July 24, 2025 court of first instance - Orders
Claim No. CFI 057/2024
IN THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE COURT OF FIRST INSTANCE
BETWEEN
SIG MIDDLE EAST LLC
Claimant
and
PERFECT BUILDING MATERIALS LLC
Defendant
ORDER WITH REASONS OF H.E. JUSTICE RENE LE MIERE
UPON the Part 8 Claim Form filed on 15 August 2024 (the “Claim”)
AND UPON the Order with Reasons of H.E. Justice Rene Le Miere dated 29 May 2025
AND UPON the Claimant’s costs submissions dated 25 June 2025
AND UPON the Defendant’s reply to the Claimant’s costs submissions dated 22 July 2025
IT IS HEREBY ORDERED THAT
1. The Defendant shall pay the Claimant’s costs assessed in the sum of AED 400,000.
Issued by:
Hayley Norton
Assistant Registrar
Date of Issue: 24 July 2025
At: 2pm
SCHEDULE OF REASONS
Summary
1. The Claimant initiated proceedings under Part 8 of the Rules of the DIFC Courts (“RDC”) to enforce a Final Settlement Agreement dated 20 April 2022, following prior breaches of contract by the Defendant.
2. The Defendant opposed the Claim, arguing that it involved significant factual disputes and should not proceed under Part 8.
3. The Claimant filed Application No. CFI-057-2024/1 on 15 January 2025 to exclude evidence submitted by the Defendant on 14 January 2025.
4. After a trial during which oral and documentary evidence were presented, the Court ordered as follows:
(a) The Claimant’s application to exclude the Defendant’s evidence (the "Application") was dismissed.
(b) Judgment was entered for the Claimant in the amount of AED 2,841,000.
(c) Each party is to bear its own costs in relation to the Application.
(d) The Defendant is to pay the Claimant’s costs of the Claim on the standard basis, to be assessed if not agreed, unless a party files a proposed order as to costs.
(e) The Court set out a procedure for filing and responding to proposed costs orders.
(f) If no proposed orders are filed within the prescribed period, the Defendant shall pay the Claimant’s costs of the Claim and the Application on the standard basis, to be assessed if not agreed.
5. For the reasons outlined below the Court will order that the Defendant pay the Claimant’s costs in the sum of AED 400,000.
Costs Submissions
6. On 12 June 2025, the Claimant filed a submission seeking a costs order for the amount of AED 544,066.34, supported by a Minute of Proposed Order, a Declaration of Legal Fees, and a Statement of Costs. The Claimant argues that the costs were reasonably and proportionately incurred in relation to legal drafting, procedural compliance, and client engagement. The legal team—comprising a Partner, Lawyer, Trainee, and Paralegal—contributed to the preparation and management of the Claim. The Claimant asserts that its conduct was fair and diligent, and that the claimed costs are supported by appropriate documentation.
7. The Defendant objects to the proposed order, arguing that the total amount claimed is excessive and unjustified given the procedural simplicity of the Part 8 Claim. The Defendant highlights the absence of contemporaneous time records and detailed invoices, and contends that the hours claimed are inflated due to duplication of work among fee earners. Specific objections are raised to the time claimed for drafting, service arrangements, hearing preparation and attendance, and post-hearing activities. The Defendant also challenges the recoverability of costs related to the unsuccessful application of 15 January 2025 and the hourly rates charged, which are said to exceed the indicative limits under Registrar’s Direction No. 1 of 2023. The Defendant requests that the Court disallow the claim in full or alternatively reduce the recoverable costs by no less than 40%, excluding costs related to the failed application.
Reasoning
8. The Court has considered both parties’ submissions.
9. The costs associated with the Application dated 15 January 2025 are not recoverable, as the Court previously ordered each party to bear their own costs in relation to that application. Those costs include:
(a) AED 31,654.38 plus VAT for “drafting application, exhibit, filing fee, service on defendant”.
(b) An unspecified amount on skeleton arguments, hearing bundle, and preparation for hearing.
(c) An unspecified amount for the Second Hearing.
(d) Court Fee of AED 1,121.75.
10. I will disallow AED 40,000 in relation to the Application.
11. The proceedings were conducted under Part 8 of the RDC and involved limited oral evidence and judicial management. While the Claimant undertook various procedural and legal tasks, the Court finds that the nature of the proceedings did not justify the full extent of the costs claimed.
12. The Court agrees with the Defendant's submission that some time entries seem excessive and that there was duplication of effort among fee earners. The total time spent on certain tasks—especially those related to procedural steps and hearing preparation—was excessive given the nature of the matter and the way it was presented at the Second Hearing.
13. I will apply a broad-brush approach and disallow approximately 20% of the time spent by the fee earners, excluding time spent on the Application, resulting in a reduction of approximately AED 100,000.
14. The Court notes that the hourly rates charged by the Claimant’s legal representatives do not exceed the indicative limits set out in Registrar’s Direction No. 1 of 2023. The Claimant’s Summary Assessment claims a higher rate was charged for the hearing, but this does not seem to be reflected in the costs claimed.
15. Applying the principles of reasonableness and proportionality, and considering the Court’s previous costs order, the Court finds a reduction of approximately AED 140,000 in the claimed amount appropriate.
Order
16. The Court therefore orders that the Defendant pay the Claimant’s costs of AED 400,000.
