Dubai: Dh20.5-million lawsuit filed against real estate company dismissed by courts

The case revolved around the plaintiff's claim of financial mismanagement and failure to deposit funds into the project's escrow account

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A Staff Reporter

Published: Sun 1 Dec 2024, 6:00 AM

Last updated: Sun 1 Dec 2024, 9:40 AM

The Dubai Commercial Court has dismissed a Dh20.5-million lawsuit filed against a real estate development company for allegations of financial mismanagement.

A 52-year-old Emirati plaintiff lodged the case against the real estate development company and its expatriate manager, aged 46.

The case revolved around the plaintiff's claim of financial mismanagement and failure to deposit funds into the project's escrow account.

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The plaintiff alleged that he had paid Dh23.5 million toward purchasing units in a real estate project in Dubai’s Al Barsha area.

He accused the defendants of not depositing Dh20.5 million into the project’s escrow account, resulting in financial damages.

However, a court-appointed financial expert determined that the real estate company completed the project and that the plaintiff had resold most of the units for a profit, negating any claim of financial loss.

Dr Hassan Elhais, Legal Consultant with Awatif Shoqi Advocates & Legal Consultancy, which represented the real estate company, highlighted the ruling’s consideration of contractual obligations.

“This ruling underscores the importance of relying on contractual obligations and factual evidence when dealing with complex commercial disputes,” said Dr Elhais.

“The court found no wrongdoing on the part of our client, as the evidence demonstrated that the project was completed, and the plaintiff suffered no harm.”

The expert report also revealed that the plaintiff himself had defaulted on payments for several units, with checks bouncing due to insufficient funds.

Additionally, the plaintiff had entered into a settlement agreement in early 2023, during which he successfully sold most of the units in question.

“The court rightly concluded that our client fulfilled their obligations under the contract, completing the project as agreed,” added Dr Elhais.

The court’s ruling concluded that there was no breach of obligations by the defendants and ordered the plaintiff to cover all legal costs of the case.

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A Staff Reporter

Published: Sun 1 Dec 2024, 6:00 AM

Last updated: Sun 1 Dec 2024, 9:40 AM

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