Martin Khoshdel MCIArb successfully appeared for the Respondent in The Collection Club Restaurant Limited and others v MAG Development Services Limited [2026] DIFC CA 006

Martin Khoshdel MCIArb successfully appeared for the Respondent in The Collection Club Restaurant Limited and others v MAG Development Services Limited [2026] DIFC CA 006, which is the only appellate authority dealing with the availability of statutory force majeure pursuant to Article 82 of the DIFC Contract Law in circumstances where an obligation to pay was breached.

The Court of Appeal considered the situation where the parties had not included a force majeure clause within their lease agreement and thus the defaulting party sought to invoke statutory force majeure. Martin submitted that force majeure as a defence was not available to the Appellants because of the opening words of Article 82(1) of the DIFC Contract Law.

The Court of Appeal accepted that force majeure would not be available to a defaulting party where the obligation was a simple obligation to pay, and not one connected to or linked to another obligation. The case is of application to all contracts which are governed by DIFC law and where such contracts do not contain a force majeure clause. Given the regional developments and closing of the strait of Homouz, this decision will of wider significance for all advising on contracts governed by a DIFC law which do not contain a force majeure clause.

Martin was instructed by Gerard Moore and Alanood Sinjab of Mayer Brown.

Martin is a commercial disputes barrister covering litigation in the courts of England & Wales, DIFC, ADGM, QFC, AIFC, and BICC, and appearing in arbitrations.

A link to the judgement can be found here: https://lnkd.in/dkFb7CDe