Al Ahmar v Radwan [2024] ADGMCFI 0011 (29 July 2024)

Al Ahmar v Radwan [2024] ADGMCFI 0011 (29 July 2024)

Mesab Limited breached the SPA by failing to deliver the Unit within the extended contractual and force majeure periods; Covid pandemic constituted a delay event but not sole cause; Claimants entitled to compensation for loss of rental opportunity, increased bank interest, loss of investment earnings, and moral damages; exemption clauses and disclaimer do not bar claims for delay or defects; monetary claims succeed in part; Mesab's counterclaim for connection fees partially succeeds; rectification of defects ordered.

Citation
[2024] ADGMCFI 0011
Parties
First Claimant: Sohir Hussein Al Ahmar; Second Claimant: Radwan Anas Radwan; First Defendant: Mesab Limited; Second Defendant: Mesab Limited (Local Branch Company)
Jurisdiction
United Arab Emirates
Judgment Date
29 July 2024
Procedural Posture
Commercial and Civil / Final Judgment After Trial
Outcome
Claimants' claims partially allowed; Defendants' counterclaim partially allowed; net balance awarded to Claimants.
Legal Topics
Breach of Contract, Damages for Delay, Force Majeure, Construction Defects, Compensation, Jurisdiction

Case Brief

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Parties

Sohir Hussein Al Ahmar

First Claimant

Radwan Anas Radwan

Second Claimant

Mesab Limited

First Defendant

Mesab Limited (Local Branch Company)

Second Defendant

Procedural Posture

Commercial and Civil / Final Judgment After Trial

  1. 1 Whether Mesab Limited breached the Sale and Purchase Agreement by delayed delivery of the Unit
  2. 2 Whether force majeure (Covid pandemic) excuses delay
  3. 3 Entitlement to damages for delay, defects, and moral harm

Ratio Decidendi

Mesab Limited breached the SPA by failing to deliver the Unit within the extended contractual and force majeure periods; Covid pandemic constituted a delay event but not sole cause; Claimants entitled to compensation for loss of rental opportunity, increased bank interest, loss of investment earnings, and moral damages; exemption clauses and disclaimer do not bar claims for delay or defects; monetary claims succeed in part; Mesab's counterclaim for connection fees partially succeeds; rectification of defects ordered.

Court Disposition

Claimants' claims partially allowed; Defendants' counterclaim partially allowed; net balance awarded to Claimants.

Orders

  • Judgment for Claimants in sum of AED 346,800 for contractual damages.
  • Judgment for Defendants in sum of AED 50,498 for counterclaim.