Types of Claims in ADGM Courts: Overview of Rules, Procedures, and Key Features For First Instance Courts
February 5, 2025
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ME-ALLIANCE LEGAL INSIGHT
Types of Claims in ADGM Courts:
Overview of Rules, Procedures, and Key Features For First Instance Courts
The Abu Dhabi Global Market (ADGM) Courts are internationally recognized for their efficient and transparent approach to handling disputes. As the world’s first fully digital courts, they embrace technology and innovation to deliver a seamless and modern judicial experience.
The ADGM Courts consist of two courts:
1.Court of First Instance (“CFI”); and
2.Court of Appeal (“COA”).
The CFI has 3 divisions:
i.Commercial and Civil Division
ii.Small Claims Division
iii.Employment Division
Based on ADGM Practice Directions 2, 3, and 4 issued on 30 November 2023, the following is a detailed overview of the key rules, procedures, and features applicable, depending on the nature of the claim:
1. Filing a Claim: Key Requirements:
The initial step in initiating any legal proceeding within ADGM Courts is filing a claim form. The process is guided by stringent requirements to ensure clarity and efficiency.
a) General Filing Rules: The type of claim determines the required form:
• Commercial and Civil Claims: Form CFI 1
• Small Claims: Form CFI 2
• Employment Claims: Form CFI 3
b) Contents of Forms: To successfully commence a claim, a claimant must file the relevant form and pay the applicable filing fee, ensuring the form includes the following:
• A clear statement of the final orders sought by the claimant.
• Detailed particulars of the claim, including factual summaries, legal arguments, and any calculations for the claimed amounts
• Supporting documents, such as contracts, correspondence, or other relevant evidence.
c) Service of Claims: Claim forms are typically served by ADGM registry unless the defendant is outside the UAE, in such case the claimant must ensure service.
2. Responding to a Claim
Defendants must adhere to strict timelines to respond to claims, failing which they risk default judgments.
a)General Timelines:
• Acknowledgment of Service: Defendants must file an acknowledgment within 14 days of receiving the claim form.
• Filing a Defense or Counterclaim: Defendants have 28 days to file a defense or counterclaim.
• Extensions: Requests for extension require court approval and must be justified.
b) Types of Responses
• Admission: Defendants may admit the claim, in whole or part, using Form CFI 34, along with any request for time to pay.
• Defense: A defense must detail responses to the claimant’s allegations, supported by attached documents.
• Counterclaims: Counterclaims must be filed alongside a defense using Form CFI 9, with similar rules regarding details and supporting evidence
3. Case Management And Pre-Trial Procedures
ADGM Courts prioritize efficiency through rigorous case management practices, aimed at narrowing issues and ensuring procedural compliance.
a) Case Management Conferences (CMCs):
• Held within 14 days of the close of pleadings.
• Key objectives include:
i.Fixing trial dates or provisional dates.
ii.Addressing issues like disclosure, expert evidence, and trial timetables.
iii.Encouraging settlement through mediation
b) Pre-Trial Review:
• Conducted 4–8 weeks before the trial date.
• Parties must file pre-trial checklists and ensure readiness for trial.
• The court finalizes the trial timetable and resolves any pending procedural issues.
4. Disclosure and Evidence
The ADGM Courts emphasize transparent and focused disclosure processes to ensure fair trials.
a) Disclosure Rules
• Parties must disclose all documents they intend to rely on at trial.
• Standard disclosure applies unless the court exempts specific cases.
• Requests for additional disclosure must be justified as necessary for the fair disposal of the case
b) Expert and Witness Evidence
• Expert evidence is allowed only with court permission and must address specific issues.
• Witness statements must be filed and served in accordance with prescribed timelines. The court may set page limits or formats for these statements.
5. Mediation Alternative Dispute Resolution:
• The ADGM Courts encourage court-annexed mediation to facilitate amicable resolutions.
• Mediation may be ordered by the court or requested by the parties at any stage of the proceedings.
• Failure to engage in mediation when appropriate may influence cost awards.
6. KEY FEATURES ACROSS ALL DIVISIONSa.
a) Default Judgments:
• Claimants may apply for default judgments if defendants fail to file a response. These judgments may include interest at 5% per annum unless otherwise agreed.
b) Interest and Costs:
• Interest on Judgments: Set at 5% per annum in the absence of an agreed rate.
• Costs: Governed by Practice Direction 9, which ensures proportionality and fairness
c) eCourts Platform:
• All filings and communications occur electronically through the eCourts platform, ensuring accessibility and efficiency.
7. Concluding Remarks:
The ADGM Courts provide a fair, efficient, and transparent platform for resolving disputes, leveraging advanced technologies, including AI, to handle even the most complex cases with speed and precision. As the world’s first fully digital courts, they set a global standard by automating processes and enhancing decision-making for a seamless user experience.
For businesses and individuals involved in ADGM-related disputes, partnering with experienced legal professionals is crucial. Our team offers tailored guidance and representation to protect your interests and navigate the ADGM framework with confidence.
Let us be your trusted partner in achieving favorable outcomes.
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