Abu Dhabi Court of Cassation Re-affirms Precedence of New York Convention

Analysis

The enforcement of foreign arbitral awards in the UAE has, since 2006, been governed by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958.

However the previous rules on the enforcement of foreign arbitral awards (found at articles 235 - 238 of the UAE Civil Procedure Law) have not been repealed. This has sometimes led to confusion as to whether the previous rules still apply notwithstanding the UAE's ratification of the New York Convention.

In Challenge No. 679 of 2010, the Abu Dhabi Court of Cassation reaffirmed the supremacy of the New York Convention over the previous UAE Civil Procedure Law, quashing the decisions of both the Court of First Instance and Court of Appeal.

Facts and procedural background

The Claimant filed a claim before the Abu Dhabi Court of First Instance seeking the ratification and enforcement of a French arbitration award that had been issued under the auspices of the ICC.

The Defendant argued that the award contradicted a criminal judgment issued in the UAE in which the Claimant had been ordered to pay a fine for fraud.