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Arbitration

“We offer our effective and fast services to our clients, saving them unnecessary courts litigations…”

Arbitration is a well-established and widely used means to end disputes .Arbitration is a non-court based dispute resolution process. Unlike litigation, arbitration takes place out of court: the two sides select an impartial third party, known as an arbitrator; agree in advance to comply with the arbitrator's award; and then participate in a hearing at which both sides can present evidence and testimony. The arbitrator's decision is usually final, and courts rarely reexamine it.

Arbitration will also usually be private and substantially confidential. The parties can choose the legal place, (also known as the ‘seat of the arbitration’), and the law of the arbitration, as well as the language in which the process in conducted.

Overview

In Arbitration Practice, consisting of international lawyers with considerable experience of arbitrating public and private law disputes within a variety of regions and industries, either as counsel or arbitrator. Our lawyers regularly write, consult and lecture on arbitration around the world.

Our Expertise

We, at AASC Chartered Accountants, understand the need for a blend of expertise of law and the UAE culture that is required for practicing in the courts. Our lawyers not only have a length of experience of practicing in the courts but also they understand and merge in the culture here which is highly valued at the courts and also has always proved to be very effective in handling of cases.

Our arbitration expertise extends to all types of disputes and industries, with specialists in Trade Banking, Finance, Commodities, Construction, IP, Transport and Shipping Arbitration, all working closely together to prevent and resolve our clients problems. Our Arbitration lawyers have extensive experience in all types of arbitration work including ICSID and UNCITRAL arbitrations and arbitrations before the following:

  • The Dubai International Arbitration Centre (DIAC)
  • The DIFC – LCIA Arbitration Centre
  • Abu Dhabi Commercial Conciliation & Arbitration Centre
  • GCC Commercial Arbitration Centre, Manama, Bahrain
  • The International Court of Arbitration (ICC)

Advantages of arbitration

Businesses choose arbitration over litigation because of its

  • Neutrality
  • Finality
  • Enforceability
  • Procedural flexibility
  • Ability to choose the arbitrators
  • Time and Cost
  • Confidentiality

Neutrality

Court litigation in transnational matters generally has to take place in the courts of one of the parties to a dispute. This also means that the judge(s) will share one side’s nationality, or at least legal education and training. The opposing party or parties may accordingly feel estranged or even discriminated against. At the very least, the procedure, and possibly also the language of the proceedings, will be less familiar to one side than to the other, thus creating a real or perceived advantage for one side.

International arbitration is nationally neutral in the sense that there does not need to be a link between any party’s place of incorporation or residence and the place of the arbitration. The parties can choose any place of arbitration, any applicable law, and any language for their arbitration. All of these elements can be neutral with respect to the parties. The freedom to choose the arbitrators also ensures that the arbitrators will be neutral if that is what the parties desire.

Final, binding decisions

A final and enforceable outcome can generally be achieved only by recourse to the courts or by arbitration. Softer dispute resolution mechanisms have various benefits for appropriate cases, but a successful outcome depends, ultimately, on the goodwill and cooperation of the parties. Goodwill and cooperation are desirable in arbitration as well, but not necessary because the outcome does not depend on the parties reaching an agreement. Rather, the arbitral tribunal is empowered to make a final, binding award.

Court judgements in commercial cases can usually be appealed at least once, often more than once, to higher courts. This is not true for arbitration. There is generally no appeal at all permitted from an arbitral tribunal’s award in an international arbitration. The result is absolutely final, subject only to a request to set aside the award due to procedural irregularities such as an unfair procedure or arbitrator lack of independence.

Procedural flexibility

The arbitration procedure is driven by “party autonomy”, that is choices made by the parties themselves about how they want the dispute to be dealt with. The first choice, of course, is whether or not to use arbitration in the first place. The parties can then choose which kind of arbitration (e.g. administered by an institution or not and which institution), select the seat or place of the arbitration, the language of the arbitration, the applicable law, the number of arbitrators, etc. Importantly, the parties can also select the arbitrators or agree on a method for their selection.

There is also great procedural flexibility within the context of a given arbitration. For example, the parties can choose to have a slow and thorough or a fast and economical arbitration. For obvious reasons, speed, efficiency and costs are usually considered important. Where appropriate procedures are put in place, arbitration can be faster and less expensive than litigation, especially considering that there is generally no appeal from international arbitral awards.

In the absence of party agreement on points of procedure, the parties’ views will nonetheless be considered carefully by the arbitral tribunal when it determines the procedure.

Selection of arbitrators

The parties’ power to choose the arbitrators is a major advantage of arbitration over litigation. It inspires confidence in the individual decision makers and thereby the process. It also means that individuals with the relevant technical or legal expertise, or other desired qualities, will decide the dispute.

Where there is to be a sole arbitrator, the parties often try to agree on the individual, failing which he or she is appointed through an agreed process. Where there are three arbitrators it is typical for each side to nominate a co-arbitrator and for the president to be appointed in the same way as a sole arbitrator is appointed. Alternatively, the parties often empower the co-arbitrators to select the presiding arbitrator.

It is often said that an arbitration is only as good as the arbitrators. Indeed there is no doubt that the quality and experience of the arbitrators will significantly impact the quality of the process and its outcome. It can be important, or at least desirable, that arbitrators possess certain skills and/or even expertise, whether linguistic, technical or legal. They should also be able to dedicate sufficient time to the case and be available for hearings and meetings. Finally, all arbitrators must be, and remain, independent from the parties and impartial in deciding the case. Appointing the right default arbitrators (where the parties are not able to agree on the arbitrators) is a core function for any arbitral institution.

Time and costs

As noted above, arbitration can be faster and less expensive than litigation in the courts. Experienced arbitrators have developed expertise in designing procedures that maximize time and costs efficiency and thereby minimize the disruption to the ordinary business of parties involved in arbitration proceedings. That said, a complex international dispute can take a great deal of time and money to resolve, even by arbitration. Even in such cases, the limited scope for challenging arbitral awards, as compared with court judgments, offers a clear advantage in terms of limiting time and costs. The finality of arbitration ensures that the parties should not be entangled in a prolonged and costly series of appeals.

Confidentiality

Arbitration proceedings and hearings are completely private. Only the arbitrators and the parties (including their lawyers) are permitted to attend, not the general public. Similarly, only the same actors receive copies of the documents, submissions, correspondence and awards that are produced during the arbitration.

Our lawyers have worked on many Arbitration cases including:

  • Joint venture disputes and company/corporate related issues
  • Sale of goods disputes, Distributorship agreements, agency agreements, transport disputes including advice on INCO terms and international trade of luxury vehicles
  • Construction disputes arising out of both the employer-main contractor relationship as well as sub-contractor disputes
  • Disputes regarding the sale, purchase and assignment of property and infrastructure
  • Disputes in respect of letters of credit, ICC Uniform Customs and Practice for Documentary Credits, performance bonds, guarantees, letters of indemnity, banking collateral agreements
  • Bilateral investment treaty claims and matters arising out of international treaties generally
  • Insurance, re-insurance and mutual assurance issues
  • Fraud aspects arising out of international trade

Latest News

  • DIAC to host training on techniques to handle international arbitration cases
  • Dubai International Art Centre rolls out new courses
  • Dubai International Arbitration Centre training course presents a realistic picture of international arbitration
  • DIAC organises 6th Open Arbitration Dialogue: Meet DIAC and its Executive Committee
  • DIAC hosts roundtable meeting with Dubai judiciary
  • IBA Programme in collaboration with DIAC roundtable comes ahead of the upcoming IBA annual conference
  • Cooperation Agreement Between DIAC and the PCA
  • DIAC is pleased to announce the appointment on 18 November 2012 of a new Board of Trustees. The profiles of the new Members can be viewed here
  • Dubai International Arbitration Centre appoints new Director
  • Ajman University's law students visit Dubai International Arbitration Centre
  • International Arbitration Centre holds its fifth successful open dialogue in Seoul
  • Dubai International Arbitration Centre organises 5th open dialogue in Seoul

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