Skip links

Defending a leading real estate giant: successfully protecting AED 20.3 million from contract termination claims.

Client Overview

This case involved a lawsuit filed by a plaintiff against our client, a prominent real estate development company in Dubai, alleging that the company had breached a contract for the sale of six hotel apartments.

The plaintiff sought to terminate the contracts on the grounds that the intended use of the apartments had been changed from hotel units to residential ones.

The total value of the disputed contracts amounted to AED 20,322,991.00, with the plaintiff demanding a full termination and restitution of the contract price.

Challenges

The main legal issue in this case revolved around the plaintiff’s claim to terminate the contracts due to the change in the apartments’ intended use.

The challenge for us as the defense team was to prove that the plaintiff had agreed to this change through their legal representative, thus removing any grounds for contract termination.

Additionally, the plaintiff’s lawyer contested the validity of the power of attorney, arguing that it did not authorize the agent to handle real estate transactions.

Solution

Our strategy focused on proving that the plaintiff’s legal representative had signed an agreement authorizing the change of use of the apartments from hotel to residential units. We submitted signed documents from the client’s legal consent, effectively eliminating the plaintiff’s legal foundation for the claim.

In response to the plaintiff’s challenge of the power of attorney, we argued that the document was a general power of attorney, which granted the agent full authority to deal with matters related to the management, sale, and purchase of real estate. This legal argument led to the rejection of the plaintiff’s objections.

Our defense was presented to the appointed expert and subsequently to the court. The court expert’s report supported our position. On 15th August 2023, after reviewing the case from all aspects, accepting our legal arguments and evidence, and finding in our favor, the court issued a verdict in favor of our client, dismissing the plaintiff’s claims and rejecting a financial refund exceeding AED 20 million, including legal and expert fees.

This case highlighted the importance of thorough documentation and strategic use of legal provisions in real estate disputes, ensuring a successful resolution for our client.

Leave a comment