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PRACTICE NOTES
As in any arbitration, it is important that the parties understand the costs that are likely to be involved in the case and when they are likely to need to pay those costs. There are two elements to costs: • costs of the arbitration, and • each party’s own legal costs References to articles in this Practice Note are to articles in the arbitration rules of the Dubai International Arbitration Centre (DIAC and the DIAC rules). Costs of the arbitration The costs of the arbitration include (Article 36): • DIAC’s administrative fees for the claim and any counterclaim • fees and expenses of the tribunal • fees and expenses of any expert appointed by the tribunal • fees and expenses of the legal representatives and any expenses incurred by those representatives, and • any other party’s costs as assessed and determined by the tribunal When are the costs of the arbitration to be paid? Registration fee On filing the Request for Arbitration or any counterclaim, the registration fee of Rhs 5,000 must be paid to DIAC.
PRACTICE NOTES
All references to Articles in this Practice Note are to Articles of the Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC rules) Under the DIAC Rules, the tribunal has the power to decide on the rules of evidence to be applied including admissibility, relevance or weight of any material tendered (Article 25.2). Seat and place of hearings Initial seat The DIAC Rules provide that, absent an agreement of the parties to the contrary, the seat of the arbitration shall initially be the DIFC (the default seat under the 2017 Rules was Dubai). However, tribunals retain the power to finally determine the seat of arbitration, having regard to any observations from the parties and any other relevant circumstances (Article 20.1). Hearings The DIAC Rules 2022 expressly provide for virtual hearings. Tribunals have the authority to decide whether the hearing shall be held ‘in person, by telephone or through any other appropriate means of virtual communication including videoconferencing’ (Article 26.1). Documentary evidence The tribunal may order a party to produce documents or other
PRACTICE NOTES
This Practice Note concerns the expedited formation of the tribunal and emergency arbitration procedures under the 2022 Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC Rules). What if I need the arbitrator to be appointed quickly? Expedited formation of the tribunal Under the DIAC Rules, a party may apply to DIAC for expedited formation of the tribunal (Article 32). The application, which does not have a prescribed form, is made in writing copied to all other parties and setting out the specific grounds for the exceptional urgency that requires the expedited appointment of the tribunal. The filing of an application for expedited formation of the tribunal does not attract a separate filing fee. A party can make such an application where: • the amount in dispute is less than Dhs1m (exclusive of interest and costs) • the parties agree in writing to the expedited procedure • the case is one of exceptional urgency as determined by DIAC Arbitration Court, or • if DIAC Arbitration Court considers it appropriate DIAC
PRACTICE NOTES
Interim and conservatory measures from the tribunal The tribunal in an arbitration under the Dubai International Arbitration Centre Arbitration Rules (DIAC and the DIAC Rules) has the power to issue provisional orders or take any other interim or conservatory measures (including injunctions) that it deems necessary, including to conserve goods which form part of the subject matter in dispute (Appendix II, Article 1). For example, in a dispute between a shipbuilder and a purchaser where the purchaser is reclaiming advance payments following the termination of the contract, the purchaser may wish to prevent the shipbuilder from selling the completed vessel or from selling
PRACTICE NOTES
All references to Articles in this Practice Note are to Articles of the Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC rules) An arbitration under the DIAC Rules is commenced by the claimant filing a Request for Arbitration (the Request) with DIAC (Article 4.1 of the DIAC Arbitration Rules). For more information on the Request, including what it must contain see Practice Note DIAC—starting an arbitration. How do I respond to a request? The Request will be served on the respondent by DIAC. The first step is to check that the Request has complied with the DIAC Arbitration Rules, notwithstanding that this should also have been done by DIAC. If the Request does not comply with the Rules, then the arbitration has not been validly commenced. Assuming the Request complies with the Rules, you have 30 days from receipt of the Request from DIAC to file an Answer to the Request (the Answer) (Article 5.1). If this is not sufficient time then it is possible to make an application
PRACTICE NOTES
All references to Articles in this Practice Note are to Articles of the 2022 Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC Rules). The DIAC Rules in force on the date of commencement of DIAC arbitration proceedings (and any subsequent amendments to the DIAC Rules) shall govern the arbitration, unless the parties have expressly agreed to submit to the DIAC Rules in effect on the date on which the underlying agreement to arbitrate was entered into (Article 2.3). Prior to commencing an arbitration Before commencing an arbitration under any set of rules or an ad hoc arbitration, consider the following issues: • does the arbitration clause on which you rely cover the entirety of the dispute you are raising? • have the pre-arbitration steps (if any) been triggered, exhausted and properly documented? • are there any limitation and prima facie issues of contract law formation, interpretation and performance to consider in view of the applicable law(s) • is there likely to be a jurisdictional challenge? While there is little you can do about
PRACTICE NOTES
All references to Articles in this Practice Note are to Articles of the Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC rules) A tribunal is likely to make several awards during the course of the arbitration, be they interim or partial. All awards (as opposed to orders) are subject to the requirements set out below (save for where it specifically states that it relates to the final award only). What an award must contain An award must: • be in writing (Article 34.2) • state the date on which it was made (Article 34.4 (j)) • state the seat of the arbitration (Article 34.4 (d)) • state the reasons on which it was based (unless the parties have agreed otherwise and the law applicable to the arbitration does not require reasons) (Article 34.4 (g)), and • be signed by the tribunal. Article 34.6 allows tribunals to sign the award electronically (subject to the requirements therein, in particular the mandatory provisions of the procedural law applicable to the seat of the arbitration, and after consulting
PRACTICE NOTES
All references to Articles in this Practice Note are to Articles of the Arbitration Rules of the Dubai International Arbitration Centre (DIAC and the DIAC Rules) As under all major institutional rules, the constitution of the arbitral tribunal under the DIAC Rules will be determined by the arbitration agreement between the parties (Article 10.1). Under the DIAC Rules, there are three different appointment scenarios: • appointment of a sole arbitrator • three-member tribunal—If there are to be three arbitrators, then each party will nominate one arbitrator and, unless the parties have agreed otherwise, the third arbitrator who shall act as chairperson will be nominated by the two party-nominated arbitrators for appointment by DIAC, and • if the arbitration agreement does not state whether there is to be one or three arbitrators, then DIAC’s default rules will apply, such that the Tribunal shall consist of a sole arbitrator, unless DIAC determines in the circumstances of the case that three members is appropriate (Article 10.2) Sole arbitrator If the parties have provided that there is to be
CHECKLISTS
This Checklist concerns Dubai International Arbitration Centre (DIAC) proceedings pursuant to the DIAC Arbitration Rules 2022 effective 21 March 2022 (the DIAC Rules). It highlights key procedural steps and time limits from pre-commencement considerations and emergency and expedited procedures through to written submissions, evidence, hearings, awards and costs, and should be read alongside the DIAC Rules. For further practical guidance, see DIAC arbitration—overview. Before commencing the arbitration • assess any applicable limitation periods and/or contractual time bars under the substantive law governing the dispute (general principle; not governed by the DIAC Rules) • confirm the parties have agreed to submit their existing or future dispute to DIAC (or the Dubai Chamber of Commerce and Industry), so the arbitration is deemed to be conducted under the DIAC Rules (Article 2.1). • consider whether you need emergency relief before the tribunal is constituted and/or interim measures from the tribunal once constituted, including measures to preserve assets, preserve evidence, or seek security for costs, and/or interim measures from a judicial authority (Appendix II, Articles 1 and 2) • determine the number of arbitrators
PRACTICE NOTES
This Practice Note considers the effect of the replacement of the DIAC Arbitration Rules 2007 with rules in 2022 and the effect of Decree No 34 of 2021 Concerning the Dubai International Arbitration Centre (Decree No 34). Introduction Dubai International Arbitration Centre (DIAC) has issued the DIAC Arbitration Rules 2022 (2022 Rules). The 2022 Rules came into effect on 21 March 2022, replacing the previous DIAC Arbitration Rules 2007 (2007 Rules). The 2022 Rules followed Decree No 34 of 2021 Concerning the Dubai International Arbitration Centre (Decree No 34), which restructured Dubai’s arbitration framework by abolishing the DIFC Arbitration Institute (DAI) and the Emirates Maritime Arbitration Centre (EMAC) and transferring their functions to DIAC. Decree No 34 provides that arbitration agreements referring to DAI or EMAC remain valid and effective, with DIAC substituted as the administering centre for disputes arising under those agreements. Following the abolition of DAI, legacy references to the DIFC-LCIA Arbitration Centre may also need to be considered. The 2022 Rules represent a substantial
NEWS
The Dubai International Arbitration Centre (DIAC) has announced a landmark partnership with Paris-Panthéon-Assas University. The university is recognised as France’s first and oldest law university. This collaboration aims to promote knowledge exchange and enhance initiatives related to international arbitration, ultimately strengthening the legal community's understanding of arbitration.
NEWS
The Dubai International Arbitration Centre (DIAC) has announced the signing of a Memorandum of Understanding (MoU) with the Vietnam International Arbitration Centre (VIAC). This forms part of DIAC's strategy, and is one of 12 MoUs signed, enabling DIAC's aim to make Dubai a 'global destination for dispute resolution'.