The Dubai Court of Cassation has established a new legal principle, according to which – and in accordance with Article 102 of the civil procedures law – a court that is hearing a dispute must stop the proceedings if the same case is also being heard in a different emirate and a verdict is pending there.

The legal principle was issued when the Court of Cassation heard the case of a dispute between two commercial firms. One of the companies filed a suit at the Dubai Court of First Instance, asking for endorsement of the arbitration ruling issued in its favour by the commercial arbitration centre of the Dubai Chamber of Commerce and Industry.

Meanwhile, the other company filed a suit at a Ras Al Khaimah court, asking for a cancellation of the DCCI arbitration centre's ruling. The Dubai Court of First Instance ruled that the case shall be stopped pending a final verdict from Ras Al Khaimah. The company challenged the court's move at the Court of Appeal, which upheld the Court of First Instance ruling. The company again challenged the verdict at the Court of Cassation.

The Ras Al Khaimah court, meanwhile, ruled that the arbitration centre's ruling is not valid, and the RAK Court of Appeal upheld the verdict.