Securing Storage Payment Claims Under the Laws of the Dubai International Financial Centre ("DIFC")-Bailment and Liens

Analysis

Senior Legal Consultant, Nick McGrenra from the Banking & Finance team discusses the legal considerations surrounding bailments and liens when securing storage payment claims under laws applicable in DIFC and what the potential rights and duties are of the respective parties.

In many common law jurisdictions the relationship between a professional storage operator and its clients is one which involves the concept of bailment, and the bailment property is frequently subject to a security right known as a lien. Some jurisdictions legislate for a lien in favour of a person providing such storage services. This is not the case under the provisions of DIFC or English statutes, although a common law lien may arise (subject to satisfaction of certain criteria), and the parties can create a contractual lien.

Set out below are the potential rights and duties of the parties in respect of the bailment relationship, and the occurrence and exercise of any lien, in the context of laws applicable in the DIFC.

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