Dispute resolution hampered by court system

RELATED ARTICLES: Emaar Indian unit disputes fines over Games delay | Dispute boards: the missing link? | How to solve construction disputes

Dispute resolution in the construction industry in the face of the downturn is hampered by a court system that is “overloaded and slow”, said Patton Boggs partner Kenneth Reisenfeld at the Construction Week conference in Abu Dhabi.

Any legal strategy has to take into account the Dubai courts, the DIFC courts and the special Dubai World tribulations. “The local courts have their major defects,” said Reisenfeld.

Problems include the translation of technical documents, which can incur substantial costs, and the reliance on court-appointed experts who might not have the relevant expertise.

Reisenfeld said the UAE is not taking advantage of the dispute resolution mechanisms in the FIDIC suite of contract documents, for example.

He said that “local institutions are becoming effective, and I am very impressed.” He referred to the Dubai International Arbitration Centre, the Arbitration Centre associated with the Qatar Chamber of Commerce, and the Abu Dhabi Commission of Conciliation and Arbitration.

"There is a move towards regional arbitration centres being used more and more, with the Dubai and Qatar centres gaining prominence. However, these local institutions have an element of uncertainty, as they are relatively new, and it is unsure how the courts will deal with them," said Reisenfeld.

Advertisement

FEATURED COMMENT Please click here to comment on this article