  Settlement Agreement  International Legal Advice & Expert Report for Foreign Court Business & Corporate Services  Company Set Up  Corporate Governance  Employment Advice and Disputes  Fraud and White-collar Crimes  Rental Advice and Disputes  Shareholders Agreements and Disputes  Distributors Agreement and Disputes  Loans and Bounced Cheques Succession & Estate planning  Drafting and Execution of UAE Wills  Drafting and Execution of DIFC Wills  Preparation of Gifts, Heba, Waqf and Trusts  Probate administration before UAE & DIFC Courts  International Wealth Structuring  Inheritance / Succession & Probate The International Advocate Legal Services (“IALS”) is a law firm focusing on high-end cross-border litigation in Corporate, Civil and Family law matters for a variety of national and international clients. Email: info@ials.ae Tel: +971 4 28 44 733