Haya Spa LLC v Harper Real Estate / Hasan Real Estate [2016] DIFC SCT 150 (15 February 2017)

Haya Spa LLC v Harper Real Estate / Hasan Real Estate [2016] DIFC SCT 150 (15 February 2017)

The Defendants owed and breached a duty of care by providing incorrect information about the leased premises in the AutoCad drawing, which was reasonably relied upon by the Claimant for design and fit-out. This breach caused the Claimant to incur additional costs and losses until the error was discoverable upon receipt of the correct drawing from Body Corporate on 16 April 2015. Damages are awarded for losses directly attributable to the Defendants' negligence up to that date. Claims regarding delayed NOCs and lease amendments are dismissed for lack of merit or causation.

Citation
[2016] DIFC SCT 150
Parties
Claimant: Haya Spa LLC; Defendant: Harper Real Estate Development; Defendant: Hasan Real Estate
Jurisdiction
United Arab Emirates
Judgment Date
15 February 2017
Procedural Posture
Small Claims Tribunal (difc) Civil Claim / Final Judgment After Hearing and Submissions
Outcome
Partially allowed
Legal Topics
Negligence, Breach of Duty of Care, Lease Agreement Interpretation, Damages Assessment, Jurisdiction of DIFC Courts
Contract Law Tort Law Landlord and Tenant Law Negligence Breach of Duty of Care Lease Agreement Interpretation Damages Assessment Jurisdiction of DIFC Courts

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Parties

Haya Spa LLC

Claimant

Harper Real Estate Development

Defendant

Hasan Real Estate

Defendant

Procedural Posture

Small Claims Tribunal (difc) Civil Claim / Final Judgment After Hearing and Submissions

Legal Issues

  1. 1 Whether the Defendants are liable in negligence for providing incorrect information regarding the leased premises' floor plan
  2. 2 Whether the Defendants' delay in providing NOCs caused compensable loss
  3. 3 Whether the Claimant is entitled to damages for losses allegedly caused by the Defendants' conduct

Ratio Decidendi

The Defendants owed and breached a duty of care by providing incorrect information about the leased premises in the AutoCad drawing, which was reasonably relied upon by the Claimant for design and fit-out. This breach caused the Claimant to incur additional costs and losses until the error was discoverable upon receipt of the correct drawing from Body Corporate on 16 April 2015. Damages are awarded for losses directly attributable to the Defendants' negligence up to that date. Claims regarding delayed NOCs and lease amendments are dismissed for lack of merit or causation.

Court Disposition

Partially allowed

Orders

  • The Defendant shall pay the Claimant AED 194,400 as damages for negligence.
  • The Claimant’s claims regarding delayed NOCs, extended fit-out, and a new clause to the Lease Agreement are dismissed.