In order to recover the Luna, which (by order the English High Court) Tatiana has the sole right of ownership, Tatiana has brought proceedings in Dubai, United Arab Emirates (UAE) (where the Vessel is presently situated, in Port Rashid). These proceedings seek recognition of the Financial Remedy Order and the 2018 Luna Declaration Order.
History of proceedings
Disputed jurisdiction: In October 2017, lawyers acting for Tatiana successfully executed their UK judgement in Dubai via the Dubai International Finance Centre (DIFC) courts, utilising the so-called ‘conduit jurisdiction’ exercise. The Luna became subject to an arrest issued by the DIFC. However, in July 2018, on appeal, the Joint Judicial Committee determined that the proper jurisdiction was the local Dubai courts.
Enforcement proceedings: Following this, Tatiana brought proceedings in the local Dubai courts. On 12 November 2018, the Dubai Court of First Instance issued a decision (1568/2018), declining to recognise the English orders and judgments on the basis that Tatiana had not shown that the judgments sought to be enforced had become final. This decision was upheld on appeal to the Dubai Court of Cassation (30 June 2019 in the Cassation Appeals Nos. 49/2019, 425/2019 and 320/2019 Commercial).
On 27 March 2019, the Dubai Court of Appeal reversed that decision and granted recognition of the Financial Remedy Order and the 2018 Luna Declaration Order – it concluded that it had sufficient evidence that the Enforcement Orders were final and therefore reversed the Court of First Instance decision. Accordingly, on 29 April 2019, the Dubai Court of First Instance granted recognition of the Financial Remedy Order and the 2018 Luna Declaration Order (sealing a copy of each order with an execution stamp).
On 5 February 2020, the Dubai Court of Appeal allowed Farkhad and Straight’s appeals against the enforcement (6/2019, 10/2019). This was on the basis that the “sharing principle” under English law, which was used to determine Tatiana’s entitlement in the divorce proceedings, is contrary to Shari’a Law, and it was therefore unenforceable under Dubai law. Tatiana filed an appeal against this judgment.
On 16 August 2020, the Dubai Court of Cassation rejected Tatiana’s appeal against the Dubai Court of Appeal’s judgment, finding that the matrimonial award (applying the “sharing principle” under English law) is contrary to Shari’a Law, and it was therefore unenforceable under Dubai law