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Supreme Court quashes ruling in money dispute
ABU DHABI — The Supreme Federal Court has quashed a verdict issued by the Court of Appeal in a financial dispute between a company and a client.
The verdict was based on the premise that the appealed verdict did not take into consideration the client's request to have a contract with a company other than the one with which he had the dispute.
Court records showed that Kamedish Contracting Establishment filed a lawsuit against Badr A, a client, on the grounds that he had signed a contract with him to construct a house for him.
The contracting establishment accomplished about 70 per cent of the work, according to a consultant expert's report. But Badr failed to abide by the contractual obligations and only paid 50 per cent of the amount due for the works done. He refused to pay the rest of the dues, which meant that the project could not be completed.
Badr also filed a case against Kamedish company, demanding that it should continue the work as per the contract. He demanded the undoing of that part of the work which was not in line with the set specifications, besides the necessary repairs. He also claimed Dh1,000 for each day of delay as penalty, as the company only completed 40 per cent of the works.
The Court of First Instance assigned an expert to study the case; and on the basis of his report, it ruled that Badr should pay Dh331,371 to the establishment and allow it to continue the work.
Both parties appealed at the Court of Appeal, which also assigned an expert who submitted a fresh report to the court.
On the basis of the new report, the court ruled that Badr should pay Dh351,423 to the establishment and that it should continue the work in accordance with the specifications listed by the expert. Unhappy with the verdict, both parties took the case to the Supreme Federal Court.
Badr told the court that the Court of Appeal had ignored his request to assign the rest of the works to a different company in a tender to be organised by the court. The apex court agreed with Badr's request in line with article 129 of the civil procedures law.
Therefore, the apex court quashed the verdict of the Court of Appeal and referred the case back to it.
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