Heitor v Helah [2017] DIFC SCT 141 (01 August 2017)

Heitor v Helah [2017] DIFC SCT 141 (01 August 2017)

The Defendant’s failure to disclose the disclosure letter to the Claimant, in breach of his fiduciary duty of loyalty and confidence, constituted misrepresentation under Articles 29 and 30 of the DIFC Law of Obligations. This misrepresentation induced the Claimant to enter into the Settlement Agreement and make payments. The Settlement Agreement is terminated, and the Claimant is entitled to reimbursement of AED 204,422.28. The Defendant’s counterclaims for outstanding amounts, bonus, and penalties are dismissed as the Settlement Agreement is void due to misrepresentation.

Citation
[2017] DIFC SCT 141
Parties
Claimant/counter Defendant: Heitor; Defendant/counter Claimant: Helah
Jurisdiction
United Arab Emirates
Judgment Date
01 August 2017
Procedural Posture
Small Claim / Judgment After Hearing and Further Submissions
Outcome
Claim allowed in part; counterclaim dismissed except for visa transfer.
Legal Topics
Misrepresentation, Settlement Agreement, Breach of Fiduciary Duty, Bonus Entitlement, Visa Transfer, Damages, Employment Termination
Employment Law Contract Law Fiduciary Duties Misrepresentation Settlement Agreement Breach of Fiduciary Duty Bonus Entitlement Visa Transfer +2 more

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Parties

Heitor

Claimant/counter Defendant

Helah

Defendant/counter Claimant

Procedural Posture

Small Claim / Judgment After Hearing and Further Submissions

Legal Issues

  1. 1 Whether the Defendant's non-disclosure constituted misrepresentation under DIFC Law of Obligations
  2. 2 Whether the Defendant breached fiduciary duties to the Claimant
  3. 3 Whether the Settlement Agreement is voidable due to misrepresentation

Ratio Decidendi

The Defendant’s failure to disclose the disclosure letter to the Claimant, in breach of his fiduciary duty of loyalty and confidence, constituted misrepresentation under Articles 29 and 30 of the DIFC Law of Obligations. This misrepresentation induced the Claimant to enter into the Settlement Agreement and make payments. The Settlement Agreement is terminated, and the Claimant is entitled to reimbursement of AED 204,422.28. The Defendant’s counterclaims for outstanding amounts, bonus, and penalties are dismissed as the Settlement Agreement is void due to misrepresentation.

Court Disposition

Claim allowed in part; counterclaim dismissed except for visa transfer.

Orders

  • The Defendant shall reimburse the Claimant AED 204,422.28.
  • The Claimant shall transfer the Defendant’s visa with pending issues.