San Jose S A and others as the defendants and counter claimants in a dispute before the Abu Dhabi courts the construction of the Louvre Abu Dhabi

Summary

Our clients are the defendants and counter claimants in an ongoing dispute before the Abu Dhabi courts in relation to a major construction project. This concerned the construction of the Louvre Abu Dhabi, an off shoot of the world renowned the Louvre Paris. It is set to become on the of the UAE’s largest cultural and tourist attractions.

Details

After the museum opened to the public, our clients and their subcontractors were still liable to complete certain parts of their scope of work, particularly the MEP sub-contractor.

The dispute arose when the sub-contractor refused to complete the remaining work and demanded that it be remunerated for the prolongation costs for the amount of approx. AED 450 million. We immediately opposed this on behalf of our client via a counterclaim against the sub-contractor for the total amount of AED 340 million. The court-appointed experts panel submitted an initial and supplementary reports and concluded that the sub-contractor is only entitled to an amount of approx. AED 7.5 million.

While already a victory in defeating the initial claim, we appealed this decision, as did the opposing party, and while it was affirmed by the Abu Dhabi Court of Appeal, we and the opposing party have made a further appeal before the Abu Dhabi Court of Cassation. The Court of Cassation initially decided to suspend the enforcement of the appealed judgment pending the issuance of the final judgment.

How we added value

Our team’s mastery of the complex technical aspects of the dispute was critical to putting our clients’ case effectively to the expert panel, while our appellate experience was also of vital importance. As a firm we pride ourselves on our deep sector knowledge when it comes to construction, real estate and infrastructure projects and this understanding often plays a key part in our client’s success.

Further, our understanding of the Courts and their processes in Abu Dhabi, as well as all the Emirates, meant we were pivotal in both ensuring the case moved forward in a cost-effective and timely manner. In all our cases we are acutely aware of the potential costs and consequences for our clients of lengthy, drawn-out litigation.

Additionally, this matter is important due to the large value of the claim and the global prominence of the project, as well as the complicated technical aspects of the dispute.