Halston v Hazel (DIFC Branch) [2017] DIFC SCT 086 (18 May 2017)

Halston v Hazel (DIFC Branch) [2017] DIFC SCT 086 (18 May 2017)

The mistaken provision in the Compromise Agreement is void under Article 37 of the DIFC Contract Law because both parties were mistaken or the Claimant ought to have known of the mistake, and it would be contrary to reasonable commercial standards of fair dealing to enforce the mistaken provision. The Defendant was not grossly negligent or acting in bad faith, and the risk of mistake should not be assigned to the Defendant in these circumstances.

Citation
[2017] DIFC SCT 086
Parties
Claimant: Halston; Defendant: Hazel (DIFC Branch)
Jurisdiction
United Arab Emirates
Judgment Date
18 May 2017
Procedural Posture
Employment Dispute Small Claims Tribunal / Judgment After Hearing
Outcome
Claim dismissed
Legal Topics
Employment Termination, Compromise Agreement, Mistake in Contract, Pension Contributions
Employment Law Contract Law Employment Termination Compromise Agreement Mistake in Contract Pension Contributions

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Parties

Halston

Claimant

Hazel (DIFC Branch)

Defendant

Procedural Posture

Employment Dispute Small Claims Tribunal / Judgment After Hearing

Legal Issues

  1. 1 Whether the Defendant is liable to pay the Claimant the amount stated in the Compromise Agreement despite a mistake in calculation
  2. 2 Whether the mistaken provision in the Compromise Agreement can be voided under Article 37 of the DIFC Contract Law

Ratio Decidendi

The mistaken provision in the Compromise Agreement is void under Article 37 of the DIFC Contract Law because both parties were mistaken or the Claimant ought to have known of the mistake, and it would be contrary to reasonable commercial standards of fair dealing to enforce the mistaken provision. The Defendant was not grossly negligent or acting in bad faith, and the risk of mistake should not be assigned to the Defendant in these circumstances.

Court Disposition

Claim dismissed

Orders

  • The Claimant’s claim is dismissed in full.
  • There be no order as to costs or the Court fee.