UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy
Transfer of Rights and Arbitration Clauses When a B/L is transferred to the consignee, it typi - cally transfers all the rights and actions of the shipper. However, arbitration clauses are treated differently. For an arbitration clause to be enforceable against the consignee, the consignee must explicitly consent to it in writing. If the arbitration clause is negotiated separately and individually with the carrier, it may be deemed null and void. This means that a consignee cannot be auto - matically bound by an arbitration clause unless they have agreed to it. Enforceability of Arbitration Clauses UAE courts have ruled that for an arbitration clause contained in a B/L to be enforceable, it must be prominently displayed on the front side of the B/L. This clause should be presented in the same font size and style as other essential information, such as the names of the shipper and carrier, ensuring that the clause is clearly visible and acknowledged by all par - ties involved. Thus, for an arbitration clause in a B/L to be recognised and enforced in the UAE, it must be clearly stated and prominently positioned in the document, and the consignee must give their explicit written consent. If these conditions are not met, the clause may not be enforceable. 7.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading In the UAE, the recognition and enforcement of law and jurisdiction clauses in B/L depend on the spe - cific conditions set by the country’s legal framework, including both its onshore civil law system and the offshore jurisdiction of the DIFC and ADGM. Onshore Jurisdiction (UAE Civil Law System) In the UAE’s onshore civil law system, arbitration clauses in B/L can be enforced, but certain condi - tions must be met. • Explicit consent: The consignee must explicitly consent to the arbitration clause. If the clause is negotiated separately from the B/L, it might not be enforceable. • Clear incorporation: The arbitration clause must be clearly indicated in the B/L, typically with the same
ger’s departure from the ship (or from the day of death, if it occurs after leaving the ship due to an incident during the voyage). Claims for the loss or damage of personal effects are subject to a one-year time limit. Claims for delayed arrival of the vessel must be filed within six months from the day following the passen - ger’s departure from the ship. Limitations on Liabilities The ML sets liability caps as follows: • for death or injury of a passenger, the carrier’s liability is limited to 250,000 SDR unless the inci - dent is caused by exceptional circumstances like war, piracy or natural disasters, in which case the liability limit increases to 400,000 SDR; • for loss or damage of registered personal effects, the carrier’s liability is limited to 3,375 SDR. How - ever, for vehicles transported by sea, the liability can be up to 12,700 SDR; and • for unregistered personal effects, the carrier’s liabil - ity is limited to 2,250 SDR. Additionally, the ML allows carriers to agree to liability limits exceeding these amounts. However, if the claim - ant proves that the damage resulted from intentional acts or gross negligence on the part of the carrier or its agents, the carrier may not invoke the limitation of liability. Maritime Lien or Maritime Claim for Personal Injury Claims for personal injury of a passenger are recog - nised as maritime claims under UAE law, and they are considered privileged debts according to Article 29 (4) of the ML. 7. Enforcement of Law and Jurisdiction and Arbitration Clauses 7.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading In the UAE, the recognition and enforcement of law and jurisdiction clauses in B/L are subject to specific conditions under UAE arbitration law and Commercial Maritime Law.
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