A construction dispute resulted in a substantial arbitration award against a defendant (appellant) for defective designs leading to significant costs for the claimant (respondent). The arbitration award covered repair costs, water drainage, consultant fees, compensation for design flaws, lost rental income, arbitration costs, and legal fees. The total amount awarded exceeded AED 15 million, plus 9% annual interest until full payment.

The defendant appealed this ruling to the Abu Dhabi Court of Appeal, claiming the arbitration tribunal erred by refusing to include a subcontractor in the proceedings despite finding them partly responsible and by exceeding its authority in awarding damages.

Procedures

Appeal Court – Decision dated 31/08/2024.

On 31 July 2024, the Court of Appeal dismissed the appeal. The appellant appealed this judgment through cassation.

Appeal before the Abu Dhabi Court of Cassation.

Submissions