United Arab Emirates Judgment

Paul v Paxton

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Source document

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

Claimant

PAXTON

Defendant

Amounts 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

  1. Posture

    Arbitration Claim / Costs Order Following Dismissal of Main Application

04

Questions and positions

Legal issues

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

  1. 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.

  2. 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

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Judgment reading view

Judgment text

The complete available source text.

Source document

Court record

Judgment

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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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Order with Reasons dated 21 May 2026

Case cited

Order dated 4 February 2026

Case cited

Order with Reasons of H.E. Justice Roger Stewart dated 21 May 2026

Case cited

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