Businessman Loses Dh7b Lawsuit Against Property Company

Dubai’s highest court dismissed an Iranian businessman’s Dh7 billion commercial lawsuit that he had lodged against a property development company and the three shaikhs who own it.

The seven-year-old commercial dispute ended after the Dubai Cassation Court rejected the businessman’s Dh7 billion lawsuit that he had lodged against the three shaikhs and the company in 2009.

The Iranian argued in his lawsuit that he had made an agreement with one of the shaikhs [in his capacity as one of the owners] to establish the company in 2004 to obtain a licence to work and invest in a local industry.

He was assigned, according to the agreement, “as its manager and granted broad authority [similar to that of the owner] to be able to invest and manage his money which he invested in the company”.

The Iranian lodged his commercial lawsuit shortly after he was sacked from the company and failed to resolve the commercial dispute with the defendants.

Advocate Samir Jaafar, of Jaafar, Aalwan and Al Jazeri Legal Consultants, who defended the shaikhs and the company, contended before the Cassation Court that the claimant failed to prove that the funds that were invested in properties belonged to him, and argued that the money belonged to the firm.

“My clients are the ones who paid the company’s capital and the expenses of its establishment. The claimant failed to provide the court with documents and evidence corroborating his claims about the defendants being sponsors only. It was proved that my clients were the ones who paid for the company’s capital and that the invested properties were bought under the company’s activities,” Jaafar contended before the court.

The businessman’s lawyer told the court that his client was financially capable of investing in huge realty projects in and outside the UAE.

“As local laws stipulate that only Emiratis can invest and work in the real estate local market, my client agreed with one of the shaikhs to establish the company to obtain a licence to work in and invest in local industry. They established the company in 2004 and the claimant was assigned as its manager and granted broad authority,” he said.

Advocate Jaafar further lodged a counter-lawsuit in which he demanded the businessman repay Dh465 million he took while managing the company.

In 2012, the primary court dismissed the businessman’s lawsuit and the counter-lawsuit as well.

The litigating parties appealed the primary ruling that was upheld before the Dubai Appeal Court that dismissed the two appeals in 2015.

The litigants appealed the appellate judgement before the Cassation Court.

Advocate Jaafar argued in court that the businessman had inked a forged deal with an international company in 2005 and also provided the court with documents and financial reports contending that the claimant had committed financial irregularities.

The Cassation Court’s presiding judge Dr Ali Ebrahim dismissed the Dh7 billion lawsuit and the Dh465 million lawsuit.

source : gulfnews