The new DIAC arbitration rules now replace the once applicable Rules of Commercial. Conciliation and Arbitraion of Dubai Chamber of. Although the Proposed New Rules will be issued by Decree thus having force of law (as is the case with the current DIAC Arbitration Rules. The DIAC has revised and improved its Arbitration Rules. The draft of the new DIAC Arbitration Rules awaits approval before they will have.
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This is a welcome development for parties wishing to have disputes resolved in the UAE, not least because the DIFC courts will usually simply uphold and ruled not look behind the merits of an arbitral award, resulting in a more straightforward and certain ratification process than often experienced in the Dubai Court system. The current position regarding the signature of arbitral awards is contained within Article 4 of the Civil Procedure Code.
DIAC Arbitration Rules
This has been widely interpreted as requiring all of the arbitrators to physically sign the award in the UAE; a failure to do this has led to a number of successful challenges to arbitral awards in the UAE.
This is an important development for reasons of practicality as it will avoid the incurrence of unnecessary travel costs and time.
However, only time will tell once the New DIAC Rules are implementedwhether this will prevent such challenges being made before the Dubai Courts notwithstanding the introduction of such changes. Whilst a tribunal could always arguably sanction a recalcitrant party using its powers as a judicial body for example by drawing adverse inferences, making ru,es awards or rendering evidence obtained through improper means as inadmissiblethe New DIAC Rules now expressly give the tribunal power to impose sanctions where parties or counsel:.
This is an important change although it will be interesting to observe how willing arbitrators are to enforce these provisions in light of Article of the UAE Penal Code as amended which imposes criminal liability on arbitrators amongst others who issue decisions and opinions contrary to the duties of impartiality and neutrality see below.
This amendment has caused apprehension amongst practitioners in the region and led to gules arbitrators no longer accepting appointments in the UAE for fear of being prosecuted. In addition, the tribunal has been expressly granted the power to take into account any third party funding arrangements when apportioning the costs of the arbitration. The Current DIAC Rules do not contain any provision for the consolidation of multiple disputes under multiple contracts and make very limited provisions for the appointment of a tribunal in a multi-party context.
Under the New DIAC Rules, claims arising out of or in connection with more than one contract can be made in a single arbitration provided that certain conditions are met. These are set out in the new Article 8 and state:. This change to the rules will be welcomed abritration practitioners in the region as it will allow a smoother arbitral process, reduce the need for multiple parallel proceedings to take place and thereby reduce the costs involved.
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Such expedited proceedings would be decided rulrs a sole arbitrator on the basis of a documents ruules process and with the final award being issued within three months of the transfer of the file. This differs from the Current DIAC Rules which do not set any guidelines as to when a party can apply for expedited proceedings to take place. This guidance helps to clarify when DIAC are likely to consider allowing proceedings on an expedited basis, which should bring certainty to local practitioners, although there is no guidance as yet as to what constitutes “exceptional circumstances”.
This document and any information accessed through links in this document is provided for information purposes only and does not constitute legal advice. Professional legal advice should tules obtained before taking or refraining from any action as a result of the contents of this document.
The new DIAC Arbitration Rules
London 23 January London 6 February View all training materials. Breaking down Brexit Construction blog Fundamental: Signature of awards The current position regarding the signature of arbitral awards is contained arbitrarion Article 4 of the Civil Procedure Code.
Whilst a tribunal could always arguably sanction a recalcitrant party using its powers as a judicial body for example by drawing adverse inferences, making costs awards or rendering evidence obtained through improper means as inadmissiblethe New DIAC Rules now expressly give the tribunal power to impose sanctions where parties or counsel: Consolidation of multiple contracts The Current DIAC Rules do not contain any provision for the consolidation of multiple disputes under multiple contracts and make very limited provisions for the appointment of a tribunal in a multi-party context.
These are set out in the new Article 8 and state: Expedited procedure Under the New DIAC Rules a party will be able to request that proceedings be dealt with on an expedited basis where: Pathways to solutions London 6 February View all events.
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