Case studies from StartUp Magazine’s article “Your Guide to the Small Claims Tribunal” from September 2016 issue, Volume 4, Issue 12:
HOW A FOOD SERVICE COMPANY USED THE SCT TO INCENTIVISE CONTRACTORS TO DELIVER
In instances where contractors are not performing against agreed timelines, the delivery of work is often of far greater importance to a business than a financial settlement.
In a case involving a food service company, a contractor had been delayed by more than three months in the delivery of a key facility, which had a significant impact on the claimant’s operations. As soon as the contractor received notice of the claim, they were incentivised to complete the job in a timely fashion, and the dispute was subsequently settled amicably.
HOW TWO FINANCIAL SERVICES COMPANIES USED THE SCT TO REOPEN DIALOGUE
Disputes involving individuals and SMEs are often highly acrimonious and emotionally driven. In such cases, financial settlements are secondary to a simple apology.
The SCT can serve as a forum for an honest discussion around an issue, leading to a whole remedy that is much more meaningful than just an order to pay money.
In one case between two financial services companies, the parties had some animosity between them from past events, which had led to a breakdown in communication. Through discussion and questioning at the Consultation, which was the first time senior representatives from both parties had met face-to-face in some time, it was determined that an apology from one side to the other was all that was necessary to facilitate a settlement of the underlying claims.
USING MEDIATION SERVICES IN THE EVENT OF JURISDICTIONAL ISSUES
It is not uncommon for parties to find out at the consultation stage their case falls outside of the DIFC Courts’ jurisdiction. While their case cannot go forward to a hearing, if both parties consent, they can still use the SCT’s mediation services to try to find a resolution for their dispute.
This happened in 2016 when a contractor sued a fit-out company, both based in the UAE, in the SCT before realising at the Consultation that there was no DIFC Courts’ jurisdiction. Still, rather than waste time and money, the parties took advantage of the SCT’s mediation services to come to a fast and amicable settlement, just two weeks after the initial claim.