Dubai, UAE
Key Takeaways:
- The Dubai International Financial Centre (DIFC) Courts provide a unique system to settle disputes efficiently and quickly through their Small Claims Tribunal (SCT), encouraging individuals and businesses to represent themselves without a lawyer.
- SCT handles claims under a specific threshold (AED 500,000, or AED 1 million with mutual agreement), and all employment claims, regardless of value, if all parties to the claim agree in writing to use the SCT. Typically, cases involve disputes related to small business transactions, employment, and tenancy.
- Initiating a small claim starts by submitting a claim form to the SCT Registrar through the DIFC Courts e-Registry or in person at the Registry.
- Court fees are calculated based on the type and value of the claim. For employment claims, the fee is 2% of the claim value, while for all other claims, it is 5%. Both have a minimum fee of USD 100.
- Before moving forward with the case, an SCT judge holds a consultation meeting with the parties to attempt to settle the dispute. If successful, the SCT will issue a Consent Order reflecting the agreement, which is treated as a final and binding judgment, otherwise, the SCT will schedule a formal hearing.
- SCT proceedings are typically private and informal, often conducted remotely using video conferencing.
- SCT judgments are final and binding, enabling enforcement both within and outside the DIFC. There is however a limited right of appeal from the SCT to the Court of First Instance, which must be based on points of law, not on facts or evidence.