Lakshmi v (1) Lavonna (2) Lavinia [2022] DIFC SCT 057 (19 April 2022)

Lakshmi v (1) Lavonna (2) Lavinia [2022] DIFC SCT 057 (19 April 2022)

The First Defendant breached the lease by failing to pay any rent. The Claimant is entitled to unpaid rent up to the date of handover, a 10% penalty on the outstanding rent, forfeiture of the security deposit as liquidated damages, and reimbursement of the court filing fee. The penalty for three months' rent does not apply as the unpaid rent exceeds that amount. The Second Defendant is responsible for utility and service charges until 30 July 2022.

Citation
[2022] DIFC SCT 057
Parties
Claimant: Lakshmi; First Defendant: Lavonna; Second Defendant: Lavinia
Jurisdiction
United Arab Emirates
Judgment Date
19 April 2022
Procedural Posture
Small Claims Tribunal (sct) Claim / Amended Judgment After Hearing and Failed Settlement
Outcome
Claim partly allowed against First Defendant; settlement recorded with Second Defendant.
Legal Topics
Lease Termination, Unpaid Rent, Liquidated Damages, Jurisdiction of DIFC Courts, Security Deposit Forfeiture
Landlord and Tenant Contract Law Civil Procedure Lease Termination Unpaid Rent Liquidated Damages Jurisdiction of DIFC Courts Security Deposit Forfeiture

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Parties

Lakshmi

Claimant

Lavonna

First Defendant

Lavinia

Second Defendant

Procedural Posture

Small Claims Tribunal (sct) Claim / Amended Judgment After Hearing and Failed Settlement

Legal Issues

  1. 1 Whether the First Defendant breached the lease agreement by failing to pay rent
  2. 2 Whether the Claimant is entitled to unpaid rent and penalties under the lease
  3. 3 Whether the security deposit should be forfeited to the Claimant

Ratio Decidendi

The First Defendant breached the lease by failing to pay any rent. The Claimant is entitled to unpaid rent up to the date of handover, a 10% penalty on the outstanding rent, forfeiture of the security deposit as liquidated damages, and reimbursement of the court filing fee. The penalty for three months' rent does not apply as the unpaid rent exceeds that amount. The Second Defendant is responsible for utility and service charges until 30 July 2022.

Court Disposition

Claim partly allowed against First Defendant; settlement recorded with Second Defendant.

Orders

  • First Defendant to pay Claimant AED 62,750 as unpaid rent.
  • First Defendant to pay Claimant AED 6,275 as penalty (10% of unpaid rent).