June 16, 2026 court of first instance - Orders
Claim No: CFI 097/2024
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE COURT OF FIRST INSTANCE
BETWEEN
BRAND LOUNGE FZ LLC
Claimant
and
MOHAMED HILAL GROUP
Defendant
ORDER WITH REASONS OF H.E. JUSTICE SHAMLAN AL SAWALEHI
UPON the Claimant’s Part 7 Claim Form dated 20 December 2024 (the “Claim”)
AND UPON the Trial before H.E. Justice Shamlan Al Sawalehi on 5 May 2026 to 6 May 2026 (the “Trial”)
AND UPON the Judgment of H.E. Justice Shamlan Al Sawalehi issued on 16 June 2026 granting the Claimant the value of the unpaid invoices (the “Judgment”)
AND UPON paragraph 4 of the Judgment awarding costs in favour of the Claimant on the standard basis to be assessed by the Court
AND UPON the individual Statement of Costs for the Trial filed by the Claimant and the Defendant on 4 and 5 May 2026 respectively
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant 60% of its sought Costs, being a total of AED 355,655.334 (the “Costs Award”).
2. The Defendant shall pay the Costs Award within 14 days of the date of this Order, pursuant to RDC 38.40.
3. In the event that the Defendant fails to pay the Costs Award within 14 days of the date of this Order, interest shall accrue at the rate of 9% per annum from the date of this Order
Issued by:
Delvin Sumo
Assistant Registrar
Date of issue: 16 June 2026
Time: 11am
SCHEDULE OF REASONS
1. This Order concerns the costs of the Claim.
2. Pursuant to paragraph 4 of the Judgment, the Defendant was directed to pay the Claimant’s costs of the Claim, to be assessed on the standard basis by the Court on the parties’ filed Statement of Costs.
3. The Claimant filed its Statement of Costs on 4 May 2026, with a grand total calculated at AED 592,758.89. This was inclusive of a Fixed Fee Engagement with Hamdan Al Shamsi Lawyer & Legal Consultants, 5% VAT on legal fees and disbursements, and the DIFC Courts’ filing fee, as well as the standard hourly rates ranging from AED 1,200 to AED 2,600 for a 9-person legal team. The Claimant further submitted that the hourly rates were at a discounted fee from October 2025 to December 2025, which is reflected in the fee earner list.
4. The Defendant filed its Statement of Costs on 5 May 2026, with a grand total calculated at AED 417,413.51. It is submitted on the statement that the firm was engaged for advice and attendance on this matter for a fixed fee of AED 150,000, a further fixed fee of AED 70,000 to apply to set aside the Default Judgment of Judge Maith AlShehhi dated 20 February 2025, and fixed barrister fees of AED 25,000. The Defendant engaged a 7-person legal team, with no paralegals,
5. In assessing those costs, the Court has had regard to RDC 38.7, 38.8 and 38.23, and to the requirement that costs allowed on the standard basis be both reasonable and proportionate.
6. While the Claimant was the successful party in the Claim, the Court considers it appropriate, in the exercise of its discretion, to allow recovery of 60% of the total costs claimed, particularly when considering that the Claimant was not successful in the entirety of its Claim and the AED 175,345.38 difference in costs without substantial justification.
7. This reflects:
(a) the need to ensure proportionality in light of the nature and scope of the proceedings;
(b) the fact that there were limited applications to be dealt with, and the Trial lasted only one day; and
(c) the requirement that only costs reasonably incurred be recoverable on the standard basis.
8. The Defendant shall therefore pay the Claimant the sum of AED 355,655.334, as set out in the Order above.
