DIFC Court of Appeal dismisses lack of authority challenge to DIFC LCIA award

Analysis

DIFC Arbitration Law (DIFC Law No 1/2008), Article 41, requires a party applying to set aside an arbitration award made in DIFC to furnish proof of any ground on which the party relies. This includes a challenge based on the ground that "a party to the arbitration agreement was under some incapacity or the said agreement is not valid under the law to which the parties have subjected it". The award debtor in Ginette [Ginette PJSC v (1) Geary Middle East FZE (2) Geary Limited [CA-005-2016] dated 9 October 2016] failed to satisfy this burden of proof. Specifically, it was conceded by the award debtor that the settlement agreement containing the arbitration agreement was valid. In consequence, the Court of Appeal inferred as a finding of fact that board approval had also been given to the arbitration agreement contained within the settlement agreement. At the very least, the challenging party failed to prove that the company's board, whilst approving the settlement agreement, did not approve the arbitration agreement. Accordingly, the challenge to the arbitration award failed.

Background