DIFC Court: Law of Arbitral Seat Governs Arbitration Agreement, Even if Contract Has Different Governing Law

The Dubai International Financial Centre (DIFC) Court held that the law of the arbitral seat governs the arbitration agreement, even if the main contract is subject to a different governing law.

Justice Sir Jeremy Cooke ruled in a dispute between Oswin and Otila & Ondray over a joint venture operating a hazardous waste facility.

The Court rejected the defendants’ claim that UAE federal law and Abu Dhabi courts had exclusive jurisdiction, holding that the JVA’s arbitration clause constituted an independent agreement.

The Court maintained the injunction restraining unilateral management actions until the arbitral tribunal resolves the dispute. 

[Oswin v Otila]