Tag: business disputes

B2B Dispute dubai UAE

How To Resolve Business To Business Dispute In Dubai UAE – The Legal Process

How To Resolve Business To Business Disputes In Dubai UAE – Know The Legal Process

The Business Protection Department (BPD) is a newly established branch of the Department of Economic Development (DED) of Dubai, dedicated to resolving commercial disputes in the UAE. It was set up in answer to the growing need for a suitable method of assisting businesses with facing commercial issues raised against each other and arriving at an amicable settlement.  This is where a corporate lawyer in Dubai would be of great help as this is a concern that cannot be overlooked as commercial disputes do not fall within the purview of the present dispute resolution authority, the Commercial Control and Consumer Protection Department (CCCPD), resulting in the aggravation of supposedly trivial matters arising among businesses.

The responsibilities of BPD are the provision of a “National Dispute Settlement Service” in Dubai and the dissemination of educational information to businesses.

As a dispute settlement service provider, BPD attends to the complaints of entities holding a Dubai business license. As an educational authority, BPD organizes workshops and conferences and even distribute literature to increase business literacy among Dubai-licensed entities.

BPD’s Jurisdiction

Being a sub-department of CCCPD, the jurisdiction of BPD is limited to disputes between businesses licensed in Dubai and having a minimum capital of AED 200,000/- and its only objective is to assist the Dubai Courts. Thus, it is considered as an Informal Resolution Body.

In line with this, BPD can mediate between international traders if they have a DED license or branch license in Dubai UAE.

Furthermore, the disputes addressed by BPD are only those relating to commercial concerns. Hence, disputes on insurance, banking, real estate or labor matters are not included.

Lastly, BPD does not serve as a tribunal as it was established to mediate between businesses licensed in Dubai in order for them arrive at acceptable agreements.

Procedure for Filing Complaint

There are three ways companies with a DED license or their representatives can file a complaint with BPD – through email, through calls or manually by visiting a DED branch of CCCPD. Supporting documents must be provided and a non-refundable fee of AED 2,020/- (at the time of writing this article) must be paid.

Once the complaint received, it will be reviewed by BPD lawyers who will determine if the case filed is within the jurisdiction of BPD. BPD lawyers will also assess if the dispute can be resolved by BPD acting as a mediator or referring the matter to another suitable authority.

Should the complaint be found acceptable by BPD arbitrators, the concerned persons will be contacted for the initial conference which can be conducted through phone call or a personal meeting. It is important to note that the parties are not required to be present in Dubai at the time of the Mediation Conference.

The processing time for case resolution is ten business working days, but there could be an extension based on the requirements and exigencies of the case.

Judgments and Appeals

Decisions made by BPD are final and cannot be revoked or amended by filing an appeal. However, the parties are not restricted by these decisions as they are discretionary and not binding. Both parties have the option to bring the matter before relevant judicial authorities.

The method of resolving disputes applied by BPD can be considered as necessary approach rather than a formal procedure. Reliable technical knowledge and an adept understanding of the disputes are the basis of the decisions passed. Furthermore, since the time of its establishment, BPD has successfully handled cases, but precedents are not involved in the decisions passed.

For businesses engaged in commercial activities, DED still remains as the main licensing authority in Dubai. BPD is a sub-department with the capacity to block or temporarily suspend the license of entities registered with DED. BPD also has the authority to impose penalties including fines on parties should they fail to attend a mediation conference or comply with the decisions passed by BPD after their acceptance of the mediation process.

Businesses can seek the help and advice of legal consultants in Dubai for a better understanding of the roles, jurisdiction and processes of BPD.

 

 

 

franchise negotiation

Franchise Dispute and Negotiation in UAE

Franchise Dispute and Negotiation in UAE

Franchise is the extension of a business which is distribution of goods and services in countries with their name and license.

Disagreements happen at some point in time in any relationship but what will happen next? Will it get resolved or become worst.

Like any other dispute franchise dispute is also due to the disagreement between franchisee and franchisor which if not resolved can lead to a costly path.

Franchise dispute may happen if the franchisee disagrees with high price for the products and services or the new product line or lacks adequate support or is too controlling.

The easy and economical solution or the way out is that both parties discuss the issues and try to resolve prior to getting third party involved.

If third party gets involved so do emotions and money! The best way to go about it is to be open and making some compromises. Goodwill of the parties is likely to lead to a fair settlement.

It should not be about who wins or who losses in a dispute when it arises instead it should be about understanding each other’s concerns and compromising on equal terms.

business dispute law in dubai

Business Disputes in the UAE

Business Lawyers in Dubai | Contact Lawyers for Business Disputes in UAE

Commercial disputes between companies, companies and customers or even between partners can cause a great deal of distress. They can also , in some instances lead to loss of valuable time, lost business and even bring about the collapse of a business venture in its entirety. Generally, amicable settlement of such a dispute would be beneficial to all parties in its speed and efficiency, even when at times it feels like a compromise you may not want to make. Understanding the ‘bigger picture’ and the potential damage of a protracted dispute is often much clearer in hindsight (when it’s too late). To that end, below is the list of top tips to help resolve a dispute:

a) Gather as much evidence as you can through witness statements in the initial stages; don’t forget, the people involved may be expats and may not be around later to provide the supporting evidence required. Such evidence is useful in determining the events of a situation but may not be necessarily favored for use in court where evidence of fact carries more weight (contracts and breaches of contract terms). Such evidence though is very useful in assisting your legal counsel to effectively drafting each memorandum (the submissions made to court for a case).

b) Try to negotiate with the other party/parties and have a strategy for what you would like to achieve from the discussions. If in your communications a response is requested by email within a certain period, try and follow that to avoid adding complications to the situation that detract from the main issues. Stay on topic. You are attempting to resolve the situation rather than create new arguments or debates.

c) The dispute should be managed by one person from the company, as the central point of contact and the person responsible for taking the required actions. This helps reduce the risk of contradiction or confusion that can easily come about from the different interpretations of the same information that are often present. This also helps to keep the correct focus on what you are looking to achieve and will assist with a clear and clean hand-over to your lawyers should they need to become involved.

d) If you need to extract evidence from a company asset (computer, laptop or smart phone for example) it is advisable to seek professional help to recover it. This limits the risk of not only losing the information but also the risk of suggesting the information has been manipulated or tampered with.

e) It seems an obvious point but one that is all too frequently ignored. Always read and understand every element of a document before you sign your name to it (particularly if it is not in your first language). By signing, you are agreeing to the content which may bind you personally and or the company you represent to actions and liabilities.

f) Although many legal documents in the UAE will have this phrase as a point of ‘best practice’, it does not carry the same legal authority in the UAE system. Without Prejudice is used in negotiations in other countries to ensure concessions made or information shared during negotiation cannot be used against you if a case goes to court as specific evidence. It can be used against you in the UAE regardless of whether the term was used.

g) UAE law favors documentary proof over and above oral (spoken) statements. There is no dramatic court room cross examination as seen in the movies, cases in the UAE are largely fought to a written strategy where the power, structure and content of the legal argument in writing will have the biggest influence on the outcome.

h) When terminating a contract, seek professional legal advice. There are often elements that can remain open for interpretation or action should this not be done in a way that actually closes the contract obligations between the parties. Obvious examples would include specified warranty periods or retention payments that may exist after the contact termination.

i) If you are going to need the support of good lawyers, get them involved as early as possible. Experience in dealing with these matters can avoid costly delays and the possibility of saying or writing the wrong thing that can alter the course of the negotiation and impact the liability to which a party is held. Delaying can also cost you more as there may be significant extra work to repair the damage done before bringing in the experts.