Source: http://www.jdsupra.com/post/documentViewer.aspx?fid=aec958fd-920a-4049-abf5-5b21885ee6c1
Timestamp: 2017-01-21 21:21:42
Document Index: 685139979

Matched Legal Cases: ['art 3', 'Art 3', 'Art 8', 'art 2', 'Art 3', 'Art 3', 'art 3', 'Art 13', 'art 3720', 'art 3821', 'Art 5', 'Art 5']

DIFC Courts | Jane Lambert - JDSupra
The governments of the United Arab Emirates and Dubai have established a free zone for financial services in Dubai known as the Dubai International Financial Centre ("the DIFC") in the hope that it will become a major financial centre to rank alongside London, New York, Tokyo and Singapore. According to KPMG the DIFC already ranks 7th in its list of the world's leading financial centres. One of the reasons for the DIFC's success is a special jurisdiction in the zone with its own laws and law courts. Although Dubai and the UAE are civil law jurisdictions and their official language is Arabic the laws of the DFIC are in English and based largely on UK statutes and the English common law. The DIFC courts conduct their business in English. Their rules and procedure are based on the English Civil Procedure Rules. Most of the judges of the DIFC courts come from England and Wales or other Commonwealth countries. Most counsel and solicitors from England and Wales can qualify to practise before the DIFC Courts quite easily.
This is the first of a number of articles that members of my chambers intend to write on the DIFC and its Courts. Articles that will appear in the next few weeks will cover confidential information, data protection, domain name disputes, passing off and restrictive covenants. We shall also discuss the IP and technology laws of other jurisdictions in the region.
The reason for our interest in the region is that one of our members intends to move to Dubai shortly. His presence in the region will enable us to offer advisory, drafting and advocacy services on DIFC intellectual property and technology law as well as English and EU IP and technology law to local practitioners. In addition, I shall be available to sit as an arbitrator or act as a mediator in IP and technology disputes. Finally, NIPC Training will offer CPD training in IP, technology and competition law to English and other expatriate solicitors and patent and trade mark attorneys in the region.
Download PDF The DIFC Court Jane Lambert1 The Dubai International Financial Centre (“DIFC”) is a 45 hectare free zone in Dubai for banking, insurance, trading and other financial services. According to the Centre’s website2 it will eventually comprise some 40 towers of offices, flats and hotels with a built up area (including parking) of 4 million square metres and a gross floor area of 2 million square metres. The plan is to accommodate over 45,000 office workers and 32,600 cars. The aim of the DIFC is to create in Dubai a financial services industry on the same scale as London and New York. According to KMPG the DIFC is well on the way to achieving that aim. In its International Financial Centres Competitive Assessment3 KPMG ranked the DIFC seventh in the world behind Singapore, London, New York, Hong Kong and Tokyo but ahead of Frankfurt and Paris and the other financial centres in the Gulf Doha, Manama and Riyadh. One of the reasons for the DIFC’s success identified by KPMG was the special jurisdiction for the resolution of business disputes in the Centre: “In a region characterised by civil law codes, DIFC introduced a common-law framework designed to offer the optimal environment for business growth. All business activity within DIFC is governed by this legal framework with the exception of criminal issues, which are governed by UAE’s federal criminal law (including anti-money laundering law).” 4 The report continues: “The DIFC Courts, the independent judicial system within the financial district, is another 1 Barrister and member of the WIPO Arbitration and Mediation Panels 2 “Facts and Figures” at http://www.difc.ae/difc-district/facts-figures/3 International Financial Centres Competitiveness Assessment Report, KPMG, Dubai 22 Dec 2009 downloadable from http://www.difc.ae/press-centre/press-archive/2009/22-december-20091/4 Page 10 ibid critical offering to the financial services industry. The rules of the DIFC Courts were designed specifically to deal with sophisticated financial transactions conducted within DIFC. Furthermore, the DIFC Courts worked extensively to ensure the highest international standards of legal procedure in order to provide the certainty, flexibility and efficiency expected by global institutions operating within DIFC. The DIFC Courts have developed a bench of internationally renowned judges well versed in commercial disputes.” 5 This DIFC model has been followed by Qatar which has established a Civil and Commercial Court for the Qatar Financial Centre6. The DIFC was established by art 3 (1) of The Law Establishing the Dubai International Financial Centre, No (9) for the year 20047. This is a Dubai law enacted pursuant to a constitutional amendment of the United Arab Emirates8 and federal legislation9. Art 3 (2) and (3) of Law No (9) of 2004 provides for a number of bodies for governing and regulating the DIFC10. including a judicial authority known as the “Dubai International Financial Centre Judicial Authority” 11. Art 8 further provides: “(1) The DIFC Courts shall be formed and shall carry out their functions in an independent manner, in accordance with the provisions of this Law, the other Centre's Laws and the Centre's Regulations. (2) Unless otherwise provided by any other Centre's Laws, the Centre's Courts shall have exclusive jurisdiction to hear and 5 Ibid 6 See the Court’s website at http://www.qfccourt.com/index.php 7 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9415 8 Constitutional Amendment No (1) of 2004 at http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3520 9 Federal Law No. (8) of 2004 Concerning Financial Free Zones (http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3523), Federal Decree Number 35 for the year 2004 To Establish Financial Free Zone in Dubai (http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3534) and Cabinet Resolution No. 28 of 2007 On the Implementing Regulations of Federal Law No. 8 of 2004 Concerning Financial Free Zones (http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9274) 10 Known as “the Centre’s Bodies” (art 2 of Law No (9) of 2004. 11 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9417 determine any claims in which the Centre, the Centre Establishments or any of the Centre's Bodies is party to and also to hear and determine any dispute, arising out of any transaction carried out in the Centre or an incident which took place therein. The President may also establish such juristic committees and arbitration panels as are necessary. (3) The courts of the Emirate shall entertain the prosecution of any crimes that take place within the Centre. (4) The Centre's Courts shall have exclusive competence to interpret this Law, the Centre's Laws and the Centre's Regulations. (5) The Government shall provide the Centre's Courts with sufficient funds necessary to discharge their powers and perform their functions. (6) The Centre's Courts may appoint and employ persons on terms they deem necessary to exercise their powers and perform their functions.” 12 Save for criminal law (including money laundering) which is reserved to the UAE federal courts13, the DIFC’s institutions and other entities carry on business in accordance with laws made for the DIFC by the ruler of Dubai (known as “the Centre’s Laws”) and regulations pursuant to the Centre’s Law made by a president14 appointed by the ruler15 (known as “the Centre’s Regulations”). The provisions of Law No (0) of 2004 relating to the DIFC Courts are implemented by Law No.12 of 2004 in respect of The Judicial Authority at Dubai International Financial Centre16. Art 3 (1) of that Law establishes in the DIFC a Court of First Instance and the Court of Appeal17. The Court of First Instance consists of a single judge. The Court of Appeal comprises a presiding judge and two judges. The Court of First Instance has exclusive 12 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9422 13 Art 3 (1) and (2) of Cabinet Resolution No. 28 of 2007 On the Implementing Regulations of Federal Law No. 8 of 2004 Concerning Financial Free Zones at http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9277 14 The President per art 3 (2) of Law No (9) of 2004 and (http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9417) 15 Art 13 (1) of Law No (9) of 2004 (http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=9427). 16 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3562 17 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3564 jurisdiction over civil or commercial cases and disputes involving the DIFC, any of the Centre's Bodies or any entity doing business in the Centre18. It also has exclusive jurisdiction over civil or commercial cases and disputes arising from or related to a contract that has been executed or a transaction that has been concluded, in whole or in part, in the Centre or an incident that has occurred in the Centre19. As for the Centre’s Laws and the Centre’s Regulations, the ruler of Dubai has enacted a vast body of legislation specifically for the DIFC and these are supplemented by a formidable body of secondary legislation made by the President. These laws and regulations are in English. In many cases they are modelled on UK statutes. They cover such matters as companies, partnerships, employment, real and personal property, contract, implied terms, unfair contract terms, obligations and data protection. Some of those laws codify common law rules. For instance, art 3720 of the Law of Obligations of 2005 codifies the law of confidence and art 3821 the law of passing off. Interestingly, the Contract Law 2004 contains no express reference to consideration22. The Rules of the Dubai International Financial Centre Court 2007 seem to be based on the English Civil Procedure Rules and adopt many of the same concepts23 and terminology24. Judgments are published in full on the DIFC Courts website. The Chief Justice of the DIFC Courts is Michael Hwang, SC, a distinguished Singapore lawyer. The other judges are Sir Anthony Colman and Sir John Chadwick from England, Tan Sri Siti Yaakob from Malaysia, David Williams QC from New Zealand and H.E. Justice Ali Al Madhani and H.E. Justice Omar Al Muhairi from Dubai. Most counsel and solicitors from England and Wales and other common law countries can register to practise as advocates and litigators before the DIFC Courts without difficulty or delay. For further information call Jane Lambert on +44 (0)161 850 0080 or email her on jane.Lambert @nipclaw.com. www.nipclaw.com 18 Art 5A (1)(a) of Law No (12) of 2004 at http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=3566 19 Art 5A (1)(b) of Law No (12) of 2004 20 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=8222 21 http://difc.complinet.com/en/display/display_main.html?rbid=2618&element_id=8223 22 http://difc.complinet.com/en/display/display_viewall.html?rbid=2618&element_id=8670 23 For instance, rule 1.5 of the Rules incorporates the overriding objective. 24 For instance, a person bringing a claim is referred to as a “claimant” rather than a “plaintiff”.