Label Labs FZ LLE v Five International Hotel Management LLC [2025] DIFC CFI 032 (28 July 2025)

Label Labs FZ LLE v Five International Hotel Management LLC [2025] DIFC CFI 032 (28 July 2025)

Immediate judgment was not granted because, despite doubts about the bona fides of Five International's defence, the court found that the appropriate course was to require payment of the principal sum into court as a condition for defending, and to proceed under Part 7 procedure. The application for immediate judgment was dismissed on this basis.

Citation
[2025] DIFC CFI 032
Parties
Claimant: Label Labs FZ LLE; Defendant: Five International Hotel Management LLC
Jurisdiction
United Arab Emirates
Judgment Date
28 July 2025
Procedural Posture
Commercial Contract Dispute / Application for Immediate Judgment Under Part 24 DIFC Rules; Order With Reasons
Outcome
Conditional order: Application for immediate judgment dismissed if defendant pays AED 1,081,452.79 into court within 21 days; otherwise, judgment for claimant for that sum plus interest and costs.
Legal Topics
Immediate Judgment, Part 8 and Part 7 Procedure, Service Agreements, Dispute Resolution Clauses, Costs Orders
Contract Law Civil Procedure Immediate Judgment Part 8 and Part 7 Procedure Service Agreements Dispute Resolution Clauses Costs Orders

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Parties

Label Labs FZ LLE

Claimant

Five International Hotel Management LLC

Defendant

Procedural Posture

Commercial Contract Dispute / Application for Immediate Judgment Under Part 24 DIFC Rules; Order With Reasons

Legal Issues

  1. 1 Whether immediate judgment should be granted under Part 24 DIFC Rules
  2. 2 Whether the claim should proceed under Part 8 or Part 7 procedure
  3. 3 Whether the defendant has a real prospect of defending the claim

Ratio Decidendi

Immediate judgment was not granted because, despite doubts about the bona fides of Five International's defence, the court found that the appropriate course was to require payment of the principal sum into court as a condition for defending, and to proceed under Part 7 procedure. The application for immediate judgment was dismissed on this basis.

Court Disposition

Conditional order: Application for immediate judgment dismissed if defendant pays AED 1,081,452.79 into court within 21 days; otherwise, judgment for claimant for that sum plus interest and costs.

Orders

  • If Five International pays AED 1,081,452.79 into court within 21 days, proceedings to continue as if commenced by Part 7; application dismissed; timetable for pleadings set.
  • If Five International does not pay AED 1,081,452.79 into court within 21 days, judgment for Label Labs for that sum plus interest and costs to be assessed if not agreed.