DIFC 220/2021
Laven v Lavali
This case involved non-payment of a purchase order. The parties were outside the DIFC and the contract contained a clause that disputes would be heard by the Courts in Bologna, Italy not the DIFC. So the DIFC courts lacked jurisdiction.
Background
The Claimant was Laven, a company registered in Sharjah, UAE.
The Defendant was Lavali, a company registered in Dubai, the UAE.
Article 5(A) of Dubai Law No. 12/2004, as amended, (the JAL) sets out the DIFC Courts’ jurisdiction.
Under Article 5(A)(2) of Dubai Law No. 12/2004, the DIFC Courts could exercise their jurisdiction over a matter that is unrelated to the DIFC, where the parties had agreed in writing that any dispute arising between them would be referred to the DIFC Courts for adjudication. Such a provision would allow the parties to ‘opt-in’ to the DIFC Courts’ jurisdiction, provided that it clearly demonstrated the parties’ intention to do so.