The United Arab Emirates is a global investment hub, attracting significant capital from diverse sectors and international stakeholders. Dubai's real estate market, a major component of this economic landscape, is recognized for its scale and dynamism. However, the complexities of this thriving market can sometimes lead to disputes between developers and buyers, potentially resulting in legal recourse.
In this case, we present the key events where the buyer (plaintiff in the original lawsuit) approached the "Al Safar & Partners Law Firm" to file a legal claim against the other party in the contract (defendant). This action was taken due to the buyer's confidence in our expertise and knowledge of the legal matters that our office is known for, as well as our complete commitment to protecting the rights of our clients.
Background of the Legal Dispute:
According to the agreement of sale and purchase, the plaintiff (our client – S.E ) bought a real estate unit from the first defendant (the seller – D... Company) intending to use it as a hotel apartment, for a price of AED 5,480,000. The plaintiff fulfilled all contractual obligations, paid the full price, and the registration fees, totaling AED 2,857,100. However, he was surprised by a significant change in the unit's classification, which had been approved for hotel usage in the agreement but was later changed to residential. Additionally, there were delays in the completion and defects in the unit's construction. Consequently, the first defendant (the seller – D... Company) failed to fulfill its contractual obligations, causing our client material and moral damages that warrant compensation. As the responsibility is shared among all parties involved in the joint project, and as payment receipts bear the signatures of the second and third defendants, who had jointly signed the amendment to the joint venture agreement related to the management and rental of the unit in exchange for a 10% annual return, the plaintiff requested them to adhere to the contracted specifications, but to no avail, leading him to initiate this legal claim.
Our Requests:
To rule in favor of our client, firstly by terminating the sale and purchase agreement and obliging the defendants to jointly and severally reimburse the amount paid by the plaintiff (our client – S.E), totaling AED 555,285.71, along with legal interest at 13% from the date of the claim until full payment.
Secondly, to obligate the defendants, jointly and severally, to pay our client AED 3,500,000 as compensation for the material and moral damages he incurred, and to hold them liable for all fees and expenses.
First Instance Court's Judgment:
The first defendant's representative filed a defense memorandum seeking the rejection of the claim based on the arbitration clause, which was dismissed as a precaution. The Court appointed a committee of experts in hotel apartments who presented a report with several conclusions.
The First Instance Court Issued The Following Judgment:
Terminating the sale and purchase agreement between the plaintiff (our client – S.E ) and the first defendant (the seller – D... Company) regarding the specified property, and obliging the defendants, jointly and severally, to pay the plaintiff AED 571,555.28, along with legal interest at 5% per annum from the date of the claim until full payment.
Obliging the defendants, jointly and severally, to pay the plaintiff an additional AED 1,000,000 in compensation and to cover the fees and expenses of the legal proceedings.
Appeal Court's Judgment:
The first defendant (the seller – D… Company) did not accept the final Judgment and filed an Appeal, seeking its annulment, and demanded that the plaintiff's Appeal be rejected. After considering both parties' arguments and defenses, the Appeal Court ruled as follows:
Accepting the Appeal formally but rejecting its substance, affirming the final Judgment, and ordering the appellant to cover their expenses and attorney's fees. The Appeal Court also ordered the seizure of the insurance amount.
Conclusion
In conclusion, Al Safar & Partner Law Firm demonstrated an unwavering commitment to securing this remarkable outcome in favor of our esteemed client, as validated by the Dubai Appeal Court's affirmation of the initial Judgment while dismissing the Appeal. This verdict stands as a testament to the equitable and principled nature of the Judicial System in the UAE.
For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com - www.alsafarpartners.com