ARB 011/2024 Nazeer v Noah [2024] DIFC ARB 011 (15 August 2024)

ARB 011/2024 Nazeer v Noah [2024] DIFC ARB 011 (15 August 2024)

The application to set aside the arbitral award is dismissed because the tribunal was not obliged to apply Saudi law to the Allotment Agreement; the parties agreed that English law governed the substance of the dispute, and Nazeer expressly confirmed during the arbitration that Saudi law was not in issue. There is no evidence that failure to apply Saudi law constitutes a breach of UAE public policy. Errors of law or fact by the tribunal do not justify setting aside the award under Article 41(2)(b)(iii) of the DIFC Arbitration Law. Nazeer is precluded from objecting due to its conduct in the arbitration.

Citation
[2024] DIFC ARB 011
Parties
Claimant: Nazeer; Defendant: Noah
Jurisdiction
United Arab Emirates
Judgment Date
15 August 2024
Procedural Posture
Arbitration Set Aside Application / Judgment on Application to Set Aside Arbitral Award
Outcome
Application dismissed
Legal Topics
Setting Aside Arbitral Awards, Public Policy Exception, Applicable Law in Arbitration, Costs in Arbitration Related Litigation
Arbitration Contract Law Conflict of Laws Setting Aside Arbitral Awards Public Policy Exception Applicable Law in Arbitration Costs in Arbitration Related Litigation

Case Brief

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Parties

Nazeer

Claimant

Noah

Defendant

Procedural Posture

Arbitration Set Aside Application / Judgment on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitral award should be set aside for failure to consider Saudi law under Article 41(2)(b)(iii) of the DIFC Arbitration Law
  2. 2 Whether the tribunal was obliged to apply Saudi law to the Allotment Agreement
  3. 3 Whether failure to apply Saudi law constitutes a breach of UAE public policy justifying setting aside the award

Ratio Decidendi

The application to set aside the arbitral award is dismissed because the tribunal was not obliged to apply Saudi law to the Allotment Agreement; the parties agreed that English law governed the substance of the dispute, and Nazeer expressly confirmed during the arbitration that Saudi law was not in issue. There is no evidence that failure to apply Saudi law constitutes a breach of UAE public policy. Errors of law or fact by the tribunal do not justify setting aside the award under Article 41(2)(b)(iii) of the DIFC Arbitration Law. Nazeer is precluded from objecting due to its conduct in the arbitration.

Court Disposition

Application dismissed

Orders

  • Claimant's application to set aside the arbitral award is dismissed.
  • Claimant shall pay Defendant's costs of the claim in the sum of USD 132,000.