Arabtec Construction LLC v Ultra Fuji International LLC [2007] DIFC CFI 004 (11 February 2009)

Arabtec Construction LLC v Ultra Fuji International LLC [2007] DIFC CFI 004 (11 February 2009)

Arabtec was entitled to terminate the Sub-Contract due to Ultra Fuji's fundamental non-performance, including repeated delays, defective works, and failure to comply with safety and programme requirements. The contractual and statutory grounds for termination were both available and complementary. Arabtec is entitled to liquidated damages capped at 10% of the Sub-Contract price and refund of overpayments for unperformed works. Ultra Fuji's counterclaims for further payment and damages for equipment left on site are rejected.

Citation
[2007] DIFC CFI 004
Parties
Claimant/part 20 Defendant: Arabtec Construction LLC; Defendant/part 20 Claimant: Ultra Fuji International LLC
Jurisdiction
United Arab Emirates
Judgment Date
11 February 2009
Procedural Posture
Civil Construction Dispute / Judgment After Trial
Outcome
Judgment for Arabtec Construction LLC
Legal Topics
Termination of Contract, Liquidated Damages, Non Performance, Subcontractor Obligations, Payment Disputes
Construction Law Contract Law Termination of Contract Liquidated Damages Non Performance Subcontractor Obligations Payment Disputes

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 3 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Arabtec Construction LLC

Claimant/part 20 Defendant

Ultra Fuji International LLC

Defendant/part 20 Claimant

Procedural Posture

Civil Construction Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether Arabtec was entitled to terminate the Sub-Contract with Ultra Fuji
  2. 2 Whether Ultra Fuji was entitled to further payment under the Sub-Contract
  3. 3 Whether Arabtec is entitled to liquidated damages and refund of payments for unperformed works

Ratio Decidendi

Arabtec was entitled to terminate the Sub-Contract due to Ultra Fuji's fundamental non-performance, including repeated delays, defective works, and failure to comply with safety and programme requirements. The contractual and statutory grounds for termination were both available and complementary. Arabtec is entitled to liquidated damages capped at 10% of the Sub-Contract price and refund of overpayments for unperformed works. Ultra Fuji's counterclaims for further payment and damages for equipment left on site are rejected.

Court Disposition

Judgment for Arabtec Construction LLC

Orders

  • Ultra Fuji to pay Arabtec AED 2,442,924.78 as refund for unperformed works
  • Ultra Fuji to pay Arabtec AED 883,260 as liquidated damages