Dubai Court of Cassation Reaffirms Rights to Enforce Foreign Judgments in the UAE

In a recent ruling on August 15, 2024, the Dubai Court of Cassation in Case No. 339 of 2023 (Civil) affirmed that foreign court judgments can be enforced in the UAE, even when the UAE courts could have originally handled the dispute.

Case Background

The case involved a judgment creditor seeking to enforce a monetary judgment issued in Poland within the onshore Dubai courts. Initially, the enforcement judge allowed the Polish judgment to be enforced in the UAE. However, the defendant appealed, and the Court of Appeal overturned this decision. The judgment creditor then escalated the matter to the Court of Cassation.

Court of Cassation's Ruling

The central question was whether the UAE courts could refuse to enforce a foreign judgment on the grounds that they had jurisdiction over the original dispute due to the defendant’s residency in the UAE. The judgment creditor argued that the defendant's UAE residency did not preclude the lawsuit from being filed in Poland, especially since the judgment pertained to an incident that took place there.

Historically, under Article 235 of the old Civil Procedures Law No. 11 of 1992, UAE courts could deny enforcement of foreign judgments if they had jurisdiction over the underlying dispute, even if that jurisdiction was not exclusive. However, the Court of Cassation clarified that the law has since evolved. The current legal standard, as outlined in Article 85 of Cabinet Resolution No. 57 of 2018 (and its amendments), specifies that enforcement of foreign judgments in the UAE can only be refused if the UAE courts have exclusive jurisdiction over the matter.

In this case, since the UAE courts did not have exclusive jurisdiction, there was no legal basis to deny enforcement of the Polish judgment.

Conclusion

This ruling underscore the UAE courts' openness to enforcing foreign judgments, providing reassurance to claimants who choose to resolve disputes in foreign jurisdictions while maintaining the ability to enforce favourable outcomes within the UAE.

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