Brookfield Multiplex Constructions LLC v (1) DIFC Investments LLC (2) Dubai International Financial Centre Authority [2016] DIFC CFI 020 (28 July 2016)

Brookfield Multiplex Constructions LLC v (1) DIFC Investments LLC (2) Dubai International Financial Centre Authority [2016] DIFC CFI 020 (28 July 2016)

The pursuit of proceedings in the non-DIFC Dubai Court for appointment of an expert does not breach the arbitration agreement, as such proceedings are procedural and do not affect substantive rights; therefore, there is no basis for granting an anti-suit injunction. DIFC Courts have jurisdiction to grant anti-suit injunctions even if the seat of arbitration is not DIFC, but would only exercise such jurisdiction in exceptional circumstances, which are not present here.

Citation
[2016] DIFC CFI 020
Parties
Claimant: Brookfield Multiplex Constructions LLC; Defendant: DIFC Investments LLC; Defendant: Dubai International Financial Centre Authority
Jurisdiction
United Arab Emirates
Judgment Date
28 July 2016
Procedural Posture
Part 8 Proceedings / Judgment on Interim Anti Suit Injunction and Declarations
Outcome
Interim anti-suit injunction refused; declaration of binding arbitration agreement to be made if undertakings not given.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Jurisdiction of DIFC Courts, Interim Remedies, Preservation of Evidence
Arbitration Civil Procedure Jurisdiction Anti Suit Injunctions Arbitration Agreements Jurisdiction of DIFC Courts Interim Remedies Preservation of Evidence

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Parties

Brookfield Multiplex Constructions LLC

Claimant

DIFC Investments LLC

Defendant

Dubai International Financial Centre Authority

Defendant

Procedural Posture

Part 8 Proceedings / Judgment on Interim Anti Suit Injunction and Declarations

Legal Issues

  1. 1 Whether pursuit of proceedings in non-DIFC Dubai Courts breaches the arbitration agreement
  2. 2 Whether DIFC Courts have jurisdiction to grant anti-suit injunctions
  3. 3 Whether the seat of arbitration is DIFC or non-DIFC Dubai

Ratio Decidendi

The pursuit of proceedings in the non-DIFC Dubai Court for appointment of an expert does not breach the arbitration agreement, as such proceedings are procedural and do not affect substantive rights; therefore, there is no basis for granting an anti-suit injunction. DIFC Courts have jurisdiction to grant anti-suit injunctions even if the seat of arbitration is not DIFC, but would only exercise such jurisdiction in exceptional circumstances, which are not present here.

Court Disposition

Interim anti-suit injunction refused; declaration of binding arbitration agreement to be made if undertakings not given.

Orders

  • Refusal of interim anti-suit injunction sought by Brookfield
  • Declaration of binding arbitration agreement between Brookfield and DIFCI if undertakings not given