UNITED ARAB EMRITES Law and Practice Contributed by: Ali Dakhlallah, Karen Seif, Matthew Page and William Prasifka, Habib Al Mulla & Partners
2.3 Pre-Action Conduct The UAE does not impose a universal pre-action con- duct requirement for commercial claims. There is no general obligation to serve a formal notice or engage in negotiation before commencing court proceedings. However, it is common practice for a claimant to send a “letter before action” (or legal notice) setting out the nature of the claim, the relief sought and a deadline for response. While not legally mandated, such letters serve as evidence of good faith and may influence the court’s assessment of costs and conduct. Notwithstanding the absence of a general require- ment, several categories of disputes are subject to mandatory pre-action procedures, and failure to com- ply will result in the court declining jurisdiction or dis- missing the claim as inadmissible. Among those categories are employment disputes, which must first be filed as a complaint with the Minis- try of Human Resources and Emiratisation (MOHRE). MOHRE attempts to mediate and resolve the dispute amicably within a set period of time. If no resolution is reached, then the case can be referred to the com- petent court. Filing directly with the court without first exhausting the MOHRE process renders the claim inadmissible. A second example is medical malpractice claims, which are referred to the relevant health authority before the competent court. In Dubai, the complainant must file with the Dubai Health Authority (DHA), which refers the matter to a Medical Liability Committee for clinical assessment. In Abu Dhabi, the complaint is filed with the Department of Health (DOH). The com- mittee’s findings are typically a prerequisite before the claim may proceed to court. A third example is commercial agency disputes, which must first be lodged before the Commercial Agencies Committee at the Ministry of Economy prior to referral to the court. The committee examines the dispute and issues a decision, which may be challenged before the competent court. A fourth example is applications to strike off a regis- tered trade mark, which must first be lodged before the Trademarks Committee at the Ministry of Econo-
Tortious Claims Tortious claims including negligence and other non- contractual civil liability must generally be brought within three years from the date on which the claim- ant becomes aware of the damage and the individual responsible. Some statutory exceptions apply, such as the ten-year time bar applied in relation to the decennial liability of architects and contractors. Labour Claims The time bar for claims arising under the new UAE Labour Law (Federal Decree-Law No 9 of 2024) has been increased to two years (rather than one year) from the date the right arose, failing which the claim The UAE has a dual judicial system comprising both federal courts and local (emirate-level) courts. The emirates of Fujairah, Ajman and Umm Al Quwain fall under the federal judiciary, headed by the Fed- eral Supreme Court. The remaining emirates, namely Abu Dhabi, Dubai, Sharjah (as of recently) and Ras Al Khaimah, maintain their own independent local judicial systems with their own courts of cassation. Federal law is applied throughout all emirates unless domestic laws are issued at the emirate level. Onshore Court Structure becomes time barred. 2.2 Court Structure Onshore courts in the UAE follow a three-tier hierar- chy. Proceedings begin in the Court of First Instance. This court hears both factual and legal issues. Judg- ments from this court may be appealed to the court of appeal, which further re-examines the facts and law in their entirety. Subsequently, the court of cas- sation or the Federal Supreme Court will review legal issues only. Offshore Court Structure In addition to the onshore courts, the UAE hosts off- shore common law courts in the DIFC and ADGM. These courts operate independently from the onshore judiciary and coexist within the broader UAE legal framework, thus providing parties with alternative liti- gation forums by agreement.
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