Summary:

• The first non-DIFC case has now been heard in the DIFC Courts’ Small Claims Tribunal.
• The matter concerns the non-payment of an invoice between two Dubai-based companies.
• SCT can hear claims up to 500,000 AED
• Procedures are in English and 90% of cases get settled in three weeks
• The DIFC Courts provides a cost-effective forum, especially for SME's.
• SME’s should contact a lawyer to assist when the disputed amount is at high end of the cap

SME's, Companies and individuals in the region have more options for resolving a legal dispute since the first non-DIFC case has now been heard in the DIFC Courts this January.

The DIFC Courts' Small Claims Tribunal (SCT) recently decided a case between two Dubai-based parties that had no connection to the DIFC to settle a matter concerning the non-payment of an invoice. So long as the parties agree in writing, the SCT can hear any civil and commercial claims up to 500,000 AED (such as contract claims and debt collection) and employment claims without a cap on the amount in dispute.

The SCT provides a speedy and efficient forum, in English, with simplified legal procedures. More than 90% of the cases are settled amicably (by Consent Order) in the first consultation with an SCT Judge and within three weeks from the date the claim is lodged with the DIFC Courts. If the dispute is not resolved in the consultation stage, a hearing before another SCT Judge will take place within a week with the judge rendering an enforceable DIFC Courts' Order.

With procedures that are a simple and efficient, the DIFC Courts provides a cost-effective forum, especially for SME's. However, while it is true that parties can file their claims before the DIFC Courts SCT without representation, when the disputed amount is towards the high end of the cap, we would still suggest companies to consult with their lawyers before approaching the DIFC Courts to avoid any disappointment.

Your lawyers will in fact be able to give preliminary advice and assistance on the correct procedures to follow, and in particular:
•     Determining whether your claim or counterclaim can be brought in the SCT
•     Drafting forum selection clauses in new and existing Agreements
•     Lodging the claim and following up with the DIFC Courts
•     Preparing for the consultation and hearing
•     Enforcing SCT Orders

Ghada Audi, Head of Disputes Resolution