KUWAIT Law and Practice Contributed by: Dr Fawaz Alkhateeb, Taher Group Law Firm Co
arrangement is a hybrid fixed fee and contin- gency model, wherein the law firm procures a fixed sum for its representation, in addition to a percentage amount from any settlement, usually around 10–15%, although this may vary based on the law firm. 2.7 Time Limit for Obtaining Third-Party Funding No time limits are established for obtaining third- party funding. There are no particular laws or procedural regu- lations in Kuwait that compel parties to take any actions prior to filing a lawsuit or that dictate pre-action behaviour. Nonetheless, parties fre- quently engage in pre-action letters or talks to settle disagreements without going to court. Parties may choose to actively participate in pre- action activities, such as drafting a pre-action letter, trying mediation, or settling the dispute through negotiation, even though there are no formal legal obligations. Although responding to a pre-action letter is not legally required of the potential defendant, it is frequently regarded as a wise move towards settling the issue. 3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct While Kuwaiti law does not regulate pre-action conduct, parties should nevertheless exercise caution in how they behave during the dispute resolution procedure. If the case goes to litiga- tion, the court’s opinion of the parties involved may be affected by their refusal to collaborate or participate in good-faith talks.
In addition, depending on the subject matter of the litigation, there may be specific and unique pre-action conduct that is required. For instance, a creditor, in line with Article 167 of Law No 38 of 1980 pertaining to Civil and Com- mercial Procedures, is obliged to initially request the debtor to fulfil their commitment, providing at least a five-day notice period. After this period, the creditor should proceed to seek a perfor- mance order from either the judge responsible for partial matters or the head of the court divi- sion. 3.2 Statutes of Limitations Notifications are pivotal in the initiation and continuation of a lawsuit against the defend- ant. Consequently, Decree-Law No 38 of 1980, which regulates limitation periods, was enacted to efficiently clarify this subject. Starting with the notification process, Articles 4, 6, 9, and 17 assert that proper execution of the notification is fundamental to any litigation pro- cess. Failure to adhere to the procedures could lead to nullification of the litigation process. Notification delivery is deemed valid only if received directly by the defendant at their per- sonal residence (as listed on their Civil ID) or at their workplace. It can also be received by their legal representative, or family relatives residing at the same addresses. If the defendant is not found at their workplace, the notice should be delivered to the company’s management representative. If the defendant is not in Kuwait, a diplomatic notification must be executed by the notification officer, as per Article 18.
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