Liberty v (1) Lance Real Estate Broker (2) Lucian (3) Lilyana (4) Lucille (5) Lucca (6) Lacey (7) Lexi (8) Lawsan [2020] DIFC SCT 128 (18 June 2020)

Liberty v (1) Lance Real Estate Broker (2) Lucian (3) Lilyana (4) Lucille (5) Lucca (6) Lacey (7) Lexi (8) Lawsan [2020] DIFC SCT 128 (18 June 2020)

The Claimant is entitled to terminate the Second Agreement and claim restitution of the deposit because the Sellers' non-performance was due to circumstances beyond the parties' control (Covid-19 travel restrictions), the automatic extension period elapsed without resolution, and indefinite extension is unreasonable. The Claimant acted within her contractual and statutory rights.

Citation
[2020] DIFC SCT 128
Parties
Claimant: Liberty; First Defendant: Lance Real Estate Broker; Second Defendant: Lucian; Third Defendant: Lilyana; Fourth Defendant: Lucille; Fifth Defendant: Lucca; Sixth Defendant: Lacey; Seventh Defendant: Lexi; Eighth Defendant: Lawson
Jurisdiction
United Arab Emirates
Judgment Date
18 June 2020
Procedural Posture
Small Claims Tribunal / Judgment After Hearing
Outcome
Claim allowed in full for Claimant.
Legal Topics
Contract Termination, Restitution, Covid 19 Force Majeure, Real Estate Sale, Deposit Refund
Contract Law Property Law Contract Termination Restitution Covid 19 Force Majeure Real Estate Sale Deposit Refund

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Parties

Liberty

Claimant

Lance Real Estate Broker

First Defendant

Lucian

Second Defendant

Lilyana

Third Defendant

Lucille

Fourth Defendant

Lucca

Fifth Defendant

Lacey

Sixth Defendant

Lexi

Seventh Defendant

Lawson

Eighth Defendant

Procedural Posture

Small Claims Tribunal / Judgment After Hearing

Legal Issues

  1. 1 Whether the Claimant is entitled to terminate the Second Agreement for sale of property and claim refund of deposit due to non-performance caused by Covid-19 travel restrictions.
  2. 2 Whether any penalties or extensions apply under the contract for such termination.

Ratio Decidendi

The Claimant is entitled to terminate the Second Agreement and claim restitution of the deposit because the Sellers' non-performance was due to circumstances beyond the parties' control (Covid-19 travel restrictions), the automatic extension period elapsed without resolution, and indefinite extension is unreasonable. The Claimant acted within her contractual and statutory rights.

Court Disposition

Claim allowed in full for Claimant.

Orders

  • First Defendant to pay Claimant AED 142,000.
  • Defendants to pay Claimant USD 1,933.29 as court fee.