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.

 

 

 

Preparing Power of Attorney in Dubai UAE

The power of attorney is to be prepared by the law firm and then sent for translation into Arabic and English.

In order for a lawyer to act on behalf a client, it is obligatory for the client to authorize the lawyer of doing so by signing a power of attorney. This will show that the lawyer acting on behalf of the client has full authority to represent the client in all legal matters. It needs to be stamped and attested by the Dubai courts.

The power of attorney will be revoked once it completes its time frame or at the death of the person giving the power or even at the will of the executor by written application, however this is only possible in Abu Dhabi and Sharjah

To use power of attorney made somewhere other than UAE, the following must be done,

a- Translate documents into Arabic
b- Attestation by the foreign office in UAE
c- Legalize documents by UAE Ministry of Justice
d- Signing power of attorney in front of notary in the country of issue
e- Attestation by the foreign office in country of issue
f- Legalize documents by UAE Embassy in country of issue

Franchise Dispute And Litigation in UAE | Litigation Lawyers in Dubai UAE

Litigation is the proceedings in the local courts to defend or enforce the legal rights with help of an attorney.

The dispute will go in the hands of the litigation or arbitration after direct negotiation and mediation failure. However to proceed with arbitration the parties must have agreed to arbitration proceedings in the contract if not then the local courts or litigation is the option to resolve their dispute.

There can be an exception if both parties commit to proceed with arbitration even if not mentioned in the contract can do so but to be precise it is impossible because of damaged goodwill.

For international disputes such as franchise, both parties don’t prefer the litigation method as it might be biased in their proceedings. The local court proceedings favor one party in different ways such as language, procedures, and the advocates.

In litigation, the stronger party is, of course, the locals which is why most parties don’t agree with the litigation method and end up with arbitration for their disputes.

 

 

Franchise Dispute And Mediation in UAE

Mediation has become a popular method in resolving international business disputes which includes franchise dispute and many more.

Mediator is a third party who will get involved once direct negotiation fails in resolving a franchise dispute. The failure will cost both parties as appointing a third party comes at a price.

The job of the mediator will be to assist the parties in reaching a settlement without making any decision instead helping them understand each other’s point of view.

The mediator will summon both parties and listen to their arguments and the case itself furthermore if required will summon each party alone as well.

Their role will include working on sorting out the disputed case areas and areas where they can compromise and agree. The stronger party has of course more chances of winning as compared to weaker party but that can hurt the good will and cost money and time if not settled earliest.

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.

Power of Attorney UAE | POA Service in Dubai

Power of Attorney is the written letter which gives authority or power from one person or company to another to act on their behalf. This transfer of power is usually required when handling issues that are legal, finance or property related.

Due to the composition of the UAE population and the high percentage of expats, it is common for actions or transactions to take place in the absence of one or more parties. This could be due to working locations changing or even after a person has left the UAE.

For any legal matters in the UAE, a Power of Attorney must be given to a law office before they are permitted to represent or act on a client’s behalf. The Power of Attorney needs to be signed by the resident or visitor in front of the Notary Public whilst producing an Emirates ID or Passport.

If power of attorney is issued in another country then it needs to be stamped, attested and legalized by the ministry of foreign affairs and the UAE embassy in the country of issue. The document will need to be translated into Arabic prior to being stamped, attested and legalized in UAE to become effective.

There are generally two the types of power of attorney,
a- General
Full authority to handle all the affairs of an individual or institution is known as ‘general power of attorney’
b- Specific
Where the authority is limited to specified actions that can be carried out, this is known as ‘specific power of attorney’.

Misuse of a Power of Attorney is considered a serious crime in the UAE and can lead to serious charges being brought against the offender.

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