DIFC Court rejects indemnity costs plea despite finding disruptive litigation conduct

The Dubai International Financial Centre Court has declined to award indemnity costs to Qatar General Insurance & Reinsurance Company, despite acknowledging disruptive litigation behaviour by the defendant Emrgent Risk Solutions Limited.

Justice Sapna Jhangiani found that the defendant's conduct was "disorganised, often very last-minute, and in many instances highly disruptive to the proceedings." The judge noted multiple instances of problematic behaviour including late changes of position, witness withdrawals, last-minute notifications on contested issues and procedural applications.

However, the Court held that while the conduct was misguided and inconvenient, it did not amount to dishonesty, bad faith, abuse of process or other misconduct severe enough to warrant indemnity costs. The high threshold for such relief had not been met. The Court awarded the successful claimant its costs on the standard basis, with a payment on account of 65% of claimed costs, subject to detailed assessment if not agreed.