Case Summary in DIFC Courts, Small Claims Tribunal

Court: Dubai International Financial Centre Courts, Small Claims Tribunal

Introduction: In the case of [A] v [B] [2024] DIFC SCT, the Dubai International Financial Centre Courts’ Small Claims Tribunal addressed a dispute concerning the non-payment of invoices. Natalie, the claimant, alleged that Nola, the defendant, had failed to fulfill payment obligations outlined in an Engagement Agreement dated November 23, 2023.

Jurisdictional Challenge: (A) contested the jurisdiction of the DIFC Courts, citing various grounds including lack of personal connection to the DIFC, nature of services rendered, and absence of an opt-in jurisdiction clause.

Court’s Decision: The court dismissed the jurisdictional challenge, affirming its jurisdiction over the matter. It emphasized the existence of a clear agreement between the parties designating the DIFC Courts as the exclusive jurisdiction for disputes arising from the Engagement Agreement.

Key Points:

• The dispute stemmed from a breach of the Engagement Agreement, which expressly stated the DIFC Courts’ jurisdiction.
• The court deemed the relationship between the parties as commercial, falling within the DIFC Courts’ jurisdiction.
• Article 5(A)(2) of the Judicial Authority Law No. 12 of 2004 supported the court’s decision, allowing jurisdiction when parties agree in writing to file a claim with the DIFC Courts.

Conclusion: The court upheld its jurisdiction, dismissing the challenge raised by the defendant. This case underscores the importance of clear contractual agreements regarding jurisdiction, especially in cross-border commercial disputes.

Outcome: The DIFC Courts asserted jurisdiction over the dispute, providing clarity and resolution to the matter at hand.

Written by

Suhail Rana | Ibrahim Al Banna Advocates & Legal Consultants