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JASON HUF INTERNATIONAL, pc

"Exploring the Boundaries
 
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New York, New York
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JEDDAH

Khalil Khazindar Law Firm
in Association with
JASON HUF INTERNATIONAL pc
Ammar Commercial Center

Al Murjan Street (off of King Abdul Aziz Street), Office # 202
P.O. Box 157,  Jeddah  21411
Kingdom of Saudi Arabia
+966 (2) 4204763 (p)
+966 (2) 4204729 (f)
www.khazindarlaw.com
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  • Qatar's International Commercial Court

    As Co-Chairman of the New York County Lawyers' Association's (NYCLA) Foreign & International Law Committee, Mr. Huf enjoys the occassional pleasure of hosting some rather interesting guests.

    Just this past March, the Foreign & International Law Committee welcomed the Honorable Gerald Lebovits, Justice of the New York Supreme Court in Manhattan and Adjunct Professor of Law at Columbia, Fordham and NYU.  Justice Lebovits provided a presentation covering the Qatar International Court and the time he spent in Doha teaching local attorneys there.

    JHI has briefly covered Qatar's Bifurcated Legal System in an earlier piece and we refer you to it for some of the bare bones basics.

    Justice Lebovits, in addition to describing his teaching experience in Doha, discussed the history of Qatar's International Court (the Court) for hearing commercial disputes, the caliber of its personnel, its procedures and costs.  He also discussed some of the decisions already rendered by the Court, where he participated as one of its distinguished Judges.

    Clara Flebus, Gerald Lebovits, Jason Huf
    (Left to right: Clara Flebus, Co-Chair, NYCLA Foreign & International Law Committee; Hon. Justice Gerald Lebovits; and, Jason Huf)

    Justice Lebovits pointed out, at length, what he viewed to be the efficiency of the Court relative to Arbitration facilities elsewhere in the Gulf region. The speed, cost and fairness of the proceedings made the Court, from his perspective, an ideal solution for Dispute Resolution and wondered aloud why parties did not avail themselves of the use of the Court more often in the dispute resolution clauses of their agreements.

    Mr. Huf agrees that, on paper and based on performance thus far, the Court is an attractive facility. However, the Court was founded relatively recently (2009), and as an active international practitioner who focuses on the region, Mr. Huf made the point that attorneys might be more receptive to the idea of recommending the use of the Court to their clients after more data is at hand (that is to say, after the Court has adjudicated more disputes). Of course, with attorneys perhaps hesitating to suggest that their client be something of a new legal system's "guinea pig", it may take some time before such additional data is generated.

    That said, you would be hard-pressed to find a lawyer in New York City who is as knowledgeable of the inner workings of the Court and the procedures it employs than Justice Lebovits.  His entire presentation – including his positive view of the Court's cost and time-effectiveness – was well-informed and compelling.

    JHI invites you to research the Qatar International Commercial Court and Dispute Resolution Centre and draw your own conclusions:

    www.qicdrc.com.qa


    After all, as very good lawyers, aren't we always in search of the next "better idea"?

  • Arbitration Clauses in Multi-National Agreements

    Arbitration clauses are often heavily negotiated and complex enough to be referred to as “a contract within the contract”.  The reasons for this are obvious (even to us transactional practitioners).  The exact terms of a dispute resolution clause can have far-reaching consequences.

    One of the goals in crafting such a clause is to mitigate the irreconcilability of disputes as they arise by putting your client in the best possible position in the event of a scenario that triggers termination and subsequent arbitration.  Naturally, both sides have this in mind during negotiations.  But, what happens in jurisdictions where the enforceability of arbitration clauses may be considered by some, fairly or unfairly, to be a somewhat unsettled question?

    Until recently, while the Kingdom of Saudi Arabia (or, KSA) has been a member to the New York Convention (on the enforcement of arbitral awards), this did not always lead one to predict with certainty that a Saudi court would recognize the validity of the arbitration clause in your agreement with a local party and direct that party to resort to arbitration, as per your agreement.  In the past, senior judicial officials and other legal professionals in Saudi Arabia have on occasion issued public pronouncements that arbitration clauses are contrary to Shari’ah and are therefore invalid, and should not be enforced by Saudi courts.

    That is to say, in Saudi Arabia you may have had the right to enforce an arbitral award granted by a tribunal (keeping in mind the difficulty some may experience in attempting actual collection in the Kingdom), but such public pronouncements may have lead some to wonder if you could successfully assert that the underlying dispute be entered into arbitration in the first place (in the KSA), depending on whether or not the judge in the Saudi court deciding the question deemed your particular arbitration clause (or, arbitration clauses generally) to be appropriate under, or contrary to, Shari'ah.

    Today, some are hopeful that the passage of the KSA's new Arbitration Law of 2012 (
    based on the UNCITRAL Model Arbitration Law) to supplant the KSA Arbitration Law of 1983, and the creation of judicial training centers and the subsequent appointment of judges to serve in a new commercial court system in the KSA, will lead to greater clarity on the subject of the enforcement of arbitration clauses.  As with any legal reform, time will tell.

    In the neighboring United Arab Emirates (UAE), the considerations differ.  The validity of the arbitration clause, the formation of the contact, and the nature of the relationship between the parties themselves are just a few of the considerations that a court could measure in weighing the enforceability of a given arbitration clause.

    Any Emirati national (individual or corporate) has the right to avail itself of the protection and justice of the courts of the UAE.  In the past, this may have prompted some local parties in the UAE to move that a local court should assert jurisdiction, despite the existence of an arbitration clause.  It should be said, however, that in the UAE (a commercial hub in the Gulf region that has become famous for the "City of Dreams", Dubai, and increasingly the "Green Emirate" of Abu Dhabi), such motions should rely on more than this basic right if a party wishes to succeed in its attempt to escape arbitration under a valid clause.

    Following certain provisions of the UAE (federal) Civil Code, judges in local courts should hold that validly written arbitration clauses are enforceable, except when there exist particular circumstances.  For example, in disputes arising from registered commercial agency agreements a judge may deem an otherwise valid arbitration clause unenforceable and declare it void on the grounds that clauses calling for alternative dispute resolution (or, ADR) in such contracts are contrary to, or inconsistent with, "Public Policy".  (Please note: the commonly used, colloquial term "sponsorship agreement" is much broader and could refer to several different types of business relationships in the UAE; whereas, "registered commercial agency agreements" refers to a specific type of business relationship, which must also be properly registered with the relevant government office in accordance with both the law and the terms stipulated in the agreement itself.)

    So, what do you do when doing business internationally, and some of your relationships are with parties in the Middle East?

    Negotiate an arbitration clause.

    And, retain an experienced attorney with local knowledge (preferably one with a presence in the specific jurisdiction in question: the laws of Middle Eastern jurisdictions, like the laws of countries in other regions of the world, are subject to change).

    If the local party with which your company is doing business has attachable assets outside of the Middle East in a country where collections may be deemed less frustrating, that can be a plus.  But, as with just about everything else, there is no substitute for experience -- and solid, relevant legal experience may be one of your best assets at the negotiating table.

  • There's More to Doha than Soccer

    Stories concerning the 2022 World Cup tournament seem to have taken all the oxygen out of news and information about Qatar.  True, Doha is scheduled to be the first Arab state to host the world's largest soccer tournament, and this promises to generate something of an increase to the country's construction boom.  But, there's more to this small, wealthy Gulf state than sports.

    Businesses, whether they be engineering firms, banks, energy companies, franchisors, purveyors of luxury items or manufacturers of fast-moving consumer goods, might be interested to know that Qatar is the world's third largest producer of natural gas and has a legal and regulatory enviroment wherein compliance is relatively inexpensive.  With the highest GDP per capita in the world, Qatar's consumer base is awash in disposable wealth and opportunities abound.

    As a law firm, JHI takes particular notice of Qatar's bifurcated legal system.  The civil courts there are completely separate from and independent of the Shari'ah courts, and the rest of the government generally.  These separate courts that deal with matters relating to foreign commercial interests provide a level of transparancy and predictability for which Gulf-Arab jurisdictions, fairly or unfairly, do not always have a reputation.  This, in turn, provides an additional layer of security to companies that expand into, or otherwise invest in, Qatar.

    Conduct your own economic survey and have accounting crunch the numbers and provide you with the tax implications of such a venture.  Then, if satisfied (or, excited), contact an experienced law firm and ask them to provide you with a legal and regulatory survey.

    Take a look at Doha beyond the glamour of sports and see if you would like to Explore the Boundaries of Your Business.