USA Judge Throws Out Lawsuits

Just days after a similar judgement in the Cayman Islands (see our previous post), New York's Supreme Court has dealt a further blow to AHAB in its dispute against Maan Al-Sanea, with the judge "throwing out" several lawsuits relating to it.

As The National newspapers reports, "Justice Richard B Lowe III of the New York Supreme Court ruled that an action brought by the UAE's Mashreqbank should be heard in the Emirates, where parallel action is already taking place, and not in New York. He also said Saudi Arabia could be the appropriate place for other parts of the allegations to be tested."

And as The Wall Street Journal reports, "The U.A.E. (United Arab Emirates) is the more appropriate forum for determination of the primary actions, and they will be decided in the case that Mashreqbank has already commenced there," the judge said. "Ahab can decide whether it prefers to bring its third-party action in the U.A.E. as well, or to seek redress in Saudia Arabia." Part of Justice Lowe's ruling was based upon the fact that many witnesses were not residing in New York and that it would be more convenient for them to appear in a Middle Eastern court.

In response to the judgement, AHAB's lawyer, Eric Lewis, made the point that his clients had not chosen to litigate in the USA, but rather that decision was taken by Mashreqbank, when it decided to sue Mr Lewis's clients. The National goes on to report that "Mr Lewis stated that AHAB believes the decision is wrong as a matter of both law and policy and that it is considering its options."

According to the WSJ, Robert Serio - a lawyer for Mr Al-Sanea, said: "We are pleased with the court's ruling and, in particular, with its recognition that the Kingdom of Saudi Arabia is the better forum for the resolution of the parties' differences."

Mashreqbank said in a statement that its claims "remain indisputable and we will continue to aggressively pursue those claims in the U.A.E. courts."

So, this lengthy American chapter of events appears to have drawn to a close (although Mr Lewis did say his clients would consider an appeal). Questions will now be asked not only as to what happens next - in Saudi Arabia - but also how quickly a resolution to this dispute can be found, especially as the argument over jurisdiction has already taken some time.

Taif Info Center will be summarising Justice Lowe's judgement in the coming days, with a story appearing in our Legalities page.

Meanwhile, the original National report can be read here, while the Wall Street Journal can be read here.