The Aftermath of Covid-19 on UAE Dispute Resolution Process
Posted: Oct 18, 2020
As the 2019 Novel Coronavirus (COVID-19) keeps on spreading over the world, corporate entities or businesses are confronting critical degrees of instability and vulnerability brought about by debilitated financial markets and disturbance to working environment activities and business pipelines.
It is practically sure that such flimsiness and vulnerability will result in a development in the number and different type of questions, as organizations become incapable (or reluctant) to perform existing legally binding commitments and additionally need to re-acclimate to new weights on their finances and tasks.
Corporate Lawyers of Dubai deems necessary to discuss the positive and negative impact of coronavirus on the dispute resolution process in the country and what future holds for disputes and its resolution in UAE.
The current crisis makes a requirement for business and its legal representatives to consider cautiously proper and alternative choices for the productive, opportune and practical dispute resolution processes. They may need to concentrate on modifying their business relationship, re-arranging the agreement, or discovering alternative ways to determine and resolve their conflicts, as opposed to insisting on performance of strict contractual obligations.
This may prompt more interest for mediation, arbitration and conciliation or combination of different methods of dispute resolution. The COVID-19 pandemic is additionally applying more prominent weight for the arbitration process to discover innovative approaches to consolidate more noteworthy utilization of technology, through more utilization of dispute resolution with use of technology or arranging virtual hearings.
In last couple of months UAE most leading arbitration institutes has given rules and procedures to encourage virtual hearings. For instance, Dubai International Arbitration Center, DIFC-London Chamber of Commerce, ADGM-International Chamber of Commerce has shown tremendous efforts in avoiding the further spread of coronavirus and to not delay any proceedings.
Identified with classification, cybersecurity is vital in discretion as the validity and honesty of the arbitration process relies upon it. At the point when an arbitration hearing is led practically, it is significant for arbitrators to talk with the parties or their legal representatives with the point of actualizing a digital convention to follow relevant cybercrime rules and regulation to appropriately govern the hearings.
As one would expect, COVID-19 has prompted a spike in specific sorts of debates or conflicts. The conjuring of force majeure clauses in any agreement, specifically, has seen a huge ascent this year. For instance, in a significant judgment, the Dubai Rental Committee as of late confirmed that COVID-19 is a substantial motivation to end a rental contract, as long as it is proved that COVID-19 has contrarily influenced the party who looks for the early termination of the rental contract.
In this Committee debate, a party became incapable to proceed with the rent for the length of the understanding term. However, the Dubai Rental Committee permitted the proprietor to seek compensation for early termination of the rental contract.
Justice deferred is justice denied. The more prominent and better utilization of innovation in the judicial administration is an unavoidable pattern, and the current pandemic may have altogether pushed the digitalisation procedure much forward, prompting more e-mediation, e-arbitration, online courts and the utilization of Artificial Intelligence in judicial processes in future.
Dr. Hassan Elhais is a legal consultant in Dubai, specializing in the drafting of all statements of claim, memos and consultation on litigation of all manner.