City law firm sues prominent Emirati business family

London-headquartered law firm Charles Russell Speechlys has initiated legal action against investment entities controlled by the prominent Emirati business family Al-Sari, City AM can reveal, marking the latest development in an ongoing multi-jurisdictional dispute with its former client.

The case stems from overlapping legal challenges involving entities in the Al-Sari family’s portfolio. The law firm, regulated in England but with an office in Dubai, was originally instructed to represent Grand Valley General Trading, a corporate entity linked to the Al-Sari business group, in two arbitration proceedings in Singapore and related cases before the Dubai International Financial Centre (DIFC) Courts.

However, the firm soon became embroiled in a family dispute over control of its client after allegedly receiving conflicting instructions from two factions, one demanding documents and the other directing the firm to withhold them.

The dispute reached court in March 2023 at the DIFC in the UAE, where Justice Michael Black described it as “an unusual claim.” Other defendants included Mohammed Al-Sari, Mas Investment, Mohammad Mosa Abd Al-Arabiat, and Abdalla Juma Al-Sari.

According to the Dubai judgment, the defendants split into factions: three instructed Charles Russell Speechlys to hand over all legal case files and documents, while another directed the firm not to release them. Faced with conflicting instructions and bound by strict regulatory and ethical rules, the law firm asked the court to identify the true client and determine who was responsible for outstanding legal fees.

The judge recognised the “unenviable position” the law firm faced. He ordered Charles Russell Speechlys to refuse the three defendants’ request for case files and to withhold documents until the UAE civil and criminal cases regarding Grand Valley’s true ownership were resolved.

The judge also ruled that three of the defendants must pay the law firm’s legal costs for bringing the claim, amounting to AED 160,800 (£32,300).

However, the ruling noted that the defendants argued the matter should be handled separately by the courts in England. The judge drew a clear line between what the DIFC court can decide and what falls under the English court jurisdiction. Because the law firm practices as ‘DIFC practitioners’, the DIFC Court had the jurisdiction to order it to freeze the handover of the files.

London action against Al-Sari

On Friday, Charles Russell Speechlys filed a lawsuit in the London Circuit Commercial Court against Al Soor Investments LLC and Sari Investments LLC, according to filings seen by City AM. It is not yet clear what the claim is about, but it was launched in a specialist court for mid-tier commercial disputes.

In the Dubai judgment, Al Soor Investments LLC was directly mentioned as a source of confusion that forced the law firm to seek court intervention.

Charles Russell Speechlys declined to comment. Al Soor Investments was contacted for comment.

In a separate matter, the Al-Sari family were also at the heart of a multi-million-pound legal battle spanning Dubai, London, and the British Virgin Islands, with the Commercial Bank of Dubai seeking to recover over £80m in debt from members of the wealthy Emirati Al-Sari family.