IRAQ Law and Practice Contributed by: Buraq Al-Hamdy, Waddah Hamed, Sajida Ankouni and Mohammad Jaber, Basrah Obelisk Law Firm Ltd
6. Interim Remedies 6.1 Availability of Interim Relief
Additional procedural fees may apply at different stag- es of the proceedings. Court-awarded legal costs are typically limited and do not reflect the actual legal fees incurred by the successful party. 5.2 Third-Party Funding Third-party litigation funding is not formally regulat- ed and is not commonly used in Iraq. In practice, it remains very limited and is not a recognised feature of dispute resolution proceedings. 5.3 Contingency Fee Arrangement Contingency fee arrangements are not expressly reg- ulated under Iraqi law and are generally uncommon in practice. Where used, they are typically subject to professional conduct rules and must comply with Iraqi Bar Association regulations. 5.4 Insurance Litigation and arbitration-related insurance products are not widely developed in Iraq. While certain corpo- rate insurance structures may indirectly cover legal risks, dedicated litigation or dispute funding insurance is not commonly available in the market. 5.5 Costs Courts in Iraq may award costs as part of final judg- ments; however, recovery is generally limited and does not fully compensate the successful party for actual legal expenses incurred. In arbitration, costs are typically allocated by the tribunal in accordance with the arbitration agreement or applicable rules. 5.6 Assessment of Costs When awarding costs, Iraqi courts generally take into account the outcome of the dispute, procedural con- duct of the parties and statutory fee schedules. In arbitration, tribunals have broader discretion and may consider factors such as reasonableness, proportion- ality and party conduct during the proceedings.
In Iraq, courts may grant interim relief to preserve rights and maintain the status quo pending resolution of the dispute. Common measures include precau- tionary attachments over assets, freezing orders and orders preventing disposal of disputed property. Interim measures are generally discretionary and are granted where there is urgency and a risk of irrepa- rable harm. 6.2 Interim Relief to Support Arbitration and ADR Courts may grant interim relief in support of arbitra- tion proceedings, particularly where urgent protective measures are required before or during the arbitral process. Such relief is available even where the dispute is sub- ject to an arbitration agreement, reflecting the sup- portive role of the courts. 6.3 Timing of Applications for Interim Relief Applications for interim relief are typically made at an early stage of proceedings and may also be filed before the substantive claim is initiated where urgency can be demonstrated. Courts generally require a prima facie showing of urgency and risk of prejudice if relief is not granted. 6.4 Security for Costs Security for costs may be requested by a defendant where there is concern regarding the claimant’s ability to satisfy a potential adverse costs order. Courts consider factors such as financial capacity, domicile and risk of non-enforcement before granting such orders. 6.5 Interim Injunctions Courts may grant interim injunctions to prevent ongo- ing or imminent harm, particularly where financial compensation would not be an adequate remedy.
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