What is Direct Legal Action in the UAE? Direct Legal Action in the UAE can be defined as the lawsuit filed by the creditor against their debtor’s debtor. This right is granted to the creditor based on a specific provision of law.
Direct Legal Action is characterized by features that distinguish it from other claims available to creditors (such as the Action for Simulation (Action Paulienne) or the Action to Prevent Disposition). It is considered an exception to the principle of the relative effect of contracts.
Under the Civil Transactions Law, a contract establishes a set of obligations only between its two parties (i.e., between the original creditor and the original debtor). However, Direct Legal Action permits the creditor to bypass the relativity of the contract’s effects and claim directly against their debtor’s debtor.
Furthermore, unlike the Indirect Legal Action, in Direct Legal Action, the creditor is not acting as a representative (agent) of their debtor in the lawsuit; rather, they are considered the original plaintiff acting on their own behalf against their debtor’s debtor.
Conditions for Filing a Direct Legal Action in the UAE
The conditions for filing a Direct Legal Action in the UAE are as follows:
- The creditor’s right against the original debtor must be due and payable.
- The creditor’s right must be undisputed; that is, there should be no ongoing legal conflict between the creditor and their original debtor.
- There must be a clear legal text that grants the creditor the right to file the Direct Legal Action against their debtor’s debtor.
- In addition to the above, the general substantive and formal conditions for filing any lawsuit must be met, including the conditions of **Standing (Al-Sifah), Capacity (Al-Ahliyyah), and Interest (Al-Maṣlaḥah), as well as the conditions of subject-matter, pecuniary value, and territorial jurisdiction of the court.
By contacting Samaha Legal Consultants Office, you can ascertain all the necessary conditions for Direct Legal Action in the UAE and ensure the legal application of these conditions.
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Steps for Initiating a Direct Legal Action in the UAE
The steps for initiating a Direct Legal Action are similar to those of any other civil lawsuit filed before the civil courts. The Direct Legal Action must be filed in accordance with the provisions of the Civil Procedure Law. This involves including all the mandatory data in the lawsuit and then registering it directly with the competent court administration or submitting it electronically through the applications available with the UAE Ministry of Justice.
The claim in the Direct Legal Action, filed by the creditor against their debtor’s debtor, must meet all the necessary conditions and documents. It is highly advisable to submit it through a lawyer specialized in such claims, such as Samaha Legal Consultants Office.
The Significance and Effects of Direct Legal Action
The significance of Direct Legal Action in the UAE stems from the effects it has on the creditor, their debtor, and the debtor’s debtor.
Effects on the Creditor
- Claiming against their debtor’s debtor in their personal name, without needing to join their original debtor as a party to the lawsuit.
- Exclusion from competition by other creditors. Other creditors cannot participate in dividing the funds claimed through the Direct Legal Action on a pro rata basis (qismat ghuramā’), provided the Direct Legal Action has been filed.
- Direct Legal Action is generally free from defenses that the defendant (the debtor’s debtor) might raise against the original creditor. The debtor’s debtor does not have the right to pay the debt to their original creditor after the lawsuit has been filed.
- Filing a Direct Legal Action does not constitute a waiver of the creditor’s right to claim against their original debtor; they can claim against both parties.
Effects on the Original Debtor
The most important effect of the Direct Legal Action in the UAE on the Original Debtor is that they cannot claim the debt from their debtor’s debtor and are not entitled to collect that debt once the lawsuit is properly filed and notified to them. The inability of the original debtor to dispose of the debt subject to the Direct Legal Action also means they lose the right to conclude a settlement with their debtor’s debtor or to completely waive the debt.
Effects on the Debtor’s Debtor
These effects include the inability of the debtor’s debtor to reject the lawsuit, as it is considered one of the original claims established by law, filed by the creditor in an original capacity, not as a representative of the debtor.
Consequently, upon being formally notified of the Direct Legal Action against them, the Debtor’s Debtor must not proceed with paying the debt to their original creditor. However, if the payment was made before they were notified of the lawsuit and they were unaware of it, the payment is considered valid, and they can plead before the court that the plaintiff is no longer entitled to their claim based on this payment.
It is worth noting that the liability of the original debtor and their debtor’s debtor towards the creditor in the Direct Legal Action in the UAE is considered joint and several liability.
You can understand the effects of Direct Legal Action in the UAE on the creditor, the debtor, and the debtor’s debtor by consulting a specialized lawyer, such as Samaha Legal Consultants Office.
Examples of Direct Legal Action
there are examples of Direct Legal Action in the UAE, including, but not limited to:
- The landlord’s claim against the sub-tenant (sublessee).
- The injured party’s claim against insurance companies in car accidents.
- The real estate buyer’s recourse against the contractor who contracted with the property seller.
When is a Direct Legal Action Dismissed in the UAE?
A Direct Legal Action is dismissed if the necessary conditions for filing the lawsuit are not met. For instance, if the debt claimed by the creditor is not yet due and payable, or if the lawsuit is filed directly against the debtor’s debtor after the debtor’s debtor has already paid the debt to their original creditor.
If you require a lawyer’s consultation regarding Direct Legal Action in the UAE, please contact Samaha Legal Consultants Office, where you will receive full legal support from the best lawyers specializing in civil cases. Contact Us.