Headnote

Arbitration – Arbitrator acting as amiable compositeur – Appeal of an annulment of an award - ADCCAC rules of arbitration

Summary of facts

The Petitioner had entered into a contract with the Respondent for the purchase office space in a tower. The Respondent breached the contract and the Petitioner filed an arbitration claim with ADCCAC. The single arbitrator appointed by ADCCAC issued an award ordering the Respondent to pay a sum of AED 8,697,790 to Petitioner. Since the award was final and binding, and not subject to appeal, the Petitioner filed its action to have it ratified.

The Respondent filed a counterclaim to set aside the arbitral award on the basis that it did not include the text of the arbitration agreement or state its essence. It was also contended that it was issued contrary to Article 7 of ADCCAC’s Procedural Regulations which require that arbitrations be concluded within six months from the date of the appointment of arbitrators. The Respondent further argued that the award was issued in the English language without a certified translation, contrary to Article 212, Section 6 of the Civil Procedure Law.

The Court of First Instance annulled the arbitral award. The decision was upheld by the Court of Appeal. The Petitioner appealed to the Court of Cassation claiming that the decision of the Court of First Instance could be appealed as the arbitration agreement did not include an authority for the arbitrator to act as amiable compositeur (and therefore the provisions of Article 217 (3) of the Civil Procedure Law did not apply).

Held

The Court of Appeal decision was overturned.

Article 217 (3) of the Civil Procedure Law provides that an arbitral award is not subject to appeal if the arbitrators are acting as amiable compositeurs or the parties have expressly waived their right to file an appeal or the disputed amount does not exceed AED 10,000. The parties had agreed in this case that the arbitrator was authorised to act as amiable compositeur during the arbitration and so an appeal against the court decision annulling the award could not be made.

Judgment

Article 217 (3) of the Civil Procedure Law provides that an arbitral award is not subject to appeal if the arbitrators are acting as amiable compositeurs or the parties have expressly waived their right to file an appeal or the disputed amount does not exceed AED 10,000. The transcript of the first meeting of the arbitrator with the parties’ lawyers expressly stated, at item 27, that the arbitrator is authorised by the parties to act as amiable compositeur during the arbitration in accordance with Article 217, Section 3 of the Civil Procedure Law.

Article 217 provides that rulings confirming or setting aside an arbitral award may not be appealed if the arbitrators are authorised to act as amiable compositeurs or the parties have expressly waived their right to appeal. Therefore, the Petitioner’s appeal from the primary ruling setting aside the arbitral award will not be accepted and the Court of Appeal, in finding likewise, came to the correct decision.