Lerdan Rental Llc v Linana Engineering Llc [2020] DIFC SCT 330 (01 November 2020)

Lerdan Rental Llc v Linana Engineering Llc [2020] DIFC SCT 330 (01 November 2020)

The Defendant is liable for payment as the agreement did not contain a force majeure clause relieving obligations, and the Defendant failed to follow the contractual procedure for off-hiring the equipment.

Citation
[2020] DIFC SCT 330
Parties
Claimant: Lerdan Rental LLC; Defendant: Linana Engineering LLC
Jurisdiction
United Arab Emirates
Judgment Date
01 November 2020
Procedural Posture
Small Claims Tribunal / Judgment After Hearing
Outcome
Claim allowed
Legal Topics
Rental Agreements, Force Majeure, Non Payment of Invoices
Contract Law Commercial Law Rental Agreements Force Majeure Non Payment of Invoices

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Parties

Lerdan Rental LLC

Claimant

Linana Engineering LLC

Defendant

Procedural Posture

Small Claims Tribunal / Judgment After Hearing

Legal Issues

  1. 1 Whether the Defendant is liable for payment under the rental agreement despite COVID-19 related disruptions
  2. 2 Whether force majeure provisions in the agreement relieve the Defendant of payment obligations
  3. 3 Whether the Defendant complied with off-hire procedures under the agreement

Ratio Decidendi

The Defendant is liable for payment as the agreement did not contain a force majeure clause relieving obligations, and the Defendant failed to follow the contractual procedure for off-hiring the equipment.

Court Disposition

Claim allowed

Orders

  • The Defendant shall pay the Claimant AED 62,834.10.
  • The Defendant shall pay the Claimant the Court fees in the sum of AED 3,141.70.