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COMPANY’S LAWSUIT TURNED AGAINST ITSELF

The Abu Dhabi Federal Court of Appeal has upheld the verdict of a lower court, ordering a local company to pay a contractor Dh2 million towards executed works. The amount was outstanding dues payable to the contractor as per the contracts the firm had asked for termination.

The Al Amal Al Fawriya Company had filed a suit against the contractor Mohammed Hassan, asking him to terminate three contracts concluded with him. In its plea, the company requested the court to make it mandatory on Hassan to return the amount of Dh300,000, and maintain its right in demanding the necessary compensation as he (the contractor) had failed to execute the construction works agreed upon as per the contracts.

The contractor filed a counter lawsuit rejecting the company’s plea, and demanding it to pay him Dh3 million, being the remaining dues against the works he had carried out for the firm. The Abu Dhabi Federal Court of First Instance delegated an accounts expert, who submitted his report on the two lawsuits. Acting upon the report, the court ordered the company to pay Dh2million to the contractor, who was found to have executed most of the works agreed upon.

The company appealed against the verdict at the Abu Dhabi Federal Court of Appeal, which upheld the lower court’s verdict. The ruling was based on the report filed by the expert, who confirmed that the contractor had ceased completing the construction works of the company, but he had executed most of the works the two parties had agreed upon. This entitled him to get the rest of his dues from the company, the court said.