UAE Law and Practice Contributed by: His Excellency Tarish Almansoori, Feteiha Korra, Khamis Moustafa and Hala Almubarek, Tarish Al Mansoori Advocates and Legal Consultants
10.5 Court-Imposed Conditions on Granting an Appeal Under Federal Decree-Law No. (42) of 2022 on Civil Procedure, the conditions for admitting an appeal are prescribed by law, not imposed by the court. An appellant must file the appeal within the statutory time limit and pay the prescribed court fees and deposits at the time of filing. Failure to comply with these pro- cedural requirements – such as missing the appeal deadline, non-payment of fees or failure to submit the required security – renders the appeal inadmissible. 10.6 Powers of the Appellate Court After an Appeal Hearing After hearing an appeal, the Court of Appeal may affirm, amend or set aside the lower-court judgment. If the judgment is set aside, the court may either decide the case on the merits where it is ready for adjudica- tion, or remit it to the court that issued the appealed judgment for reconsideration. Similarly, the Court of Cassation may quash the appealed judgment and remit the case to the Court of Appeal, or decide it directly where legally permissible. 11. Costs 11.1 Responsibility for Paying the Costs of Litigation Pursuant to Articles (133) to (136) of Federal Law No. (42) of 2022 on Civil Procedure, the losing par- ty is generally responsible for the costs of litigation, including court fees, expenses and attorneys’ fees as determined by the court. The court decides on costs automatically upon issuing judgment and may divide them among multiple losing parties proportionally. However, the court may order the prevailing party to bear all or part of the costs if it caused unnecessary expenses or concealed relevant documents. Where both parties partially succeed, costs may be shared. Additionally, a party that initiates a claim or defence on malicious grounds may be ordered to pay costs and a fine between AED1,000 and AED10,000. According to Article (4) of Dubai Law No. (21) of 2015 on Court Fees, a party may challenge the amount of court fees. If a dispute arises at the time of register-
ing a case, appeal or application, it is referred to the President of the competent court, whose decision is final. Moreover, the court hearing the case may, either sua sponte or upon a party’s request, reconsider the amount of collected fees during the proceedings. 11.2 Factors Considered When Awarding Costs The court considers several factors when awarding legal costs. The general rule is that costs are imposed on the losing party, including attorneys’ fees and translation expenses, as determined by the court. However, the court may, under Article (134) of Fed- eral Law No. (42) of 2022 on Civil Procedure, order the prevailing party to bear all or part of the costs if that party caused unnecessary expenses or concealed relevant documents. In cases where both parties partially succeed or fail, Article (135) empowers the court to apportion costs between them or direct each to bear its own. Addition- ally, under Article (136), the court may impose costs and a fine ranging from AED1,000 to AED10,000 if any party files a claim, motion or defence on malicious grounds. Thus, the court exercises discretion based on fairness, conduct of the parties, and the outcome of the case. 11.3 Interest Awarded on Costs Under UAE law, interest is not awarded on legal costs. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country ADR methods, particularly mediation and conciliation, are encouraged. They are seen as efficient mecha- nisms to preserve business relationships. 12.2 ADR Within the Legal System Several courts operate mediation centres. Judges may refer matters to mediation at any stage, and par- ties that settle through these channels may request ratification so that the agreement acquires enforce- ability equivalent to a court judgment.
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