What are multi-tiered clauses for dispute resolutions?

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Multi-tiered clauses are dispute resolution clauses which includes a escalating-step system to resolve differences, which starts with a number of alternative dispute resolution steps (negotiation between senior managers, mediation, dispute boards, etc.), and ends with arbitration if the first alternative steps result unsuccessfully. In my experience, these clauses work as a filter only letting the most entrenched disputes go through to arbitration. On their nature, much has been discussed as to whether they are genuine arbitration agreements or something different. It is increasingly common in complex commercial contracts to see “multi-tier” ADR clauses.
It is important that these clauses are carefully considered. Clauses that simply say, for example, the parties are to engage in “good faith negotiations” before proceeding to arbitration, leave a number of issues open.

What to consider while drafting the clauses?

How long can the parties take in the negotiating process? If negotiations are futile, how does a party escalate the matter to the next level of ADR? When has a party not acted in “good faith” in a negotiation process? Generally in drafting, it is preferable to:

1. Specify how the ADR process is initiated. For example, it may be initiated by one party serving the other party with a notice setting out brief details of the dispute.

2. Set time limits on the various stages of the ADR process.
For example, the clause could provide that in the negotiation stage of ADR, the parties must make representatives with authority to settle the dispute available for the purpose of meeting in an effort to resolve the dispute and that such meeting must take place within 30 days of service of a notice of dispute. If the negotiation turns out to be fruitful and not enough time has been allocated, the parties can always agree to extend the time period. By setting a time limit, the parties eliminate the risk that either party will cause undue delay by declining to participate in the negotiation.

3. Spell out how a dispute is moved from one stage of the ADR process to the next.
This should be triggered by an indisputable event, e.g. expiry of a time period. In the example above, if the dispute is not settled by the authorized representatives in the 30 days, make it clear that the dispute shall proceed to be determined in accordance with the remainder of the ADR clause. Avoid the use of terms which may cause a dispute in themselves. For example, a requirement that negotiations be conducted in good faith adds nothing, other than an invitation to a dispute about whether one party acted in good faith.

4. Avoid the use of terms which may cause a dispute in themselves. For example, a requirement that negotiations be conducted in good faith adds nothing, other than an invitation to a dispute about whether one party acted in good faith.

Among the key issues that parties to an arbitration clause should consider is the place of the hearing for domestic contracts, and the place of arbitration for international contracts (i.e., contracts where the parties reside in different jurisdictions). Where the contract is a wholly domestic one, the location for the hearing may not be an issue if both parties reside in, say, DIFC (the parties would invariably designate the DIFC as the place for the hearing). However, if the parties reside in different cities and the contract does not designate a hearing location, unless the parties can agree, this will be up to the arbitrator to decide (adding time and cost to the process while this issue is being determined). The issue is very simply avoided by, for example, a clause specifying: “The arbitration will be held in DIFC, United Arab Emirates.”

It is worthwhile to mention effective ADR clauses mandate ADR (whether it is negotiation, mediation, expert determination, arbitration or a combination of all of them (i.e. a multi-tier clause). Ineffective ADR clauses unintentionally provide an option of ADR or litigation, for example providing that any disputes which cannot be settled by negotiation “may” be submitted to arbitration (not “must” or “shall”). Another error I have experienced is for a contract to contain, in successive clauses, both a consent to the jurisdiction of certain courts and a consent to arbitration, leaving it uncertain whether the parties intended arbitration to be the exclusive dispute resolution process. These errors are avoided by careful drafting and word choice.

How can I discount my debts with banks?

How to discount debts with banks in Dubai?

While it would be great if we all had plenty money to fund all of living costs without concern, we know that’s not the case. Sometimes we have to borrow a little to keep moving forward, and that’s when a personal loan can be a good solution. However, after that, it may gradually turn into an issue.

The terms of credit cards are very clear, but unfortunately some consumers may not take their time to pay attention to the terms and conditions.

Over the past five years, we have restructured many outstanding loans for clients based on our experience and knowledge in banking rules and regulations in order to reduce the interest rate according to their current income and financial capabilities.

If you are aware of those who are in default payment or paying the installments are becoming a nightmare, please contact us for a free legal advice before it’s too late.

How To Choose The Best Lawyer or Law Firm in Dubai?

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Tips for choosing the best lawyer or Law firm in Dubai?

Legal services are like any other product: the wise customer conducts a research before making a final decision.

Once short listed several lawyer referrals with knowledge in the appropriate practice area, then should carefully research each candidate. Below are three tips to choosing the best lawyer in Dubai for your legal assistance.

Conduct Interviews

One of the best ways to consider a lawyer’s legal capability is by meeting & interviewing the lawyer. Most lawyers will provide an initial consultation (usually an hour or less) free of charge.
Remember that a higher fee does not necessarily connect with a more qualified lawyer.

Consult Other Attorneys

Usually lawyers know more about the skill and reputation of other lawyers. Lawyers may be able to offer information about another lawyer which you may not find in a book or online such as information about a lawyer’s integrities, capability level, demeanor, practice behaviors and reputation.

Check Lawyer’s Law Office

You can know a lot about lawyers from their office. Request a short tour of his office, beyond the office or conference room where you met with the lawyer.

Is the law office well-ordered, well-organized and well-run? What kind of support staff does the lawyer employ? Does staff act friendly and helpful? Is the lawyer’s office local and simply accessible? Is a large portion of the office space unoccupied? Look for red flags such as mass disarray, unhappy staff, empty offices and unattended phone calls.

Family Law | Divorce, Paternity, Custody, Spousal & Child Support in Dubai

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Family law is the law that contracts with marriage and divorce, paternity, custody, spousal and child support, along with the many issues that come up with the married people, or people who are having children, and perhaps getting divorced. Family law also involve adoptions, custody, domestic violence, and grandparents’ rights.

Marital agreements are the agreements you and your partner can enter into before the marriage ,  during your marriage and if you decide to end your marriage.

we are dedicated to offering you the highest level of legal support possible during this difficult time. It is important to our team that your rights and best interests are always maintained. We are staying in close communication with our clients, addressing worries as they arise, and going the extra mile in and out of the courtroom.

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What is the penalty for drugs in Dubai?

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The Government of Dubai as well as other emirates in U.A.E. are very strict about the laws associated to possession and use of drugs and narcotics. AS per U.A.E.’s Law the regular minimum jail sentence for possession of drugs is 4 years followed by deportation. Possession of Drug in Dubai for the purpose of trafficking or promotion is punishable by death. For certain scheduled drugs, the punishment is death only upon recidivism.

There are number of medicines that are legally used in other countries, but, U.A.E. considers them as drugs and as a tourist or U.A.E. residence you must always check the laws and regulations before you enter U.A.E.

As per our case records, most of the people were arrested at the airport as they enter U.A.E. with possession of drugs for sale or personal use.

This rule is implemented by UAE Government for the purpose of happiness and safety of all families and people, especially the youth residing in Dubai and all UAE residences support and rank this Law.

Please contact us for legal assistance or consultation of legal cases related to drugs in Dubai.

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