Commercial litigation attorney is a specialist in managing disputes and cases that arise in the field of business. These litigation include issues such as disagreements between business partners, lawsuits related to purchase and sales contracts, and compliance problems with commercial laws. The primary role of a commercial litigation attorney is to protect the commercial interests of their clients and achieve the best possible outcome in litigation trials.
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What Commercial Litigation Attorneys Do?
Commercial litigation attorney represents the business case in court; this is well-known. However, there are a range of tasks required from a commercial litigation attorney, here are some of them:
- Analyzing contracts and legal documents to assess legal obligations and identify weak points or potential risks.
- Providing legal consultation on how to handle various legal and business issues and guiding them on the best litigation strategies.
- Representing clients in courts and before arbitration panels, and presenting legal arguments.
- Managing negotiations and mediation to reach out-of-court settlements to avoid lengthy and costly litigation.
- Filing and pursuing appeals in commercial cases through various judicial stages.
- Ensuring that the client’s business activities comply with applicable laws and regulations.
- Protecting intellectual property rights such as trademarks and commercial patents.
- Preparing legal defense and preparing evidence and testimonies to support client cases.
Types Of Commercial Litigation in Dubai:
Commercial litigation are defined as disagreements that may arise between business partners over trade terms due to various reasons related to ownership, regulations, or policies. The prominent types of commercial litigation include:
1. Commercial Litigation Related To New Regulatory Laws
The changes in regulatory laws, which are increasingly complex, can be a primary cause of wide-ranging commercial disputes. Under this broad category, there are several potential subtypes of litigation that may arise, including:
- Litigation between companies and their clients or financiers.
- Litigation between companies and governmental entities.
- Litigation between company executives and their workers or employees.
Each of these types of litigation, according to the new regulatory laws, is linked to the implementation mechanism of these regulations. In the first case, the disagreement may be related to the costs allocated to each party. In the second, the litigation may revolve around the interpretation of the regulations. In the third case, the disagreement often concerns internal workplace policies and compliance with them.
2. Cross-border Commercial Litigation
This type is the most complex, involving legal texts from the countries of the disputing companies, as well as their governing cultures and traditions. Disagreements may arise over the applicable law in the dispute when each party insists that their country’s law is the most correct and safest.
It is well known that cross-border commercial litigation are the most costly, but they invariably require the hiring of skilled lawyers for each company to resolve the case with the least possible losses and maximum profits. You can always consult a commercial litigation attorney in Dubai about this by contacting us via the WhatsApp button at the bottom of the screen.
3. Commercial Litigation Between Businesses
The most common form of commercial litigation occurs between one company and another, which may be a competitor or even a business partner. The subtypes of commercial disputes between companies include:
- Disputes over industrial and intellectual property.
- Disputes related to partnership or employment contracts.
- Disputes concerning services and product quality.
How Businesses Can Resolving a Commercial Litigation?
Given that commercial litigation are more associated with companies rather than individuals, and relate to general and external issues rather than personal and narrow ones, there are methods to resolve these litigation before initiating legal proceedings:
1. Arbitration:
Arbitration is a resolution of a commercial dispute by a third party, the arbitrator, whose decision is legally binding.
Federal Law No. (6) of 2018 concerning arbitration in the UAE allows for local, foreign, and international arbitration, including maritime arbitration.
Advantages of Arbitration
- Arbitration is a quicker and less costly procedure compared to litigation, especially when both parties agree to arbitrate specific contested issues.
- Provides greater privacy, particularly for companies that prefer to keep their litigation confidential.
- More flexible, allowing the disputing parties to choose specific issues and modify them by agreement to suit their needs.
- Arbitration is final; the decision issued by the arbitrator cannot be appealed and must be enforced by both disputing parties.
2. Mediation
Mediation is also a solution through which a satisfactory agreement can be reached by the disputing parties through a mediator, or a third qualified person who manages the causes of the litigation and resolves it impartially.
Advantages of Mediation
- Lower cost compared to the litigation process.
- Credibility and openness from both parties to present the facts before the mediator.
- The mediator facilitates the resolution process and suggests solutions, acting more as an advisor than imposing a binding decision.
- Mediation is confidential, allowing issues to be discussed without fear of them being published or used against the litigation parties.
- Mediation can be used for many types of commercial litigation.
- Amicable Settlement: Opting for an agreement or amicable settlement between the parties to the dispute can avoid litigation.
3. Litigation
Some commercial disputes are complex and intricate, involving many points of contention, and other methods fail to reach a legal solution. In such cases, the only option is to file a legal claim and appear before the court, which will consider the case and issue the necessary penalties and obligations. However, litigation is the most time-consuming and costly method compared to the ones previously mentioned.
Tips for Choosing a Commercial Litigation Attorney
Commercial litigation are inherently complex, requiring a thorough understanding of every legal detail to navigate effectively. In this context, the role of a specialized commercial dispute lawyer, capable of covering all aspects of the case and securing a favorable outcome, becomes crucial. Therefore, when selecting a commercial litigation attorney, you should consider the following:
- Legal Assessment Skills: The attorney should be capable of evaluating the case with clear legal insight, informing you of your strengths and weaknesses in the matter.
- Negotiation Expertise: The attorney must possess substantial experience in conducting negotiations—a crucial skill for any lawyer but particularly vital for those handling commercial litigation.
- Proficiency in Securing Favorable Settlements: The ability to negotiate win-win settlements is essential.
- Specialized Legal Knowledge: The attorney should have the necessary legal knowledge in commercial litigation cases, preferably specializing in this area.
- Analytical and Interpretive Skills: The attorney must be adept at analyzing and interpreting the opposition’s stance to understand the underlying issues fully.
- Flexibility: It is important for the attorney to be flexible and not rigid in their approach.
- Proven Track Record: The attorney should have a history of previous, successful outcomes in similar cases.
Laws Governing Commercial litigation Resolution:
There are multiple legal provisions in the United Arab Emirates related to the resolution of commercial litigation. Based on the points we have discussed, it is important to be aware of the following legal texts:
- Federal Decree No. (6) of 2018 concerning arbitration in the UAE, which includes (61) legal articles. Its provisions apply to:
- Every arbitration that takes place in the country, unless the parties agree to subject it to another form of arbitration, except what contradicts public morals.
- Every commercial/international arbitration outside the country if the parties agree to conduct it according to this law.
- Every arbitration arising from a litigation concerning a contractual or non-contractual legal relationship, except those excluded by a specific legal text.
- Federal Decree No. (10) of 2004 in the UAE established a center for resolving commercial litigation called “Dubai Center,” granting it financial and administrative independence.
- Law No. (22) of 2019 defines mediation as: “Any relationship where parties request another person, called the mediator, to assist them in their efforts to reach a settlement in an existing litigation between them concerning a contractual or non-contractual legal relationship, without having the authority to impose a resolution of the litigation.”
The courts of the UAE and Dubai provide experienced judges to commercial litigation claims, given the importance and sensitivity of such cases.
In the previous sections of the article, we discussed the types of commercial adjudicate in Dubai, the most important methods for resolving them, and the related laws, hoping that you have found this information beneficial. Do not hesitate to rely on us to recommend the best commercial litigation attorney to safeguard and support your case!
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Senior Legal Consultant with extensive experience in providing specialized legal advice in various fields within the United Arab Emirates. He specializes in commercial, criminal and personal status law cases, and works on representing individuals and companies in complex cases and legal disputes.