CROSS BORDER DISPUTE RESOLUTION
International dispute settlement is a mechanism to resolve disagreements between two or more
international parties (including sovereign parties and , internationally active non-state parties, such as
large corporations. There are a diverse set of techniques used in international dispute settlement,
including negotiation, mediation, arbitration, and adjudication.
What is an arbitration clause?
An arbitration clause is a clause in a contract or agreement requiring the contracting parties to arbitrate,
rather than litigate, in the event there is a disagreement or dispute regarding the terms of the contract.
Arbitration is a form of dispute resolution where the disputing parties agree that one or several individuals
can rule on the dispute after the presentation of evidence and the hearing of arguments. Arbitration
clauses can prevent parties to a contract from suing in court if the arbitration clause is found to be valid
How does dispute resolution work?
The terms “dispute resolution” refers to a number of processes that can be used to resolve a
conflict, dispute, or claim. Dispute resolution processes are alternatives to litigating in court.
Examples of dispute resolution include arbitration, in which a decision maker (or makers) decides
the outcome based on the presentation of evidence, or more consensual processes (such as
mediation or conciliation), where the parties reach an agreement based on discussions facilitated by
a neutral third party.
Why is dispute resolution helpful?
Dispute resolution is helpful because it provides multiple avenues for conflicting parties to put an
end to their dispute and resume cooperative relations. Because there are so many forms of dispute
resolution, parties may choose the method that they believe will work best for them in their
specific situation.
What is the alternative dispute resolution process?
Alternative dispute resolution, sometimes called “appropriate dispute resolution” or “ADR,” is a
term referring to dispute resolution mechanisms that may be used instead of traditional litigation.
Processes like arbitration, mediation, conciliation, and negotiation might all be considered forms of
alternative dispute resolution. The process for ADR depends on the type of dispute resolution
chosen; the process can consist of a meeting between the parties to attempt to negotiate a
settlement, or it may entail a more complex evidence-driven process, such as international
arbitration.
Alternative dispute resolution in UAE
The UAE is a signatory to the UN Convention on the Recognition and Enforcement of
Foreign Arbitral Awards 1958 (New York Convention).ADR is generally understood to
mean methods of dispute resolution other than through the intervention of courts or
arbitration. There is no statutory framework for enforcing decisions of boards set up for the
purpose of conciliation, mediation or expert evaluation. There are also no specific dispute
resolution boards. The Chambers of Commerce of each of the Emirates have their own
arbitration and conciliation rules. There is however no mechanism to enforce an order of a
conciliation board.
Disputes before the federal courts must be referred to the Reconciliation and Settlement
Committee (Committee). If the parties come to an agreement before the Committee, that
agreement is binding and enforceable. In the absence of an agreement, any order of the
Committee is not enforceable. The Committee usually refers the dispute to the courts if a
settlement is not reached.
In Dubai, a Special Judicial Committee constituted by law (Dubai Law No. 2 of 1993
setting up a special judicial committee for the resolution of disputes between landlords and
tenants) has exclusive jurisdiction to determine all landlord and tenant disputes. The
Special Judicial Committee's order is final, binding and enforceable. There is a Centre for
Amicable Settlement of Disputes in Dubai.
In addition, all disputes between employer and employee must be first referred to the
Ministry of Labour for settlement. However, an order made by the Ministry is not final and
binding. In the absence of any mutual agreement, the final determination is made by the
courts.
