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Unpaid invoices: Legal options for advisory/consulting services company

Hi there,

I provide advisory/consulting services to my client. The client is based in DMCC, and my advisory company is in Meydan.

Three of my invoices have not been paid, despite sending three email reminders. Two of the invoices are two months overdue, and one invoice is one month overdue.

The contract specifies arbitration in DIFC courts.

What legal recourse do I have, and what should I do?

متميز
شمسة البدواوي للمحاماة والاستشارات القانونية
دردشة
توظيف
اجتماع
3 Apr 2023, 10:53

Hi

You can start by sending them a legal notice and if they don't make the payment even after receiving the notice, we can start with filing the arbitration case in accordance with the contract.

You can contact us by email.

Thanks

3 Apr 2023, 12:02

Thanks Shamsa.

A few follow-up questions. I will understand if you can't answer for commercial reasons -

1. How long does arbitration take in DIAC/DIFC courts? A few weeks or months or longer?

2. What are the prerequisites for sending a legal notice? Do I need to send them written reminders? Document them? Do I have to wait for a certain period of time?

3. What is the likely success rate of sending a legal notice; and then doing arbitration?

3 Apr 2023, 12:03

Thank you.

5 Apr 2023, 05:41

Arbitration case takes at least 6 months to 1 year. As such there is no perquisite to send the legal notice it should be in accordance with the contract. No lawyer guarantees success rate it depends on the merits of the case.

ناصر يوسف الخميس للمحاماة والاستشارات القانونية
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توظيف
اجتماع
3 Apr 2023, 10:58

Hi,

As a preliminary step, we can send them a legal notice and then proceed with arbitration in DIAC Courts as that's where all the arbitration proceedings now take place.

3 Apr 2023, 10:58

Should you need any further legal assistance, please contact us by phone.

3 Apr 2023, 12:02

Thanks Nasser.

A few follow-up questions. I will understand if you can't answer for commercial reasons -

1. How long does arbitration take in DIAC/DIFC courts? A few weeks or months or longer?

2. What are the prerequisites for sending a legal notice? Do I need to send them written reminders? Document them? Do I have to wait for a certain period of time?

3. What is the likely success rate of sending a legal notice; and then doing arbitration?

4 Apr 2023, 05:36

Legal Notice is a preliminary step. It has to be drafted by lawyers and sent from a lawyer's office.

We can assist you with the same. The legal notice would be helpful during the arbitration proceedings as well to show malice on their end and failure of payment even after an alarming reminder.

4 Apr 2023, 05:38

The duration of DIAC proceedings depends completely on the replies from either party and their will to resolve the matter. The award is binding, full, and final.

4 Apr 2023, 05:38

For further legal assistance, call us on phone.

هلال وشركاه محامون ومستشارون قانونيون
دردشة
توظيف
اجتماع
3 Apr 2023, 12:03

Dear questioner,

This advice is subject to the review of the arbitration agreement.

You may file an arbitration case in DIAC, as the DIFC courts do not accept fresh arbitration cases but only enforce existing awards.

Going forward, it is better to reference the DIFC Courts Small Claims Tribunal as the opted jurisdiction and neutral venue (provided the claim is less than AED 500000).

Sample "Any dispute, difference, controversy, or claim arising out of or in connection with this contract, including (but not limited to) any question regarding its existence, validity, interpretation, performance, discharge, or applicable remedies, shall be subject to the exclusive jurisdiction of the DIFC Courts Small Claims Tribunal ("the SCT").

3 Apr 2023, 12:31

Thanks, Nikhat!

A few follow-up questions. I will understand if you can't answer for commercial reasons:

1. How long does arbitration take in DIAC/DIFC courts? A few weeks or months or longer?

2. What are the prerequisites for sending a legal notice? Do I need to send them written reminders? Document them? Do I have to wait for a certain period of time?

3. What is the likely success rate of sending a legal notice; and then doing arbitration?

5 Apr 2023, 07:29

Dear Sir

Yes, you will have to book a consultation.

متميز
الدكتور محمد الحمادي للمحاماة والاستشارات القانونية
دردشة
توظيف
اجتماع
3 Apr 2023, 12:17

Dear questioner,

As long as there is an arbitration clause, you need to proceed in arbitration as per the terms of the contract.

3 Apr 2023, 12:18

However, You need to serve him first a legal notice via the notary public.

3 Apr 2023, 12:21

For my side, I do not prefer arbitration. Anyway, please contact us via WhatsApp.

3 Apr 2023, 12:51

Thanks Ahmed.

A few follow-up questions. I will understand if you can't answer for commercial reasons -

1. How long does arbitration take in DIAC/DIFC courts? A few weeks or months or longer?

2. What are the prerequisites for sending a legal notice? Do I need to send them written reminders? Document them? Do I have to wait for a certain period of time?

3. What is the likely success rate of sending a legal notice; and then doing arbitration?

3 Apr 2023, 13:11

Well, The arbitration will take time depending on how the arbitrator/s handling the case.

The legal notice is a pre-litigation step which is a must as per civil law.

We are sending a notice to mention it in the statement of claim, not a matter of success or failure and we need to mention a fixed period for the notified part's reply, this period should be mentioned in the contract, so that, you need to review the contact's terms and conditions.

مكتب أحمد محمد بشير للمحاماة والاستشارات القانونية
دردشة
توظيف
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4 Apr 2023, 03:51

Dear questioner,

Considering the fact that the contract has an arbitration clause, your only legal option is to initiate a legal suit before DIFC courts.

متميز
إيمان آل علي للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
4 Apr 2023, 06:20

Hi there,

We can assist you, if you wish to open a case against them, you will have to first inform them and give them prior notice of your intent to take legal action (Legal Notice).

However, you would need to look at your contract to see if there are any procedures for Notices or Disputes. If there are, proceed accordingly.

For any further assistance, you may contact us on phone or WhatsApp.

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