Driver Trett Digest Issue 22 October 2021 - Flipbook - Page 12
CONSTRUCTION LITIGATION
IN THE UAE
THE PURSUIT OF
A PERFECT START,
AND THE ART OF
MAINTAINING
MOMENTUM
Mahmoud Abougabal
Technical Director, Abu Dhabi
12
There are numerous ways in which construction disputes
could end up in litigation: from defective and vague
arbitration agreements to failed ADR1 procedures, and
sometimes even, as a consequence of negotiated contract
provisions.
In one recent example, the Dubai Court of Cassation ruled
an arbitration agreement null and void because for parties
to refer to the use of the FIDIC Red Book in its entirety was
too vague and imprecise. In another2, it was ruled that an
agreement to follow specific amicable settlement procedures
will not prevent parties from directly having recourse to local
courts, should they eventually have jurisdiction.
These situations spell uncertainty for many international
entities. Especially those unfamiliar with the local legal
landscape, the speed in which the process takes place, or
the importance of being consistently ready to either present
your claim or defend your position before court-appointed
experts.
1 ADR: Alternative Dispute Resolution
2 Case 14 of 2008