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Overview: Doing Business in Ras Al Khaimah 2021

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Published on : 09 Dec 2020
Author(s):Several

Doing Business in Ras Al Khaimah 2021

Enforcing Contracts Questionnaire

1.Case Study Assumptions

Two domestic companies - Seller and Buyer - conclude a contract for the sale of some custom-made goods. Further to such contract, Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, custom-made furniture. Upon delivery of the goods, Buyer alleges that the goods are of inadequate quality, and refuses to pay. Seller insists that the goods are of adequate quality and demands payment of the contract price. Since the goods were custom-made for Buyer, Seller cannot sell them to a third party. Following Buyer's refusal to pay, Seller sues Buyer. The court decides 100% in favor of Seller, and orders Buyer to pay the contract price.

  1. Both Seller and Buyer are domestic companies, located in Ras Al Khaimah.
  2. Seller sues Buyer to recover the amount due under the contract. The value of the claim is: AED 317,386.
  3. The court deciding the case is located in Ras Al Khaimah and is the first instance court with jurisdiction over commercial claims of AED317,386.
  4. Seller fears that Buyer may dissipate assets, move assets out of the jurisdiction or become insolvent. Therefore, if such a procedure is allowed before the competent court, Seller requests and obtains attachment of Buyer’s movable assets (for example, office equipment or vehicles) prior to obtaining a judgment.
  5. Buyer opposes the claim, which is then disputed on the merits. An opinion on the quality of the goods delivered by Seller is required and is given by an expert during the court proceedings:
    1. If it is standard practice in your country for Seller and Buyer to call their own expert witnesses, then each party calls one expert witness to provide an opinion on the quality of the goods delivered by Seller.
    2. If it is standard practice in your country for the judge to appoint an independent expert to provide an opinion on the quality of the goods delivered by Seller, then the judge does so. It is assumed that no opposing expert testimony is provided.
  6. Judgment is 100% in favor of Seller. Buyer is required to pay the agreed contract price to Seller.
  7. Buyer does not appeal the judgment.
  8. Seller starts enforcing the judgment when the period allocated by law for appeal expires. It is assumed that Buyer has no money in his bank accounts but has sufficient movable assets to fulfill the full debt. As a result, Buyer's movable assets (for example, office equipment or vehicles) are attached and stored in preparation for a public sale.
  9. A public sale is organized, advertised and held to sell Buyer's movable assets. The assets are sold and the value of the claim is entirely recovered by Seller.

Definitions: for the purpose of this questionnaire, the terms below carry the following meaning:

  1. Competent court means the court in Ras Al Khaimah with jurisdiction over commercial disputes similar to the one described in the assumptions of the case. If more than one court is competent, competent court means the court that is most likely to determine the outcome of the standardized case.
  2. Expert witness means a witness with the required qualifications or experience to give an opinion on whether the goods delivered are of adequate quality. Expert opinion is required and provided prior to judgment.

2.                                                                                                                                              Reform Update

 

 

Answer

Have there been any reforms since November 1, 2018 in domestic commercial litigation (e.g. amendments to the civil procedural rules or to the case management system, implementation of e-filing, implementation of mediation, substantial changes in arbitration law, creation of a new commercial court, or appointment of new judges or

reorganization of the judicial system)?

Yes, there has been a reform since June 1, 2011

If relevant, please describe the reform(s). Please include information on the date of adoption, publication and enforcement of the new law(s) or regulation(s).

a.  Ministerial Resolution Number 57 of 2018 concerning Executive Regulations of Federal Law Number 11 of 1992 on Civil Procedure Law has been amended by UAE Cabinet Resolution Number 33 of 2020 (Executive Regulation Amendments)

b.  The conduct of proceedings before courts have been amended, mainly, the process for service/ notification;

c.  The amendment aims to reduce the burden of courts with respect to gathering essential evidence and

documents, reduce costs and expedite the process in civil and commercial law suits by expanding the scope of powers of the case management office. The Case Management Office is the branch of the court that insures that the parties are duly summoned and have had the opportunity to raise their main arguments before referring the case to the court for consideration;

d.  Accessibility of judgments has been enhanced by making them

available through publication thereof, in commercial, civil and employment matters; and

e.  The efficiency of proceedings are improved by imposing stricter rules for cases reserved for judgment, increasing the claim value for cases heard by summary chambers, mapping out the grievance procedure of summary orders, precautionary attachment orders and setting a statute of limitation for

appealing decisions of the execution judge.

Are any such reforms expected to be implemented in the next six months? If so, please describe.

No.


3.Competent Court

 

Answer

Comments

3.1 Does the Civil Section of the First Instance Court of RasAl Khaimah have jurisdiction over the case described in Section 1, given the value of the claim set at AED 317,386?

Yes

If you answered “No”,please specify what the new competent court would be:

3.2. How many cases similar to the one described in Section 2 before the Civil Section of the First Instance Court of Ras Al Khaimah have you or your firm handled since 2019?

More than 100

 

Please provide your responses to the following sections taking into account the case study assumptions provided above. For your convenience, answers from Doing Business in Ras Al Khaimah 2019 are included in this questionnaire where available.

If the competent court has changed, please answer all applicable questions in Sections 4, 5 and 6 assuming that the new court would hear the case.

 

 

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