UNITED ARAB EMRITES Law and Practice Contributed by: Ali Dakhlallah, Karen Seif, Matthew Page and William Prasifka, Habib Al Mulla & Partners
6. Interim Remedies 6.1 Availability of Interim Relief
may award costs on a standard or indemnity basis. Arbitration tribunals will consider the conduct of the parties, but do not typically consider other elements to limit the recovery of costs. Overall, while cost recovery is technically available across all UAE forums, it is significantly broader and more predictable in arbitration, and in the DIFC and ADGM. 5.6 Assessment of Costs The factors considered when awarding costs in the UAE depend on the forum (onshore courts, DIFC or ADGM), but generally focus on the outcome of the case, conduct of the parties and reasonableness of costs. In onshore UAE courts (including Dubai Courts), cost awards are limited and discretionary under the UAE Civil Procedure Law (Federal Decree-Law No 42 of 2022). The primary factor is the result of the case, with the losing party typically ordered to pay court fees and expenses. Courts may also consider the conduct of the parties, including bad faith or unnecessary delay. However, legal fees are usually awarded only on a nominal basis, and proportionality or detailed cost assessment plays a minimal role. For arbitration, as well as the DIFC and the ADGM, the principle is that “costs follow the event”. Factors that play a role include: • the degree of success of each party; • conduct before and during proceedings; • the reasonableness and proportionality of costs incurred (this is more typically in the DIFC/ADGM than in arbitration); • the complexity and value of the dispute; and • any settlement offers or attempts to resolve the dispute. Courts may award costs on a standard or indemnity basis, depending on conduct.
The UAE provides a broad range of interim (precau- tionary) relief, but the nature and scope depend on whether the matter is before onshore courts or com- mon law jurisdictions (DIFC/ADGM). In onshore UAE courts, interim relief is primarily gov- erned by the Civil Procedure Law and includes pre- cautionary attachment of assets (over bank accounts, real estate or movables) to prevent dissipation where a prima facie debt is established. Courts may also impose travel bans to prevent a debtor from abscond- ing, and order asset disclosure through the execution judge, including inquiries with authorities such as the central bank or land department. Additional measures include seizure of assets, appointment of experts to preserve evidence and precautionary injunctions aimed at maintaining the status quo, though these are narrower than common law injunctions. Courts may also grant interim relief in support of arbitration. Arbitration tribunals also have the authority to grant a wide array of interim relief, combining a hybrid of measures from onshore UAE and the offshore courts. The DIFC and the ADGM offer typical common law remedies, including freezing orders (Mareva injunc- tions), search orders (Anton Piller orders), interim pro- hibitory and mandatory injunctions, asset disclosure orders, receivership, anti-suit injunctions and security for costs. 6.2 Interim Relief to Support Arbitration and ADR Courts in the UAE do grant interim relief in support of arbitration and ADR, but the scope and approach differ between onshore courts and the common law jurisdictions. In onshore UAE, the UAE Federal Arbitration Law (Fed- eral Arbitration Law No 6 of 2018) expressly empow- ers courts to grant interim measures in aid of arbitra- tion. Under Article 18, a party may request the court to order precautionary measures before or during arbitral proceedings, including attachment of assets, preser-
526 CHAMBERS.COM
Powered by FlippingBook