DIFC-LCIA arbitration

ARCHIVED: This Overview has been archived and is not maintained.

NOTE: The DIFC Arbitration Institute (DAI) was abolished in September 2021 by the ruler of Dubai, with its operations and assets to be merged with the Dubai International Arbitration Centre (DIAC). See: LNB News 20/09/2021 55. On 28 March 2022, DIAC and the LCIA announced that they had agreed terms under which the LCIA would administer cases already registered with the DIFC-LCIA Arbitration Centre from London and DIAC would administer cases registered from 21 March 2022

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Latest Arbitration News

Swedish Court of Appeal rejects challenge to arbitral award on investment criteria under BIT (Komaksavia v The Republic of Moldova)

Arbitration analysis: The Svea Court of Appeal (Court of Appeal) has dismissed a challenge of an arbitral award under the Cyprus-Moldova bilateral investment treaty (BIT). The claimant, Komaksavia Airport Invest Ltd (Komaksavia), challenged the award on the basis that the Tribunal had wrongly dismissed Komaksavia’s claims for lack of jurisdiction by failing to apply the so-called doctrine of assertion. The ruling clarifies that the arbitration clause in the BIT constitutes a standing offer from the contracting states to submit disputes to arbitration, but only to those who qualify as investors under the agreement and who have made an investment. Whether a party requesting arbitration has made an investment is primarily a matter of consent to arbitration, and the so-called doctrine of assertion is not applicable to establish jurisdiction of an arbitral tribunal. Accordingly, the mere assertion of an investment under a BIT is insufficient to establish jurisdiction of an arbitral tribunal. Written by Andreas Johard, partner at Hammarskiöld’s arbitration team, and Zack Norén, associate at Hammarskiöld.

Dutch court grants partial leave for enforcement of DIFC award (BV v Basrah Oil Company)

Arbitration analysis: In these enforcement proceedings under the New York Convention of two arbitral awards rendered in the same Dubai International Financial Centre (DIFC) arbitration between a Dutch claimant (the Claimant) and the Iraqi Basrah Oil Company (Basrah Oil), the Amsterdam Court of Appeal took an unusual approach when granting leave for enforcement of an arbitral award. The request by the Claimant for exequatur was only partially granted and the exequatur counter-requested by Basrah Oil was denied, even though there was no basis for refusing exequatur under Article V of the New York Convention. This approach appears to be novel, in that that resembles a set-off of claims in a material sense, but procedurally is the result of a lack of legal interest in obtaining a full exequatur from the Dutch courts. Written by Hetty de Rooij, lecturer and external-PhD researcher at Leiden University.

Paris Court of Appeal—applicability and enforceability of arbitration clause (Euro Disney Associés v Art Batiment, STRF)

Arbitration analysis: In a domestic arbitration, French courts do not extend an arbitration clause to a subcontractor unless that subcontractor has clearly accepted it. The Paris Court of Appeal held that the arbitration clause contained in the main contract was manifestly inapplicable to the subcontractor, who was not a signatory and whose subcontract included a jurisdiction clause in favour of a French court. This was so even though the main contract required the contractor to include an arbitration clause in all subcontracts, and despite the existence of a payment delegation agreement referring to the arbitration clause. This decision provides a reminder that the applicability and enforceability of arbitration clauses in domestic French arbitration law remains tightly linked to consent, and that the scope for extending such clauses across complex project structures is narrower than in the international arbitration regime. Written by Clément Fouchard partner at Reed Smith, and Mathilde Adant, associate at Reed Smith.

SCIAHK announces new arbitration rules effective from 31 March 2025

The South China International Arbitration Center (Hong Kong) (SCIAHK) has announced new approved arbitration rules taking effect from 31 March 2025. The rules will apply to all cases accepted from that date forward, while cases accepted before 31 March 2025 will continue under the 2022 rules unless parties specifically agree to adopt the new rules.