DCC 61/1994

This case involved a claim for either the payment of damages or that the matter should be referred to arbitration in the UAE. There was an agreement between the parties that the arbitration should be held in Geneva which the court of first instance followed. The key point was when the issue of arbitration should be raised and whether if none of the claimants are present at the required first hearing it is sufficient for their lawyer to raise it.

Background

A claim was brought against defendants ordering them to pay 1,000,000 AED in damages, or that the matter be referred to arbitration in the UAE. The agreement between the parties stated that arbitration should be held in Geneva. The court of first instance held that the matter be referred to arbitration in Geneva as agreed by the parties. The claimant appealed and the appeal court upheld the judgement. The claimant appealed by cassation arguing the defendants had not raised their defence relating to arbitration at the first hearing. Therefore this should have been viewed as an acceptance of the Dubai court's jurisdiction.

Decision