Power of Attorney in Arbitration

In an action initially filed before Dubai Courts, the Court of Appeal cancelled the decision handed down by the Court of First Instance and dismissed the defendant's claim due to the existence of an arbitration clause. The action was then referred back to the Court of First Instance in respect of the merits of the claim.

Claim

A commercial action was filed by a PJSC company in Dubai ("the Claimant") against a local Bank ("the Defendant"). The Claimant requested the Court to order the Defendant to pay US$250,000,000 (equivalent to AED917,500,000) plus interest and legal costs. The Claimant contended that on 28 and 29 August 2008 he transferred the above amount to the Defendant via two swift transfers (the first swift amounting to US$150,000,000 and the second swift amounting to US$100,000,000) through New York Bank. The Claimant repeatedly requested that the Defendant return back the money but the Defendant refrained from doing so, without any legal basis.