DIFC 287/2018

Igora Filters and Purification Devices Trading v Igan Middle East Fzc

The original dispute involved the breach of a contract and claim that one of the parties had been deceitful about the business relationship. A key issue was whether the DIFC courts had jurisdiction to hear the case under the gateways and as there was an arbitration agreement. The court also considered if the proceedings should be stayed and costs.

Background

A Claimant Igora Filters and Purification Devices Trading, was a company operating in Dubai, UAE that developed and sold machines making water out of air humidity. The Defendant was Igan Middle East FTZ, a company registered in Ajman, UAE.

The parties' entered into an Exclusive Sales Agency Agreement around 30 January 2018. After some discussions, the Defendant served the Claimant with a Termination Notice on 20 March 2018. As a result of this termination and other alleged actions by the Defendant, the Claimant argued that the Defendant had breached a Non-Compete Clause of the Agreement and had been 'deceitful' about their business relationship. The Claimant sent the Defendant a Notice to Cease and Desist on 19 April 2018 to which the Defendant replied on 22 April 2018.