Tuesday, Apr 23, 2013

By Asa Fitch

DUBAI--Switzerland's UBS AG (UBS) has hired Charles Falconer, a high-profile U.K. lawyer, to defend the bank in a Dubai court case brought by a member of Kuwait's royal family, according to two people familiar with the matter.

Sheikh Meshal Jarah Al Sabah sued UBS last year, alleging he wasn't paid a promised fee of more than $20 million to help UBS earn an advisory role on one of the biggest-ever acquisitions in the Middle East, the $10.7 billion purchase in 2010 of the African telecommunications assets of Kuwait's Zain Telecom by India's Bharti Airtel Ltd.

A trial is due to start in June in the courts of the Dubai International Financial Centre.

The appointment of Lord Falconer, a former U.K. Lord Chancellor, suggests UBS plans to vigorously defend itself against the charges brought by Sheikh Meshal, said Mark Stephens, a partner at HowardKennedyFsi in London, who has represented clients in numerous high-profile human rights, media and intellectual property cases. Mr. Stephens is unconnected with the UBS litigation.

"He is a pretty fearsome lawyer and advocate," Mr. Stephens said. Lord Falconer's appointment suggests UBS's intention "is to fight this case seriously and hard."

Lord Falconer didn't respond to requests for comment, put to him via his London offices at Gibson, Dunn & Crutcher, where he is a partner.

Lord Falconer was a close friend of former U.K. Prime Minister Tony Blair and roomed with him when the two men were young lawyers in London in the late 1970s. He became U.K. solicitor general in 1997 after Mr. Blair became prime minister, before being appointed in 2003 to the position of Lord Chancellor, one of the most senior legal figures in the government. Lord Falconer remained in the government until Gordon Brown's election in 2007, after which he returned to his private legal career.

As UBS's barrister, Lord Falconer will make arguments on the bank's behalf at trial. UBS continues to retain the firm of Herbert Smith Freehills as its solicitors, according to one of the people familiar with the matter.

A DIFC courts spokesman confirmed that Herbert Smith were UBS's registered lawyers in the case, but said he couldn't comment on Lord Falconer's appointment.

Sheikh Meshal is represented by Lutfi & Co. Advocates and Legal Consultants, a local firm, and by U.K.-based Taylor Wessing, according to court records.

Write to Asa Fitch at Asa.Fitch@dowjones.com

(END) Dow Jones Newswires

23-04-13 1103GMT