Commercial Claim Case
By Legal Consultant: Ismail Al-Masri | Ahkam Transaction Legal Consultancy
Introduction
This document aims to clarify the terms, conditions, and procedures for commercial claiming rights in accordance with the laws of the United Arab Emirates (UAE).
A commercial claim is a legal process by which an individual or entity seeks to recover money owed to them. Such claims may arise from various situations, including unpaid invoices, breaches of contract, or unpaid loans and advances.
The UAE legal system provides structured methods—through arbitration centers, civil courts, or commercial courts—to compel debtors to fulfill their financial obligations, whether the creditor is an individual or a company.
Commercial disputes can affect both individuals and companies. Depending on the nature of the relationship—whether governed by civil, commercial, or other laws—parties may resort to the competent courts to resolve such disputes. These are among the most common legal issues faced by citizens, residents, and companies.
I. Legal Conditions for Filing a Commercial Claim
To be accepted by the court, a commercial lawsuit must meet the following essential legal conditions:
1. Attempt at Amicable Resolution
Prior to initiating legal action, the plaintiff should attempt to resolve the dispute amicably and provide evidence of such efforts (e.g., email correspondence, messages, or other communications).
2. Existence of a Legitimate Legal Interest
The plaintiff must have a legally recognized interest in the claim—namely, a financial right that has been violated or damages suffered due to the defendant’s actions.
3. Submission of Supporting Evidence and Documentation
Essential documents may include contracts, invoices, receipts, communications, and certifications. These materials are crucial to prove the plaintiff’s claim in court.
II. Procedural Requirements for Filing a Lawsuit
1. Preparing the Lawsuit in the Correct Legal Form
The preparation and drafting of the lawsuit must be carried out by a legal specialist to ensure accuracy. The presence of a lawyer can assist in correctly filing the lawsuit and effectively following the proper legal procedures. The lawsuit must include all details related to the case, including the names of the parties, the subject matter, facts, evidence, and specific requests.
2. Clarity of the Plaintiff’s Requests
The requests made in the lawsuit must be clear and specific, such as the amount of money claimed, interest sought, and legal expenses demanded.
3. Jurisdiction
The lawsuit must be filed before the court that has jurisdiction to hear it, based on the type and value of the case.
4. Compliance with Legal Deadlines for Filing the Lawsuit
To avoid the dismissal of the case due to the statute of limitations (i.e., the expiration of the legally prescribed period to file a lawsuit), the plaintiff must be aware of the legal time limits applicable to his or her type of claim.
5. Payment of Judicial Fees
A lawsuit cannot be accepted unless the judicial fees are paid. These fees vary depending on the type and value of the lawsuit, the number of defendants, and the competent court.
6. Notification of the Defendant of the Lawsuit, Hearing Date, and Case Number
At this stage, the plaintiff’s role is limited to paying the announcement fees, after which the court’s competent authorities will officially and legally notify the defendant. This ensures the defendant can respond and present their defenses, making the judgment enforceable against them. It is important for the plaintiff to ensure the accuracy of all information included in the statement of claim, particularly the names and addresses of the parties, to establish the lawsuit in a legally valid form.
III. Procedures for Filing a Financial Claim:
1. Attempting Amicable Settlement:
Efforts should be made to resolve the matter amicably before proceeding with legal action.
2. Providing Evidence and Supporting Documents:
The plaintiff must submit all documents and evidence that establish his or her right.
3. Accurate Preparation of the Lawsuit:
The lawsuit must be carefully drafted and should include:
• Introduction of the lawsuit
• Names and addresses of the parties
• Subject matter of the lawsuit
• Facts and supporting evidence
• Specific requests (amounts claimed, compensation, interest, legal expenses, etc.)
4. Registration of the Case:
The case should be registered with the competent conciliation and reconciliation committees according to the nature of the dispute, with payment of the applicable fees and announcement costs.
5. Attendance at Conciliation Committee Sessions:
• If reconciliation is achieved, the agreed-upon settlement is executed.
• If reconciliation fails, the case is referred to the competent court, and judicial fees are paid accordingly.
6. Court Proceedings:
Following referral, the parties must attend court sessions to present evidence, documents, witness testimony, and other relevant materials and comply with the court’s instructions.
7. Obtaining a Judgment on the Plaintiff’s Claims:
After considering the parties’ arguments and reviewing the evidence, the court will issue its judgment. If a party objects to the judgment, it may be appealed within the legally prescribed period.
8. Enforcement of the Judgment Against the Defendant:
Once the judgment becomes final, enforcement measures will be taken against the defendant through the competent authorities to collect the awarded amount.
9. Special Note on Language Requirements:
If the parties to the lawsuit are of different nationalities and one party does not speak Arabic, it is necessary that the statement of claim and all submitted documents be in Arabic. Any non-Arabic documents must be legally translated into Arabic.
Conclusion:
In conclusion, filing a commercial claim under the laws of the United Arab Emirates requires thorough awareness and a comprehensive understanding of the applicable legal procedures and requirements. It is crucial to provide all necessary documents, adhere to the prescribed procedures and conditions, and seek professional legal advice and assistance to ensure the acceptance of the case and the successful recovery of the claimed amounts.
Legal Consultant
Ismail Al-Masri
Ahkam Transaction Legal Consultancy