Qatar Civil and Commercial Court Official Practice Guide

On 28 July 2012 I discussed the Qatar International Court and Dispute Resolution Centre and on 28 June 2011 the Qatar Financial Centre: Civil and Commercial Court Regulations. The practice of the Court is now set out in an Official Practice Guide which has been prepared by the judges under the supervision of Lord Cullen with the approval of Lord Woolf.

Overview
Compared to the English court guides, the Official Practice Guide is very short, consisting of no more than 10 pages.   Its purpose is to

"provide parties to disputes and their legal representatives with practical information as to the general approach of the Court and what is expected of them in cases before the Court. Although the Practice Guide is issued under Article 37.2 of the Court’s Regulations and Rules of Procedure (“Regulations”), its contents do not have the force of law. However, the Practice Guide may be taken into account by the Court in assessing the conduct of parties to the litigation, for example, when a question of costs arises."

Constitution of the Court

The Guide explains that the Court two Divisions: a First Instance Division and an Appellate Division. Each of the judges is able to sit in either Division.  Trials take place before a single judge sitting alone while appeals lie to a bench of three.  

Jurisdiction

Challenges to the Court's jurisdiction are to be raised at the earliest practical opportunity.  Cause will have to be shown if a challenge is made at a later stage.  The Court may also decline jurisdiction of its own initiative or transfer cases to another court in Qatar.   It may accept jurisdiction if the parties so choose provided that there is a sufficient connection with Qatar.

Case Management

As in England cases are actively managed by the Court in accordance with the overriding interest.

Statements of Case

Again as in England, claims are begun by the issue of a claim form. The claimant must state the nature of the dispute, the facts relied on (but not the evidence), the legal basis for the claim and the remedy sought.   He or she should attach all documents that are of particular importance to the his or her case.  The defendant should indicate whether the claim or any part of it is admitted. To that end the defence should indicate to what extent the facts relied on by the claimant are accepted, or, as the case may be, are disputed.

Language

Proceedings are usually conducted in English but parties have the right to use Arabic if they so wish.

Representation

Any lawyer qualified to practise before a superior court of any jurisdiction has the right to appear in the Court. Directions hearing can be conducted by telephone or video link.

Judgments

Judgments are published on the Court's website in English and Arabic.  They are enforced by an Enforcement Judge.  

ADR

As I mentioned in  Qatar International Court and Dispute Resolution  the Court has extensive facilities for mediation and other forms of ADR and parties are encouraged to use them.

Further Information
Should anybody wish to discuss this topic further, he or she can call me on +44 161 850 0080 or fill in my contact form. He or she can also contact me through Facebook, Linkedin, Xing or twitter.

Qatar Financial Centre: Civil and Commercial Court Regulations

On 15 Dec 2010 the Council of Ministers of Qatar adopted Regulations and Procedural Rules ("the Regulations") for the Qatar Financial Centre Civil and Commercial Court. These repeal the Practice Guide issued by Lord Woolf, the Court's President, on 25 April 2009. They are intended to be a self-contained code for the administration of justice by the Court (art 2.3 of the Regulations). They can be amended only with the approval of the Council of Ministers but they can be supplemented by practice directions and practice guides issued by the Court.The Regulations are divided into 37 articles.

The QFC Civil and Commercial Court

I discussed the Qatar Financial Centre ("QFC"), its constitution, legislation and its Civil and Commercial Court in my article "Qatar Financial Centre" on 3 April 2011. In that article I described that court as "distinct and separate from, and independent of, all other Qatari courts." Unless the rest of the Qatari legal system the QFC Civil and Commercial Court is a common law court. Most of its judges come from common law jurisdictions. Though parties have the right to use Arabic, English is the language in which proceedings are usually conducted.

Jurisdiction

Art 8.3 (c) of the QFC Law confers jurisdiction on the Court to hear the following disputes:

• Civil and commercial disputes arising from transactions, contracts, arrangements or incidences taking place in or from the QFC between the entities established therein.
• Civil and commercial disputes arising between The QFC authorities or institutions and the entities established therein.
• Civil and commercial disputes arising between entities established in The QFC and contractors therewith and employees thereof, unless the parties agree otherwise.
• Civil and commercial disputes arising from transactions, contracts or arrangements taking place between entities established within The QFC and residents of The State, or entities established in the State but outside The QFC, unless the parties agree otherwise.

Art 9.2 of the Regulations enables the Court to take account of any choice of law clause giving the Court jurisdiction. Art 9.3 enables it to entertain any matter in respect of which the QFC Law or Regulations grant it jurisdiction.

Overriding Objective

Like the Civil Procedure Rules ("CPR") there is an overriding objective to which the Court must give effect when exercising its functions and powers (art 4.1 and 4.2). Art 4.1 provides that the overriding objective is to deal with all cases justly. "Dealing with cases justly" includes so far as practicable:

• ensuring that litigation before the Court takes place expeditiously and effectively using appropriately of the Court and of the parties than is necessary;
• ensuring that the parties are on an equal footing;
• dealing with cases in ways which are proportionate to the amount of money involved, to the importance of the case, to the complexity of the issues, facts and arguments, and to the financial position of each party; and
• making appropriate use of information technology.

As in England it is the duty of the court to deal with all cases in accordance with the overriding objective (art 4.4) and of the parties to assist the Court to do that (art 4.5).

ADR and Arbitration

The Court is required by art 5.1 to encourage parties whenever it is appropriate to do so to encourage parties to resolve disputes by arbitration, mediation or other alternative method of ADR. It may actually require parties to settle their dispute by ADR (art 10.2.2 of the Regulations). It has power under art 25.1 to stay proceedings for mediation or other ADR and it may offer such other assistance as the parties may require to resolve their dispute in this way under art 25.2. Finally, the Court may recommend the establishment of a dispute resolution centre pursuant to art 9 of the QFC Law.

The Registry

Art 7.1 of the Regulations require the President to appoint a Registrar and to cause a Registry to be established. The Registry is responsible for the management of the Court and also for case management including the filing of documents under art 8.

Commencing Proceedings

Proceedings are commenced by the issue of a claim form (art 17.1). A claim form is issued by the Registry between 07:00 and 14:00 on any day except a Friday, Saturday or public holiday (art 17.2 and art 14.2). The claim form must include:

• the names, postal and email addresses, telephone and fax numbers of the parties;
• the nature of the dispute setting out the facts relied upon and attaching relevant documents;
• the basis on which it is alleged that the court has jurisdiction;
• the legal basis of the claim including any legislation relied upon, and
• the remedy requested.

The claim form must be verified by a statement of truth (art 16.1). The claim form must be served by the claimant and not by the court (art 18.1). Claims may be served abroad without the permission of the Court provided that local rules for service are complied with (art 18.3).

Responding to a Claim

Unless he or she applies to challenge the jurisdiction of the Court within 14 days of service of the claim form under art 19.1 of the Regulations, a defendant must file a defence within 28 days (art 20.1).

Case Management

The Court has power under art. 10.1 to take all steps that are necessary or expedient for the proper determination of a case. That includes

• such orders as it considers expedient in relation to the management of cases;
• requiring the parties to settle their dispute by ADR;
• admitting evidence of fact or expert evidence on such terms as it considers appropriate;
• receiving evidence on oath or affirmation;
• ordering disclosure; and
• awarding costs.

Procedural directions may be given by a Judge or the Registrar (art 15.4).

Hearings

Hearings and appeals are conducted by panels of three judges (art 12.2) which may delegate one of their number to hear an issue or application whenever it is considered to be in the interests of justice and good administration (art 12.5).

Remedies

Art 10.3 confers power on the Court to grant all such relief and make all such orders as may be appropriate and just in accordance with the overriding objective. That includes:

• an order that a party pay a sum of money;
• damages (including damages in lieu of an injunction);
• prohibitory and mandatory injunctions;
• specific performance;
• declarations;
• restitution;
• disgorgement of profits;
• an account; and
• an order for the payment of interest.

The Court has power to fine those who fail to comply with or disobey its orders under art 34.3.1 but it does not appear to have any power to commit though it can refer such contravention to the competent agency or authority of the state pursuant to art 34.3.3.

Appeals

Although a decision at first instance is usually final there is a right of appeal to a panel of three justices on the grounds of error of law where there is a risk of serious injustice under art 35.1.

Further Information

Should any party wish to discuss this article further, he or she should get in touch with me through my contact form.

Qatar Financial Centre

Like Dubai, Qatar has established a financial centre with its own legal system which is called the Qatar Financial Centre ("QFC"). The Centre has its own constitution, primary and secondary legislation and institutions including a Civil and Commercial Court that is distinct and separate from, and independent of, all other Qatari courts.

The QFC Constitution

The CFC is established by Law No. 7 of 2005 ("the QFC Law") which was signed by the Emir of Qatar on 9 March 2005 and came into force on 1 May of that year. Art 2 (1) of the QFC Law provides for a business and financial centre to be located initially in Doha. It is possible under art 2 (3) for businesses located elsewhere in Qatar to be treated as though they were operating in the Centre provided that they undertake to relocate to the Centre. Art 3 (1) provides for the QFC to be governed by a QFC Authority consisting of a Board chaired by the Minister of Economics and Finance of Qatar and up to 9 other members appointed by the Council of Ministers. The Board's duties include laying down general policies and plans for the centre (para 5.1 of Sched 1 to the QFC Law) and proposing legislation to the Minister (para 5.2). Art 8 establishes a regulatory authority, regulatory tribunal and Civil and Commercial Court. The Minister has power under art 9 to enact primary legislation known as "regulations" for the QFC within the scope of Schedule 2 which includes intellectual property (para 10 of Sched 2).

Legislation

So far the Minister has made regulations for arbitration, companies, contracts, data protection, employment, financial services, immigration, partnerships, tax and trusts. Some of those regulations provide for the QFC Authority to make secondary legislation known as "Rules". Art 21 (1) of the Data Protection Regulations 2005. for example, enables the QFC Authority to make rules in respect of any matter relating to the processing of personal data and data controllers. Accordingly, the Authority has made the Data Protection Rules which cover the processing of sensitive data, transfers of data out of the QFC, notification and claims to the Regulatory Authority for relief for alleged breaches of the Data Protection Regulations.

The Civil and Commercial Court

Para 1 of Sched 6 of the QFC Law provides for the Civil and Commercial Court to be governed by a Chairman and a number of other legally qualified members none of whom may be members of the Board. None of those members may sit on the Board, regulatory authority or any other QFC institution. Para 8 of that Schedule provides for the Court to have original and appellate jurisdiction for which purpose it sits in First and Appellate Circuits.

Judiciary

The President of the QFC Civil and Commercial Court is Lord Woolf . the former Master of the Rolls. Other judges include Lord Cullen, Lord Scott, Sir Philip Otton, Sir Peter Gibson and Barbara Dohmann QC. There are also judges form other jurisdictions and academia.

Case Law

Judgments of the Court are published on the QFC website. Particularly interesting is the recent decision of the Court in Re Al Mal Bank LLC, Omara and Another v Al Mal Bank LLC where it considers its jurisdiction to make freezing orders in a company insolvency in the absence of a rule book.

Further Information

Any member of the Bar of England and Wales or of any other jurisdiction may appear before the QFC Court. There is already a set of chambers in Qatar though none of its members claims expertise in intellectual property. Should anybody wish to discuss this article further he or she can get in touch through my contact form.