What is Direct Action in the UAE? There are certain conditions and steps required to file a Direct Action lawsuit in the UAE. It is essential to understand what a Direct Action lawsuit is and why raising such a claim is important. We will explain everything concerning Direct Action in the UAE.
If you need legal consultation regarding Direct Action in the UAE, you should contact Samaha Law Firm in the UAE.
What is Direct Action in the UAE?
The concept of Direct Action in the UAE emerges through a lawsuit filed by the creditor against their debtor’s debtor, based on a right obtained through a specific legal provision.
The Direct Action in the UAE is characterized by certain features that distinguish it from other types of claims available to the creditor, such as the Simulated Action (Dawa Suriya), the Paulian Action (Dawa Polissiya), or the Action to Prevent Disposition. It is considered an exception to the principle of the relativity of contractual effects.
According to the UAE Civil Transactions Law, a contract can only generate obligations between its parties, meaning between the original creditor and the original debtor. The Direct Action in the UAE allows the creditor to bypass the relativity of contractual effects and directly sue their debtor’s debtor.
Furthermore, Direct Action in the UAE, unlike the Indirect Action, does not consider the creditor to be acting as a representative of the debtor in the lawsuit. Instead, the creditor is regarded as the original plaintiff acting on their own behalf against their debtor’s debtor.
Conditions for Direct Action in the UAE
The conditions for Direct Action in the UAE can be summarized as follows:
- The creditor’s right against the original debtor must be due and payable.
- The creditor’s right must be undisputed, meaning there is no judicial contention between the creditor and their original debtor.
- There must be a legal text that grants the creditor the right to file the Direct Action lawsuit against their debtor’s debtor.
- The substantive and procedural requirements for filing any lawsuit must also be met, including the conditions of capacity (Ahliyya), standing (Sifa), and interest (Maslaha), as well as the condition of the subject-matter, value, and territorial jurisdiction of the court.
Steps for Filing a Direct Action in the UAE
The steps for filing a Direct Action in the UAE do not differ from other types of civil actions, as it is filed before the civil courts in the UAE.
It must be filed in accordance with the provisions of the UAE Civil Procedures Law by including all mandatory data in the statement of claim. The claim is then either registered directly with the competent court administration or submitted electronically through the applications available with the UAE Ministry of Justice.
The claim in the Direct Action in the UAE must be made by the creditor against their debtor’s debtor, fulfilling all required conditions and documentation. It is best submitted through a specialized lawyer, a service which Samaha Law Firm in the UAE can provide.
Importance of Direct Action in the UAE
The importance of Direct Action in the UAE is evident through the legal effects resulting from this lawsuit on the creditor, their debtor, and the debtor’s debtor.
Effects of the Action on the Creditor
These effects include:
- Suing the debtor’s debtor in the creditor’s personal name, without the need to include the original debtor in the Direct Action in the UAE.
- None of the other creditors can contest the right claimed by the creditor through the Direct Action in the UAE. They cannot divide the debtor’s debtor’s funds pro-rata among creditors (qismat ghurama) in the case of filing a Direct Action in the UAE.
- The Direct Action in the UAE may be considered free from any defenses by the defendant against the creditor’s original debtor. The debtor’s debtor does not have the right to remit the debt to their original creditor after the action has been filed.
- Filing the Direct Action in the UAE does not mean the creditor waives their right to claim against their original debtor; the creditor can still claim against both parties.
Effects of the Action on the Original Debtor
The most important effect arising from the Direct Action in the UAE for the original debtor is their inability to claim the debt from their own debtor, and they lose the right to collect that debt once the Direct Action in the UAE has been filed and they have been duly notified. Furthermore, the original debtor is prevented from disposing of their debt owed by their debtor against whom the Direct Action in the UAE is raised, which also means they lose the right to reach a settlement or waive that debt.
Effects of the Action on the Debtor’s Debtor
These effects are manifested by the debtor’s debtor’s inability to reject the Direct Action in the UAE, as it is considered one of the original actions prescribed by law, raised by the creditor in their original capacity and not as a representative of the debtor.
Consequently, the debtor’s debtor, upon being notified of the Direct Action in the UAE against them, must not proceed to pay the debt to their original creditor. However, if they made the payment before being notified of the action and were unaware of it, that payment is considered valid, and they can plead before the court that the plaintiff is not entitled to their claim.
Finally, we must inform you that the liability of the original debtor and their debtor towards the creditor in the Direct Action in the UAE is considered joint and several liability (Mas’ouliyya Tadamuniyya).
Are There Examples of Direct Action in the UAE?
Examples of Direct Action in the UAE include: the lessor’s action against the sub-lessee, the injured party’s action in car accidents against insurance companies, and the action of the property purchaser against the contractor who contracted with the property seller.
When Can a Direct Action in the UAE Be Dismissed?
A Direct Action in the UAE may be dismissed if the required conditions for filing the action are not met, such as if the debt claimed by the creditor is not due and payable, or if the Direct Action in the UAE is raised against the debtor’s debtor after the latter has already paid the debt to their original creditor.
We have now clarified everything concerning Direct Action in the UAE. If you need legal consultation regarding Direct Action in the UAE, you should contact Samaha Law Firm in the UAE. Samaha Law Firm is always your best choice for obtaining your consultations.