IRAQ Law and Practice Contributed by: Buraq Al-Hamdy, Waddah Hamed, Sajida Ankouni and Mohammad Jaber, Basrah Obelisk Law Firm Ltd
3.10 Relief In Iraq, arbitral tribunals may grant remedies such as monetary damages and specific performance, in line with the arbitration agreement. Interim relief may be available depending on the agreed procedural rules, although practical effective- ness may depend on court support for enforcement. All relief remains subject to mandatory provisions of Iraqi law and public policy limitations. In Iraq, formal alternative dispute resolution mecha- nisms outside litigation and arbitration remain limited but are primarily based on amicable settlement and mediation. Commercial parties commonly attempt settlement negotiations either directly or through contractual dispute resolution clauses requiring escalation before formal proceedings. Mediation may also be used on an ad hoc basis, although it is not yet highly institu- tionalised in commercial practice. 4.2 Requirements to Engage in ADR There are no general statutory requirements mandat- ing ADR before litigation unless the parties have con- tractually agreed to an escalation or amicable settle- ment mechanism. 4. Other ADR Methods 4.1 ADR Procedures Where ADR clauses exist, parties are expected to comply with the agreed steps. Failure to do so does not generally invalidate a claim, but may affect pro- cedural standing or lead to temporary suspension of proceedings until contractual steps are fulfilled. 4.3 Impact of ADR ADR does not generally prevent access to courts in Iraq unless it is expressly agreed as a mandatory pre- condition. In practice, courts may encourage settlement efforts, particularly in civil and commercial disputes, but ADR
primarily affects timing and procedural progression rather than substantive rights. 4.4 Timing of ADR ADR is typically used at an early stage of a dispute, often before formal proceedings are initiated, particu- larly where required under contract. Engagement in ADR does not automatically suspend limitation periods unless expressly agreed by the par- ties or provided for in the contract. 4.5 Confidentiality ADR processes such as mediation and negotiation are generally treated as confidential in practice, particu- larly where conducted privately or under contractual arrangements. However, there is no comprehensive statutory regime governing confidentiality across all ADR mechanisms. 4.6 Costs ADR costs are generally borne by the parties based on mutual agreement. In the absence of agreement, costs are typically shared equally or allocated as part of settlement terms reached between the parties. 4.7 Courts and ADR Courts in Iraq generally adopt a supportive but non- interventionist approach to ADR. While ADR is not mandatory, courts may encourage parties to explore settlement options, particularly in commercial and civil disputes, in order to reduce procedural backlog and promote efficient resolution.
5. Costs, Fees and Funding 5.1 Legal Fees
In Iraq, legal fees are generally agreed between law- yers and clients in accordance with the professional rules of the Iraqi Bar Association. Fee structures may be fixed, hourly or case-based depending on the com- plexity and nature of the dispute. In litigation, court fees are payable upon filing and are generally calculated based on the value of the claim, with higher-value claims attracting higher court fees.
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