Legal Cost in Arbitration

 The UAE legal system is diverse as it is a mix of Islamic, civil and international laws. Therefore, it has gained the attraction of many expats, Muslims and non-Muslims. Though, the laws are clear in the UAE statute, but people have to hire lawyers for their legal disputes. A few legal professionals recommend going for arbitration or settlement out of court. Negotiation and mediation without court is less time-consuming because the court proceedings take time and ask for more than one trial. Arbitration in the UAE is one of the cost-effective strategies to resolve a legal case. People often want to know if arbitration costs can be claimed. However, the law firms in Dubai have witnessed that arbitration is successful because the tribunal authority covers the legal costs and expenses. The parties have to pay different types of legal costs in arbitration. This includes; fees for lawyers, tribunals and administration. 

Main Difference in Arbitration and Litigation

An arbitration is considered to settle the legal matter without involving the court, in a private setting. But the litigation involves the court’s judgement. Both parties have to appear in court with their lawyers. Most importantly, the legal fees in arbitration and litigation are what makes both of them different from each other. You can recover legal fees in arbitration, but not in litigation. 

Tribunal’s Decision for Legal Cost

The tribunal can make its decision based on documentation submitted by both parties. They have to submit a document that shows the cost incurred during arbitration and claim the reward against the unsuccessful party that incurred legal costs while initiating and defending in the proceedings. Domestic arbitration in the UAE has extensive tribunal discretion. Unlike the Federal Courts of the UAE where a fixed amount of legal cost is granted to the successful party, the arbitrators would fix and provide the legal cost of the relevant party according to certain rules applied by them. 

How Tribunal Courts Decide Legal Costs?

The law firms in Dubai have known that the tribunal courts have certain rules to allocate legal costs to the winning party. It consists of many factors. The behaviour of both parties during trials is observed in the court proceedings to ensure a professional code of conduct. In case of partial success, the tribunals have to decide by awarding extensively to the winning party or at no cost to any party. 

It is difficult to spend on legal cases, especially when you have a limited budget. Therefore, consider taking the help of a lawyer who would charge a nominal fee. You can always look out for legal aid before proceeding to courts or arbitrators.

Whatever the case is, the law firms in Dubai understand that the arbitration costs in the UAE must be according to international arbitration standards. Always choose a legal assistant that has an idea about the arbitration, litigation and how tribunal courts recover the legal costs for the parties. Choose your lawyer wisely.