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HAZRAT ALI v ARLOID REAL ESTATE DEVELOPMENT [2020] DIFC CFI 014 — Judicial Officer order permitting legal counsel to cease acting (16 March 2020)

The lawsuit concerns a real estate dispute between the Claimant, Hazrat Ali, and the Respondent, Arloid Real Estate Development FZ. The specific procedural matter at stake on 16 March 2020 was an application by the Claimant’s legal representatives, Global Advocacy and Legal Counsel, to cease acting…

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This order marks a procedural milestone in the ongoing litigation between Hazrat Ali and Arloid Real Estate Development FZ, formalizing the withdrawal of legal representation for the Claimant.

The lawsuit concerns a real estate dispute between the Claimant, Hazrat Ali, and the Respondent, Arloid Real Estate Development FZ. The specific procedural matter at stake on 16 March 2020 was an application by the Claimant’s legal representatives, Global Advocacy and Legal Counsel, to cease acting on behalf of their client. This application was necessitated by the firm's desire to formally terminate their professional relationship with the Claimant within the context of the ongoing DIFC Court proceedings.

The application was supported by evidence provided to the Court to justify the request to come off the record. As noted in the procedural history of this case:

"Global Advocacy and Legal Counsel has ceased to be the legal representative of the Claimant in the proceedings."

This development follows a series of earlier procedural steps in the same case, including: HAZRAT ALI v ARLOID REAL ESTATE DEVELOPMENT [2019] DIFC CFI 014 — Stay of proceedings pending Joint Judicial Committee determination (23 July 2019), HAZRAT ALI v ARLOID REAL ESTATE DEVELOPMENT FZ [2019] DIFC CFI 014 — Lifting of stay following Joint Judicial Committee determination (26 December 2019), and HAZRAT ALI v ARLOID REAL ESTATE DEVELOPMENT [2020] DIFC CFI 014 — Procedural amendment and evidence scheduling (07 January 2020).

The application was heard and determined by Judicial Officer Nassir Al Nasser within the DIFC Courts' Court of First Instance. The order was issued on 16 March 2020, following the review of the application notice submitted by the firm on 10 March 2020.

Global Advocacy and Legal Counsel sought to withdraw from the record by filing an application notice on 10 March 2020. While the specific internal reasons for the withdrawal remain confidential, the firm relied upon the procedural mechanisms provided under the Rules of the DIFC Courts (RDC) to facilitate their exit. To support their application, they submitted the First Witness Statement of Louise Wright, which provided the necessary evidentiary basis for the Court to satisfy itself that the withdrawal was appropriate under the circumstances.

The Court was tasked with determining whether the requirements set out in Part 37 of the RDC had been satisfied to permit a legal representative to cease acting for a party. The doctrinal issue centered on the Court's oversight of the solicitor-client relationship once litigation has commenced. The Judicial Officer had to ensure that the procedural requirements for notifying the Court and the client were met, thereby balancing the legal representative's right to terminate their retainer with the Court's interest in maintaining orderly proceedings and ensuring the Claimant was not left without representation without proper notice.

The Judicial Officer followed a structured review process to determine if the application met the threshold for granting the request. The process involved verifying the application notice filed on 10 March 2020 and assessing the supporting evidence provided in the First Witness Statement of Louise Wright. By reviewing these documents, the Court confirmed that the procedural steps required to "come off record" were fulfilled.

The reasoning was straightforward, focusing on the compliance with the RDC:

"Global Advocacy and Legal Counsel has ceased to be the legal representative of the Claimant in the proceedings."

The Court’s decision was based on the sufficiency of the documentation provided, ensuring that the transition of legal status was handled in accordance with the rules governing legal representation in the DIFC.

The primary authority applied in this matter was Part 37 of the Rules of the DIFC Courts. This section of the RDC provides the framework for a legal representative to change or cease their representation of a party in a case. It mandates that the representative must notify the Court and the other parties involved in the litigation to ensure that the record is updated and that the opposing party is aware of the change in the Claimant's status.

Part 37 of the RDC serves as the procedural safeguard for the integrity of the court record. It ensures that the Court is always aware of who is authorized to act on behalf of a litigant. In this case, the application of Part 37 allowed Global Advocacy and Legal Counsel to formally terminate their duties, thereby shifting the responsibility of representation back to the Claimant, Hazrat Ali, or necessitating the appointment of new counsel. The rule prevents a situation where a party is represented by a firm that no longer has instructions, thereby protecting the Respondent from procedural uncertainty.

What was the final disposition of the application filed on 10 March 2020?

The application was granted by Judicial Officer Nassir Al Nasser. The order, issued on 16 March 2020, explicitly stated that Global Advocacy and Legal Counsel had ceased to be the legal representative of the Claimant, Hazrat Ali, in the proceedings. No further costs or monetary relief were detailed in this specific procedural order, as the focus was strictly on the change of legal representation.

What are the practical takeaways for practitioners regarding the withdrawal of counsel under RDC Part 37?

Practitioners must ensure that any application to come off the record is supported by robust evidence, such as a witness statement, to satisfy the Court that the withdrawal is procedurally sound. The case highlights that even in complex real estate disputes, the Court maintains strict control over the legal representation of parties. Litigants should anticipate that once a firm comes off the record, the Court may require the party to either appoint new counsel or proceed as a litigant in person, which may impact the scheduling of future hearings or evidence submissions.

Where can I read the full judgment in Hazrat Ali v Arloid Real Estate Development FZ [2020] DIFC CFI 014?

The full order can be accessed via the DIFC Courts website: https://www.difccourts.ae/rules-decisions/judgments-orders/court-first-instance/cfi-0142019-hazrat-ali-v-arloid-real-estate-development-fz-llc-1 or via the CDN link: https://littdb.sfo2.cdn.digitaloceanspaces.com/litt/AE/DIFC/judgments/court-first-instance/DIFC_CFI-014-2019_20200316.txt.

Cases referred to in this judgment:

Case Citation How used
N/A N/A N/A

Legislation referenced:

  • Rules of the DIFC Courts (RDC), Part 37
Written by Sushant Shukla
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