Introduction
Abu Dhabi Global Market ("ADGM") is a financial free zone, established in October 2015 under Abu Dhabi Law No. 4 of 2013. It is an internationally recognized financial hub serving the Al Maryah and Al Reem Islands, where the Abu Dhabi Global Markets Courts ("ADGM Courts") were established in 2016. ADGM is a common law jurisdiction in a predominantly civil law environment of the Middle East, wherein the ADGM Courts have jurisdiction over the disputes which arise between parties operating under ADGM. ADGM provides a specialized approach to resolving disputes by constituting a three-tier division, for civil and commercial disputes ("Civil and Commercial Division"), small claim disputes ("Small Claims Division") and employment disputes ("Employment Division"). The legal framework governing these divisions are set out under the Court Procedural Rules, 2016 ("CPR") and each division has its own set of Practice Directions ("PD"), governing their conduct.
In our previous article, we had discussed and reflected upon the intricacies of answering a claim before the ADGM Courts. Building upon that foundation, this brief overview further elucidates the case management conferences ("CMC") and the nuances thereof.
Case Management Conference
In order to enable the effective handling of cases in AGDM, CMCs are set-up to identify the real issues in the dispute between the parties before a trial is formally initiated. A CMC can be either be set-up by the relevant court or by mutual consent of the parties in dispute. In a CMC, the objective of the courts is to bring in a consensus between the parties on the procedure to be followed for conducting the pre-trial review and streamlining the provisional timetable for the trial. The procedure governing a CMC, at the pre-trial stage, is provided for under Rule 79 of the CPR.
As per Rule 79(1) of the CRP and PD 2.43, in the Civil and Commercial Division, an initial CMC is typically conducted by the court to pass directions governing the procedure to be followed by the parties during the pre-trial management, and is held electronically or telephonically, within 14 (fourteen) days of the close of the pleadings. The procedure governing the initial CMCs in the Small Claims Division and the Employment Division is set out under PD 3.9 and PD 4.36 to PD 4.30, respectively. As per PD 2.9, applicable to the Civil and Commercial Division, and as per PD. 4.38, applicable to the Employment Division, the legal representatives of the parties are required to be present during the CMCs and must inform the court of the directions which the parties seek from the court, submit agreed list of issues (if any) and the list of witnesses and other documents, which are essential for the effective disposal of the dispute.
In the initial CMC, the court may consider and reflect upon whether the parties have attempted to settle the dispute, which is an option the parties may consider while filing the directions questionnaire no later than 4 (four) days before the initial CMC. The court may additionally consider any disclosure of documents or amendments to the claim, if required, and any proposed directions or list of issues that the parties have agreed between themselves during the initial CMC. Further, the court may fix a timetable for the conduct of the pre-trial review of the dispute, give directions to the parties to undertake any further steps at the pre-trial stage and/or provide a provisional list of the dates for the trial. This timeframe allows for swift progression in case management. The following are the parameters that the courts may consider during the initial CMC for effective management of the case and a consequent speedy redressal during the trial:
- Additional CMC: As per Rule 79(2) of the CPR, the court may,
upon the request of a party or of its own accord, hold additional
CMCs at any time, if deemed necessary. Under PD 2.37, in the Civil
and Commercial Division, the same is done periodically to review
the steps undertaken by the parties for the furtherance of the case
and to ensure that the parties arrive at a consensus on the matters
in issue.
The court may also pass directions to the parties, in case it is of the view that the parties are lacking the attempt to arrive on a consensus for the furtherance of the case through CMC. The parties also have the right to seek variation in the timetable of the CMC. - Directions questionnaire, proposed directions and agreed list of issues: In the Commercial and Civil Division, as per PD 2.44, each party to the dispute is obligated to file a directions questionnaire, proposed directions and an agreed list of issues no later than 4 (four) days before the initial CMC. The directions questionnaire entails the details of the case for fair and effective management, including but not limited to the nature of the dispute, statements of the case, any stay if the parties so seek, list of issues and proposed directions which they seek from the court. The format for the direction's questionnaire is provided for in Appendix A to the CPR. Proposed directions mean the directions which the parties may seek from the court in its order and the parties are required to file such proposed directions in the format provided in Appendix B to the CPR. Additionally, an agreed list of issues, likely to arise in the proceedings, are required to be filed before the initial CMC. The claimant is required to file with the court the agreed proposed directions and list of issues. However, if the parties are not agreeable on a list of issues and/or proposed directions, each party is required to file and serve upon the other party their respective list of issues and/or proposed directions. It is apposite to mention that the courts also have the power to itself decide on the significant issues in dispute. However, as per PD 4.36, the directions questionnaire is required to be filed within 7 (seven) after filing of the defence or any subsequent reply, in the Employment Division.
- Pre-trial timetable: In the Civil and Commercial Division, as per PD 2.47, the court may at the initial CMC decide the pre-trial timetable encompassing the pre-trial steps required to be undertaken, including, but not limited to, preparation of a pre-trial checklist, carry out pre-trial review, and decide if any further CMC is required or pass an order on fixing of the provisional trial dates.
- Pre-trial checklist: As per Rule 82 of the CPR, the court may issue a pre-trial checklist, which shall be completed by the parties. The pre-trial checklist has to be filed and served on all other parties 5 (five) days before the date of the pre-trial review and shall be in the form set out in Appendix D of PD2.
- Progress monitoring: A progress monitoring date may be fixed by the court at the initial CMC. The parties are supposed to file a procedural compliance statement, in accordance with Appendix C of PD2, certifying that they have complied with the pre-trial checklist and are ready for commencement of the trial to at the provisional trial dates. The court may, on the progress monitoring date, decide if a further CMC is required to be conducted, or may combine the progress monitoring date with the pre-trial review.
- Pre-trial Review: As per PD2.54 and CPR 83, the court may conduct a pre-trial review, 4 (four) to 8 (eight) weeks before the commencement of the trial. The parties are required to submit a pre-trial checklist 5 (five) days before the pre-trial review, while the claimant is to file with the court the agreed timetable/trial dates for the trial, including but not limited to the provisional dates for the oral submissions, list of witnesses of fact and submission of expert evidence, along with the copy of the proposed directions. At the pre-trial review, the court formalises the timetable for the trail. The said timetable, as per PD 2.60, may be adjusted by a written consent order as entailed in form CFI 22 along with form CFI 36, providing a justification for the adjustment sought.
The above-mentioned procedure, for conducting of the CMC is followed in each division, with minor timeline variations.
Costs Budget
Costs Budget is a statement of the estimated costs which the parties estimate to be incurred by them during the dispute, and states briefly, the costs to be incurred in respect of every phase of the proceedings.
In the three divisions, and as per PD 9.10, all parties must indicate whether they seek to submit the costs budgets statement. If the parties agree on submitting the statement, it must be exchanged between the parties no later than 4 (four) days before the initial CMC. Such statements are required to be filed as per the prescribed form Costs 7 under PD9. The court thereafter reviews the cost budgets filed by the parties, pursuant to which, it passes a cost management order, which may be revised in case further costs are incurred later. The costs budget may initially be limited for the start of the proceedings, but may be extended as the proceedings progress.
Stay to Allow for Settlement of the Case
As per Rule 78 of the CPR, a party may make a written request, at the time of filing the directions questionnaire, to the court, to stay the proceedings for the settlement of the case through alternative dispute resolution mechanisms. If the parties agree on a stay, the stay is allowed at the discretion of the court, for a month. This method is frequently recommended since it can result in speedier resolutions, without requiring a complete trial. The court may extend the stay for such a period as it considers appropriate.
Conclusion
In conclusion, the ADGM Courts' structured approach to case management is essential for quick settlement of conflicts among all of its divisions. A thorough framework for such management is made possible by the combination of procedural timetables and crucial elements including the directions questionnaire, pre-trial checklists, timetables, reviews and conducting CMCs. In addition to expediting the dispute redressal and efficient management of the case at the trial stage, the proactive steps undertaken during the CMC, for bringing consensus between the parties, strengthen ADGM's resolve to serve as a regional centre for conflict resolution.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
