Regarding UAE arbitration proceedings, businesses must be fully aware of the procedures involved—from the initial stages to the handling of evidence and the involvement of third parties. This blog offers insights into what happens during arbitral proceedings, specifically focusing on key aspects like impleader, intervention, and evidence management.
Impleader and Intervention: Bringing Third Parties into Arbitration
Arbitration is typically between the parties who agreed to it. But what happens when a third party needs to be involved? Federal Law No. (6) of 2018 addresses this scenario through impleader and intervention.
What Is Impleader?
Impleader refers to the process where one of the parties requests the inclusion of a third party into the arbitration. This is particularly relevant when the third party’s interests are closely tied to the subject matter of the arbitration. However, there’s a crucial caveat: the third party must be part of the original arbitration agreement.
For example
Suppose Company A and Company B are in arbitration and believe that Company C’s involvement is essential due to its role in the contract. In that case, they can request the Arbitral Tribunal to include Company C in the proceedings. The Tribunal must give all parties, including the third party, an opportunity to present their statements before deciding.
Intervention is similar but slightly different from impleader. Here, the third party themselves request to be part of the arbitration. They may feel that the outcome could significantly affect their interests, and thus they seek to participate. As with impleader, the Tribunal must ensure that all involved parties, including the intervenor, are heard.
Service of Process
Effective communication is vital in arbitration, and Article (24) of the UAE Arbitration Law details how the service of process should be conducted.
How Is Service of Process Handled?
The process involves delivering legal documents to the parties involved. The law outlines that written communication is considered delivered if handed over in person or sent to the party’s business or residential address. If these addresses are not known, after reasonable effort, sending documents to the last-known address via registered mail or courier is sufficient.
This provision is crucial because it ensures that all parties are informed and have the opportunity to respond, maintaining the fairness of the arbitration process. For instance, emails or faxes can also serve as valid communication forms, providing proof of delivery. And the message is sent before 6:00 PM in the recipient’s time zone.
Waiver of the Right to Object
Article (25) emphasizes the importance of timely objections in arbitration. Suppose a party knows about a violation of the arbitration agreement or a non-mandatory provision of the law. But continues with the proceedings without objecting within seven days. In that case, they waive their right to object later.
This is a critical point for businesses to note. For instance, if you realize that UAE arbitration proceedings are not following the agreed-upon procedures, you must raise the issue immediately. Failing to do so within the specified timeframe means you lose the right to challenge this violation later.
Gathering, Presenting, and Expert Testimony
Evidence plays a pivotal role in arbitration, and the UAE Arbitration Law provides clear guidelines for handling it.
Document Submission and Translation
- Articles (31) and (29) address the submission of documents and the language of arbitration, respectively. Parties are allowed to submit documents to support their claims or defenses. These can include contracts, emails, financial records, or any other relevant materials. If the arbitration is conducted in Arabic, all documents must be translated unless otherwise agreed upon.
- Moreover, the Arbitral Tribunal has the authority to request original copies of documents and can mandate translations to ensure that all parties fully understand the evidence presented.
Role of Experts in Arbitration
- Sometimes, the Arbitral Tribunal might need an expert’s opinion on specific technical matters. Article (34) permits the appointment of one or more experts to provide reports on particular issues. The Tribunal defines the expert’s responsibilities and deadlines. And the parties must provide the necessary information to facilitate the expert’s work.
- Experts are expected to be impartial and independent. And their reports are shared with both parties, who are given the opportunity to respond. If needed, the Tribunal may hold hearings to discuss the expert’s findings.
The Court’s Role
In some cases, the Arbitral Tribunal may need assistance from the court, especially when obtaining evidence that is difficult to acquire. Article (36) allows the Tribunal to seek help from the courts to order the production of evidence, summon witnesses, or ensure the presence of a third party holding crucial documents.
For example, if a third party not involved in the arbitration holds a key piece of evidence, the Tribunal can request the court’s assistance to obtain this evidence. The court’s involvement ensures that all necessary evidence is available to make a fair decision.
Conclusion
By following these procedures carefully, businesses can ensure that their rights are protected and that UAE arbitration proceedings remain fair and just. Consulting with a Dubai lawyer or legal expert specializing in UAE arbitration law can be invaluable if you find yourself involved in such proceedings. They can guide you through the complexities and help safeguard your interests.