Verbal Statements Before Court-Appointed Expert May Waive An Arbitration Clause

Introduction

It is an established legal principle of the UAE mainland courts that making a submission, or an argument related to merits of the case before challenging the court's jurisdiction based on arbitration clause will be considered as a waiver of this clause and acceptance of the jurisdiction of the court. This principle is founded on Article (8) of Federal Law No.6 for year 2018 regarding Arbitration and Article (86) of Decree by Law No 42 for year 2022 regarding Civil Procedures. Recently, Dubai Courts have issued a judgment which appears to reinforce and broaden the application of this principle..

The Case before the CFI and the CA:

A Claimant filed a lawsuit before Dubai Courts (Case No. 87/2023) to claim AED 3,600,000 arising from an investment agreement with the Defendant, a retail shop owner, who agreed to maintain financial accounts and provide access to the Claimant to these accounts and profits when due. The Claimant submitted that the