Paul v Paxton
- Status
- Judgment
- Jurisdiction
- United Arab Emirates
- Posture
- Arbitration Claim / Costs Order Following Dismissal of Main Application
- Language
- English
More details
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Court held that there was no basis to reduce or postpone the Claimant’s costs on the alleged authority issues, found the Claimant entitled in principle to indemnity costs because the case was outside the norm for the reasons previously set out, and therefore ordered summary assessment of the Main Application costs in the sum of USD 25,000 and dismissed the Costs Application.
Court disposition
Main Application costs awarded to Claimant; Costs Application dismissed
Orders
- The Claimant is entitled to be paid its costs of the Main Application.
- Those costs are summarily assessed in the sum of USD 25,000.
- The above sum shall be paid by the Defendant to the Claimant within 14 days of this Order.
- The Costs Application is dismissed.
02
Material facts
Parties
PAUL
ClaimantPAXTON
DefendantAmounts and remedies
- Summarily Assessed Costs: USD 25,000
- Claimant's Sought Costs Total: USD 43,505.62
- Disbursements: AED 7,005.42
03
Procedural history
Posture
Arbitration Claim / Costs Order Following Dismissal of Main Application
04
Questions and positions
Legal issues
- 01
Whether the Claimant was entitled to costs of the Main Application
- 02
Whether those costs should be assessed on an indemnity basis
- 03
Whether the Costs Application should be dismissed
- 04
Whether alleged authority issues concerning Mr Xu justified reducing or postponing costs assessment
Party arguments
- Applicant
- The Claimant sought costs on an indemnity basis and filed a Statement of Costs. The Defendant objected, arguing the evidence was insufficient, the time claimed was disproportionate, indemnity assessment was inappropriate, Mr Xu lacked authority to act for the Claimant, the statement of costs was uploaded without notice, and no costs determination should be made until authority issues were resolved.
05
Court’s reasoning
Legal principles
- 01
Order with Reasons dated 21 May 2026, as summarized in the reasons
A party may be entitled to have its costs assessed on an indemnity basis where the case is taken outside the norm by the opposing party's conduct and misconceived grounds.
- 02
Schedule of Reasons, paragraph 7(a)
Allegations that a representative lacked authority will not, without a credible basis, justify reducing or postponing a costs assessment where the representative and firm acted throughout for the party.
06
Ratio, limits and disposition
Ratio decidendi
The Court held that there was no basis to reduce or postpone the Claimant’s costs on the alleged authority issues, found the Claimant entitled in principle to indemnity costs because the case was outside the norm for the reasons previously set out, and therefore ordered summary assessment of the Main Application costs in the sum of USD 25,000 and dismissed the Costs Application.
Obiter and limits
- The Defendant's separate document responding to the witness statement of Prince was of no relevance to the costs position.
Court disposition
Main Application costs awarded to Claimant; Costs Application dismissed
- The Claimant is entitled to be paid its costs of the Main Application.
- Those costs are summarily assessed in the sum of USD 25,000.
- The above sum shall be paid by the Defendant to the Claimant within 14 days of this Order.
- The Costs Application is dismissed.
Source and reliance status
Official court record
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Court record
Judgment
Claim No. ARB 010/2026
IN THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE COURT OF FIRST INSTANCE
BETWEEN:
PAUL
Claimant
and
PAXTON
Defendant
ORDER WITH REASONS OF H.E. JUSTICE ROGER STEWART
UPON the Arbitration Claim Form dated 4 February 2026 (the “Claim”)
AND UPON the Defendant’s Application No ARB-010-2026/2 dated 30 March 2026 (“the “Main Application”)
AND UPON the Order with Reasons of H.E. Justice Roger Stewart dated 21 May 2026
AND UPON the Claimant seeking its costs on an indemnity basis and filing a Statement of Costs dated 1 June 2026
AND UPON the Defendant’s Application No. ARB-010-2026/4 dated 12 June 2026 (the “Costs Application”) supported by a document entitled “Defendant’s response to the Witness statement of Prince” dated 9 June 2026 and a further document entitled “Defendant’s Objections to the Claimant’s statement of costs” also dated 9 June 2026
AND UPON the Claimant confirming that it did not intend to respond further in relation to costs or the Costs Application
IT IS HEREBY ORDERED THAT:
1. The Claimant is entitled to be paid its costs of the Main Application.
2. Those costs are summarily assessed in the sum of USD 25,000 .
3. The above sum shall be paid by the Defendant to the Claimant within 14 days of this Order.
4. The Costs Application is dismissed.
Issued by: Hayley Norton Assistant Registrar Date of issue: 23 September 2026 At: 2pm
SCHEDULE OF REASONS
1. As set out in the Order with Reasons of 21 May 2026:
(a) The Court dismissed the Main Application dated 30 March 2026 whereby the Defendant sought to set aside or vary an anti-suit injunction contained in an Order dated 4 February 2026 and maintained at the return date of 13 February 2026 so as to permit it to seek relief from the Dubai Courts outside the DIFC in order to set aside an Arbitral Award dated 5 December 2025;
(b) Permission was given to any party to apply for costs within 7 days from the date of the Order; and
(c) The other party was permitted to respond to the same within 7 days thereafter.
2. On 1 June 2026, the Claimant sought costs in the total amount of USD 43,505.62 on an indemnity basis. This was made up as to expenses or disbursements of AED 7,005.42 with the balance being time costs.
3. On 12 June 2026, the Defendant issued an application objecting to the costs statement and seeking its dismissal on several grounds alternatively that it be substantially reduced and that no costs be awarded on an indemnity basis.
4. Accompanying the Defendant’s application were two documents. The first was entitled “Defendant’s response to the witness statement of Prince” which contained a series of points objecting to an earlier witness statement in the substantive proceedings. It is of no relevance to the costs position.
5. The second document was entitled “Defendant’s objections to the Claimant’s Statement of Costs”. This document:
(a) Objected to the sufficiency of the evidence presented in support of the Costs Application including in respect of disbursements where no description was given as to their nature;
(b) Objected that the total time sought was disproportionate given that the matter was resolved without a hearing;
(c) Objected to assessment on an indemnity basis;
(d) Objected to the authority of Mr Xu to act for the Claim on the basis that his authority to act had been challenged in related proceedings
(e) Asserted that the Statement of Costs had been uploaded without notice to the Defendant; and
(f) Submitted that there should be no resolution of the issues until the authority issues had been resolved.
6. The Claimant was given the opportunity to respond to the above application (without being under any obligation to do so) but chose not to do so.
7. Having considered the material, I come to the following conclusions:
(a) First, there is no basis for reducing the costs sought or postponing the costs assessment on the basis of the alleged authority issues. Mr Xu and his firm have acted on behalf of the Claimant throughout and there is no explanation as to why this was done without the Claimant’s knowledge or authority – such an allegation being inherently implausible;
(b) Secondly, the Claimant is, as a matter of principle, entitled to have its costs assessed on an indemnity basis. The Order with Reasons dated 21 May 2026 set out a series of matters which took this case outside the norm including:
i. The expression of disquiet at the conduct of the Defendant in paragraph 26;
ii. The fact that the grounds for making the application were misconceived on grounds set out in paragraph 31 including:
1. That the Defendant had put forward no ground upon which it was entitled to challenge the Award in the Courts of Dubai outside the DIFC; and
2. That no proper grounds were established as to non-disclosure;
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