BAHRAIN Law and Practice Contributed by: Noor Al Rayes, Fatema Sarhan, Bradley Price and Raghad Al Matrook, Al Tamimi & Company
7.3 Relief Relief in multi-party or collective actions is generally the same as in ordinary civil proceedings: compen- satory damages, specific performance or declaratory relief. Damages are calculated individually based on each claimant’s actual loss, guided by contract and tort law principles in the Civil Code. There is no statu- tory mechanism for aggregating or distributing dam- ages across claimants. Each claimant must prove their own loss. 7.4 Class Actions, Mass Claims and Arbitration Class actions and mass claims are rare in arbitration. Arbitration binds only parties to the agreement, and joinder typically requires consent. The BCDR Arbitra- tion Rules include provisions for multi-party arbitra- tion, including consolidation and joinder. However, these address multi-party disputes rather than formal class actions. Class arbitration as developed in the United States has not been adopted in Bahrain. Third- party funding can facilitate multi-party claims by pro- viding resources for complex litigation or arbitration, but use remains uncommon. 7.5 Trends Key trends in in dispute resolution in Bahrain include the following. • Modernised infrastructure – The BICC handles complex commercial disputes in Arabic and Eng- lish. The 2022 enforcement reforms have improved efficiency. • Multi-party arbitration frameworks – The BCDR Rules provide guidance on joinder and consolida- tion of multi-party disputes. • Preference for individual proceedings – Courts generally prefer separate trials even where claims share a common basis. • Regional harmonisation – Bahrain’s approach reflects broader MENA trends towards institutional arbitration and procedural rules accommodating multi-party disputes. While Bahrain lacks formal class action legislation, the legal framework allows coordinated multi-party claims, with evolving arbitration and court mecha- nisms.
Joinder and Intervention Multi-party claims are generally brought through joint or representative actions where claimants share the same cause of action, or where an individual inter- venes with a relevant interest. Procedural joinder under the Civil and Commercial Procedures Law allows multiple claimants with a shared legal cause to consolidate their claims into a single case, but each claimant must be specifically named and represented. As to intervention, under Bahraini law, any person may intervene and join ongoing litigation if that person has an interest that is relevant or related to the case. The court has discretion to judge the merits of the intervention and may reject the intervention if it deems it fit and necessary to do so. This means that interven- tion is not automatic – the court will evaluate whether the intervening party’s interest is sufficiently connect- ed to the existing dispute before allowing participa- tion. Court Discretion Courts have discretion over consolidation. In practice, courts often prefer independent trials for each claim- ant, even where claims share a common factual or legal basis. The court renders judgment based on the individual merits of each joined party’s position. No Class-Style Precedent In the context of commercial or regulatory claims, there is no precedent for class-style suits. Enforce- ment is driven by regulators acting in the public inter- est, and any subsequent claim for damages following a regulatory breach must be pursued through indi- vidual or joined civil actions. 7.2 Standing Requirements To participate in a collective action, each claimant must demonstrate a direct and relevant interest in the dispute. Bahrain does not have a formal class certifi- cation process; courts evaluate joinder or intervention on a case-by-case basis. The requirement that all par- ties share the same cause of action is fundamental, and the court may separate claims into individual pro- ceedings if considered more appropriate.
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