Arbitralis ADR

OverviewMulti-tiered dispute resolution clauses (often described as escalation clauses, waterfall provisions, or ‘ADR-first’ mechanisms) are a defining feature of modern commercial contracts, particularly in the construction, infrastructure, and energy sectors. These clauses require parties to follow a sequence of agreed dispute resolution steps before commencing arbitration or litigation.Typical stages include:•referral to an engineer, contract administrator, or expert;•senior management negotiations;•mediation or conciliation; and/or•other structured pre-arbitral procedures.The use of these clauses offers advantages, but also present practical challenges. They may allow parties to a dispute on the threshold of arbitration a structured and safe period of time within which to attempt to resolve their disputes, potentially forestalling expensive arbitration proceedings. Failing complete resolution of the disputes, the use of such clauses may narrow the issues between the parties; informative of potential time and cost savings. The potential drawbacks include a delay in the commencement

IntroductionThis practice note examines the ‘Without Prejudice’ (WP) principle under the onshore civil law of the United Arab Emirates (‘UAE’), its policy underpinnings, and its application in Dubai-seated arbitration, following the recent Dubai Court of Cassation Case (DCC Case) No. 486/2024.The WP principle has old roots in English common-law. One of the most cited common law decisions on WP in communications, the UK Court of appeal case of Walker v Wilsher (1889) 23 QBD 335 upheld a strict version of WP in the 19th century. By fear that the whole object of the limitation would be destroyed, the Appeal Court concurred, that it would be ill-fated for the courts to allow in evidence the acts of litigants on letters written without prejudice. In the 19th century, no exemption existed in respect to costs. The concept of ‘without prejudice save as to costs’ originated much later in the 1975 English