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ADGM Court (A15 v B15) determines Dubai (onshore) as seat where clause states 'UAE' under ICC Rules; res judicata rejected; enforcement adjourned pending Dubai Court of Cassation

Published on: 18 November 2024

Published by a LexisNexis Arbitration expert
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Article summary

A15 Claimant and B15 Defendant [2024] ADGMCFI 0012

What are the practical implications of this case?

The ADGM Court’s ruling carries several practical ramifications for parties and practitioners:

  • Importance of clear arbitration clauses: The ruling highlights the vital need to specify the arbitral seat in contracts. The chosen seat affects the recognition and enforcement of awards, a priority for any claimant or counterclaimant. To reduce the risk of parallel set‑aside actions, parties should expressly state the seat of arbitration in their agreements.
  • Multi‑jurisdictional procedural strategy: Even where an award arises from a carefully drafted arbitration clause, rigorous strategic planning is required for potential multi‑jurisdictional enforcement. This is even more pressing when the clause permits alternative readings, whether regarding the seat of arbitration or other key elements. Practitioners must navigate the interaction between different jurisdictions and appreciate the procedural nuances that may surface.
  • Estoppel and res judicata: In related proceedings before the Umm Al Quwain Court, it had already been decided that Dubai was the seat of arbitration...

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