Background
Our client, the Defendant, was represented by the Emirati Advocate Mrs. Awatif Al Khouri of Awatif Mohammed Shoqi Advocates and Legal Consultancy, who personally led the defense in a dispute arising from a settlement agreement entered into between the parties with prior commercial dealings across multiple jurisdictions. The settlement was meant to end those dealings by providing rules for the outstanding obligations between the parties, including share transfers, pending arbitration, and the use of certain commercial rights.
Upon the execution of the settlement, the opposing parties filed proceedings before the Dubai Court of First Instance claiming that our client had breached the agreement. They raised claims relating to alleged failures to comply with both the financial and operational obligations under the settlement agreement.
Our client, represented by Awatif Mohammed Shoqi Advocates and Legal Consultancy, successfully challenged both categories of claim, which led to the dismissal of the entire claim.
Court of First Instance
The Court of First Instance examined the parties’ competing positions alongside the documentary record and expert evidence. On the financial claim, the court found that the contractual conditions required to trigger the relevant payment obligation had not been met, and on the commercial claim, the court found that relevant obligations under the settlement agreement had been breached.
Court of Appeal
Both sides appealed, and the matter was heard by the Dubai Court of Appeal. The court dismissed the financial claim, holding that the contractual condition to that obligation had not been satisfied.
In relation to the compensation claim, the Court of Appeal upheld the first instance ruling, confirming that the agreed compensation clause had been correctly triggered, and that the obligations of our client under the settlement were immediate and unconditional. The court rejected both the defense and the appeal.
Court of Cassation
Our client was able to raise a substantive defense before the Dubai Court of Cassation through the law firm of Awatif Mohammed Shoqi Advocates and Legal Consultancy. The client contended that the settlement agreement did not apply to a particular company interest and that the obligation allegedly breached was limited in scope and did not encompass the entity that the courts had included.
The Court of Cassation accepted this argument. It held that our client had raised a material defense regarding the proper interpretation and scope of the settlement agreement. On that basis, the cassation court set aside the appellate judgment on the compensation clause and remitted the matter to the Court of Appeal for full reconsideration.
Conclusion
This case emphasizes the importance of understanding and making strong legal arguments at each level of the litigation stage. Awatif Mohammed Shoqi Advocates and Legal Consultancy achieved a victory for our client before the Court of Cassation, overturning the compensation award and remitting the matter for fresh consideration, despite the adverse outcome at first instance and on appeal.
