A leading structural steel fabrication company in the UAE, in a dispute relating to the development and construction of a large retail park

Summary

We are acting for a leading structural steel fabrication company in the UAE, in a dispute with a main contractor in relation to the development and construction of a large retail park.

Details

Our client was sub-contracted to provide steel structural works, standing seam works and wall-cladding for the Project. However, while engaged in carrying out the Works, our client encountered serious difficulties, which included, inter alia, non-certification of payment applications, issues regarding EOT/variation notices, and on-site delays by the main contractor. These difficulties resulted in the client incurring significant costs.

After the completion of the subcontract works, the main contractor attempted to unlawfully encash our client’s bonds.

It was at this juncture that our firm was instructed and successfully obtained an attachment order on the performance bonds. We then initiated arbitration proceedings under the auspices of the DIAC, with our client’s significant, multi-million Dirham claim and faced a similarly large counterclaim.

While we are still awaiting the Final Award, we were successful on nearly all of the applications made during the lifetime of the arbitration case.

How we added value

We believe that on behalf on of client we put forward a much more robust claim than that of the Respondent, who during the course of the proceedings withdrew claims and significantly decreased the value of the majority of its claims significantly.

For example, at the outset of the matter, the Respondent’s counterclaims amounted to circa AED 59 million, and were decreased to circa AED 39 million within its final pleading (I.e., two thirds of its initial claim). Furthermore, the Respondent’s quantum expert initially valued a counterclaim at AED 9.7 million and decreased it to NIL in the Joint Expert Report.

As such, we were successful in significantly decreasing the value of the Respondent’s counterclaim before entering the Merits Hearing. Such diligent and imperative fact finding completed by our team and the appointed independent experts has proven invaluable to the client.

We have since had repeated instructions from the client, therefore indicating their satisfaction.

We also had an external barrister seconded to our team for the duration of the case. Having a barrister on the matter from its commencement provided a unique outlook in strategizing and managing our cases to ensure a successful outcome for our clients. It also provided the client with comfort as the individual conducting the advocacy in the Merits Hearing ensured that they were aware of not only the nuances of the matter, but the procedural history of the case and we were therefore able to provide comprehensive and responses to arbitrator questions and adapt cross-examination of witnesses and experts with ease.

Furthermore, and despite the claim value and complexity of this matter, our client required a small team on the case in an attempt to save costs due to the financial burden that this case had placed upon it. Therefore, case management and innovation became imperative. The team was able to develop a matrix in which they were able to ensure that all tasks were properly dealt with at the appropriate level. Teamwork, not only within our firm,  but with the client and independent experts was key to the success of this case.