The Abu Dhabi Court Considers Special Authority is Required to Conclude an Arbitration Agreement by Power of Attorney

The Abu Dhabi Court Considers Special Authority is Required to Conclude an Arbitration Agreement by Power of Attorney

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Gary Born and Matteo Angelini summarize the Abu Dhabi Court of Cassation judgement which considered the requirements that must be satisfied to conclude an arbitration agreement by powers of attorney. This is the latest in a line of authorities confirming that special requirements apply to the formation of arbitration agreements.

Excerpt: The decision indicates that some courts in the UAE continue to consider that an arbitration agreement is an exceptional arrangement that must be authorized in a special way. This is problematic because it is based on the notion that heightened requirements apply to the formation of arbitration agreements, including international ones, to ensure that parties are aware they are waiving their otherwise available access to judicial remedies in national courts. This view has, rightly, been rejected by the decisive weight of international authority. The notion that an agreement to arbitrate is an exceptional waiver of judicial remedies should be abandoned by national courts as it has no place in modern international commerce where arbitration is the natural mode of dispute resolution. Indeed, the New York Convention forbids the imposition of heightened requirements for arbitration agreements to be valid.

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