7StarsDubai

Dubai UAE News from the Press Property Market Disaster and More

  • Dubai 7 Stars
  • March 2019
    M T W T F S S
    « Dec    
     123
    45678910
    11121314151617
    18192021222324
    25262728293031
  • Middle East Unrest Update

  • Talk of the Town

    Jo Hopworth on Justice For Natalie – Na…
    Mariam on Criminal Complaint filed in Ge…
    Martin Kraeter on ACI Dubai Funds filed bankrupt…
    Independent Observer on Iranian’s lawsuit reveals roya…
    Rado on DubaiTouristen landen schnell…
    Dubai Citizen on Al Fajer Properties Case…
    Dane on Outlook in concrete- Dubai Wor…
    jamesl fayad on RERA Dubai – Dubai Prope…
    Jacques on Malika Karoum finally arrested…
    James Brown on ACI – Alternative Capita…
    Journalist on Al Fajer Properties-500 Invest…
    ron oakeley on ACI – Alternative Capita…
    Benson Fu on Shahram Zadeh against Al Fajer…
    Monika on RERA – Dubai mulls cance…
    Ali Varahram on Shahram Zadeh against Al Fajer…
  • Top Rated Comments

  • Top Posts

  • RSS Dubai United Arab Emirates Property Real Estate Debt Fraud Developer Investor Court News

    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
  • Top Rated Posts

    • 481,570 visitors 2010
  • Disclaimer 7 Stars Dubai

    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Web site. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Comment Rules: Although the administrators and moderators of 7starsdubai.com will attempt to keep all objectionable comments off this Blog, it is impossible for us to review all comments . All messages express the views of the author, and neither the owners of this Blog, nor the administrator of this Blog will be held responsible for the content of any message, comment. By agreeing to these rules, you warrant that you will not post any messages that are obscene, vulgar, hateful, threatening, or otherwise violative of any laws. The adminstrator of this Blog reserve the right to remove, edit, move or close any comment (message) for any reason This Blog content still existing media releases and comments from websites only. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of this site does not constitute advice or a recommendation by us.Communications and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this Blog. We can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on this Web site nor do opinions of contributors necessarily reflect those of us.In no event shall we be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to this Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise. Copyright: The copyright to the text of the blog is held by the author or link as source provided, where applicable. All images displayed are copyright their respective owners and are used either under licence or under the fair use provisions of international copyright law. The information contained in this Web site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult the administrator of this website. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, 7starsdubai.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will 7starsdubai its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this site or for any consequential, special or similar damages, even if advised of the possibility of such damages. Certain links in the Web site connect to other sites maintained by third parties that may or may not be presented within a frame on the Web site. 7starsdubai.com has not verified the contents of such third party sites and does not endorse, warrant, promote or recommend any services or products, that may be provided or accessed through them or any person or body which may provide them. 7starsdubai.com has not issued or caused to be issued any advertisements which may appear on these Web sites. We do not review, monitor or endorse any third party web sites linked to Our Site and We are not responsible for the content of any web site linked to Our Site. Your access to any web site that links to Our Site is at your sole risk. We are not responsible for the information, material, products, or services contained on or accessible through such other web sites and will not be liable for any form of loss or damage arising as a result of or in connection with your visits to such web sites. Any links to other web sites are provided merely for the convenience of the users of this Site and the inclusion of these links does not imply an endorsement of the linked web sites or the content therein. In addition, you agree not to link your web site or any other third party web site to Our Site or frame Our Site as part of any other web site without Our express prior written consent. We reserve the right, at any time and for any reason not prohibited by law, to deny permission to anyone to link a web site to, or frame, Our Site. We reserve the right to withdraw Our consent at any time to a link to, or framing of, Our Site at Our sole discretion without notice. Your use of this Site and the operation of these Terms and Conditions shall be governed by and construed in accordance with the laws and regulations of and applicable in Germany You agree, acknowledge, and submit to the Court in Germany having non-exclusive jurisdiction over all and any dispute or difference between us arising out of or in connection with this Agreement. Please review these Terms and Conditions carefully before using this Site. Your use of this Site indicates your irrevocable agreement to be bound by these Terms and Conditions (as may be amended by Us from time to time). If you do not agree to be bound by these Terms and Conditions please stop accessing and using this Site immediately. Warning: We are aware that several times Cybercriminals mirrowed our Website and posted on several Forums, Website comments by misuse of our email adresses. These Cybercriminals registerd several similar looking Domains and installed several 1:1 mirrowed Websites which look like our Website 7starsdubai. We have already taken the necessary steps by filing criminal complaints against the Individuals behind this Identity theft an Cybercrime, by misusing fraudulently our Blog Identity 7starsdubai. In Search engines like Google, Yahoo, Bling and others you should always take a close view to the links. If this links do not originaly start with www.7starsdubai.com or http://7starsdubai.worpress.com/.... you will end on a faked mirrowed modificated Website. The genral Background of this Cybercriminals is a Stalking and Smear campaign, faking stories for their personal use, to discriminate Persons with the goal to destroy their reputation.
  • RSS ZDF Heute Germany

    • An error has occurred; the feed is probably down. Try again later.

Archive for the ‘Lawsuit Dubai’ Category

Denton Wilde Sapte sued for $3.7m in Dubai

Posted by 7starsdubai on October 26, 2011


Denton Wilde Sapte sued in Dubai Arabian Business reported

A legal firm in Dubai is being sued for $3.65m after being accused by a former client of professional negligence, in a lawsuit thought to be the first of its kind to be brought before the Dubai International Financial Centre courts, Arabian Business reported.

Denton Wilde Sapte & Co (DWS), a London law firm with offices in DIFC, is being sued by Dubai-based Injazat Technology Fund, a unit of private equity firm Injazat Capital Limited, over its counsel relating to a 2006 investment in Broadlink Research.

The central allegation from ITF is that the law firm, which has since been renamed SNR Denton following a merger, led it into three-year arbitration proceedings because it failed to identify the clause ahead of its expiry at the end of 2007.

SNR Denton & Co declined to comment when contacted by Arabian Business.

“We are aware of the proceedings. However, I am sure you will appreciate that we cannot comment on ongoing litigation,” Michael Kerr, a partner at the firm, said in an emailed response.

continue reading…. source Arabian Business

Posted in Denton Wilde Sapte, Injazat Technology Fund, Lawsuit Dubai, Micheal Kerr DWS Dubai, SNR Denton Dubai | Tagged: , , , | Comments Off on Denton Wilde Sapte sued for $3.7m in Dubai

Dubai Contractual Law – Legal Opinions

Posted by 7starsdubai on April 20, 2011


Having a Problem with your Contractual Partner (Developer in Dubai) ?

Here is an Extract of the  UAE Dubai Contractual Law

Article 243 in particular:

(1) The contract shall apply to the subject matter of the contract and the consideration…shall not de is pend upon receipt or any other unless the law provides otherwise.

(2) With regards to the rights (obligations) arising out of the contract, each of the contracting parties must perform that which he is obligided to do under the contract.

The developer is not entiteled to make the providion of the subject – matter, i.e. the delivery of the Unit dependent upon the receipt of the plot from the master developer and therefore, cannot indedinitely bind the Client to wait for the Developer to receive the plot.
Furthermore, No agreement can run indefinitely and has to be discharged at one time.

Article 244 of the Civil Code in particular……

A Developer is also in Clear breach of Article 244 of the Civil Code in the case of commutative contracts ( One in which each of the contracting parties give and receives an equivalent). If the contract of sale is of this kind, the seller gives the thing sold, and receives the price, which is the equivalent) for specific property, provided the conditions for the validity thereof are satisfied, each of the contracting parties must have an established right to dispose of the property and each shall have an obligation to deliver the subject matter of the contract to , the Developer is nethe other.

Article 246 of the Civil Code in particular…..

(1) The contract must be performed in accordance with its contents, and in a manner consstent whith the requirements of good faith.

(2) the contract shall not be restricted to an obligation upon the contracting party to do that which is ( expressly) contained in it, but shall also embrace that which is appartenant to it by vitue of the law, custom, and the nature of transaction.

Therefore, the Developer not only had the obligation to construct or deliver the Prooperty but als had an implied contractual obligation to do that is necessary to be done in order to complete the performance of the express obligation.
It is the Developer`s implied obligation to ensure that the pre-conditions neceddary for the commencement of construction are met and therefore it is the Developer who is liable if such does not occur.
Even thought the causes are outside the control of the Developer nevertheless legally accountable to the Investor fir such failures.

TERMINATION of Agreements under Law

Article 267 of the Civil Code provides, ” if the contract is valid and binding, it shall not be permissible for either contracting parties to resile from it, nor vary or recind it, save by mutual consent or an order of the court, or under a provision of the law.

Termination of a sale and purchase agreement under the law depends upon several factors and circumstances and may only granted in extreme cases where the breach cannot be remedied.
The court when considering the question of wether to grant termination or to order compensation along with specific performance considers
a) the magnitude of the breach
b) possibility if the agreement can still be performed

Article 727 of the Civil Code states:

(1) In contracts binding on both parties, if one of the parties does not do what he is obliged to do under the contract, the other party may, after giving notice to obligor, require that the contract may be performed or cancelled.

(2) The judge may order the obligor to perform the contract forthwith or may defer ( performance) to a specific time, and he may also order that the contract be cancelled and compensation paid in any case if apprpriate.

As per Article 273 of the Civil Code

(1) In contracts binding on both parties, if force majeure supervenes whih makes the performance of the contract impossible, the corresponding obligation shall cease, and the contract shall be automaticly cancelled.

(2) In the case of partial impossibility, that part of the contract which is impossible shall be extinguished, and the same shall apply to temporary impossiblity in continuing contracts, and in those two cases it shall be permissible for the obligor to cancel the contract provided that the obligee is so aware.

Article 274 goes on state:

” If the contract is cancelled automaticly or by the act of the parties, the two contracting parties shall be restored to the posotion they were in before the contract was made, and if that is not possible, compensation shall be ordered.”

When performance of an obligation under a binding Agreement becomes impossible, the contract will be terminated thereby extinguishing the corresponding obligation and returning the parties to their pre-contractual positions, which each party being required to return that which he had received und the Agreement.

Upon termination the Client is also entitel to receive twelve percent annual interest pursuant to Article 78 of Federal Law No. 8 of 1993 ( the Commercial Transaction Law)
on all payments made towards the Purchase Price of the Unit.

 

Posted in Contractual Law Dubai, Dubai Property Court, Dubai Property dispute, Dubai Property Investors, Lawsuit Dubai | Tagged: , , | Comments Off on Dubai Contractual Law – Legal Opinions

Jumeirah Islands investor wins Dh2.5m payout in a row over construction defects in a villa

Posted by 7starsdubai on March 16, 2011


source The National

A property owner in Nakheel’s Jumeirah Islands development has won a Dh2.5 million (US$680,624) cash payout from the developer, the first such award from the Dubai World Tribunal.

It was also the first time the Tribunal enforced an arbitration decision from another court, which could set a precedent for other disputes involving the developer.

The Dubai International Arbitration Centre last May ruled that Vinod Kumar Dang should be paid Dh2.5m plus interest and legal costs in a row over construction defects in a villa. The property owner then took the matter before the Tribunal to have the award verified and paid out.

The Tribunal is a special body hearing all cases relating to Dubai World, the government-owned business group that is finalising a $24.9 billion debt restructuring. Nakheel, which built Jumeirah Islands, is owned by Dubai World.

Nakheel declined to comment.

Lawyers for Jumeirah Islands had argued that the arbitration award should be struck out, claiming there were technical faults in the language of the judgment. Mr Dang’s lawyers countered that the award was made legitimately in arbitration and that it was the role of the Tribunal to enforce such judgments.

continue reading

Posted in Dubai, Dubai Property Investors, Dubai Real Estate, Lawsuit Dubai, Nakheel, Property Lawsuit Dubai, Rera | Tagged: , , , | Comments Off on Jumeirah Islands investor wins Dh2.5m payout in a row over construction defects in a villa

Investor wins lawsuit against ACI Real Estate Dubai – Development Niki Lauda Twin Tower

Posted by 7starsdubai on March 7, 2010


original source The National
A property investor has been awarded a refund by Dubai Courts for an office unit he bought in a project that is 20 months behind schedule.

The British businessman Ron Oakeley bought two offices in a building in Dubai’s Business Bay that was to be named after the former Formula One racing driver Niki Lauda. The proposed Niki Lauda Twin Towers building was part of a trio of projects launched by Alternative Capital Invest (ACI) Real Estate, a German developer, in late 2007 that were to be
named after famous sport stars. continue reading….

Posted in ACI Real Estate Dubai, Dubai court, Dubai Legal - Real Estate Lawsuits, Dubai Property dispute, Dubai Property Investors, Lawsuit Dubai, United Arab Emirates | Tagged: , , , | Comments Off on Investor wins lawsuit against ACI Real Estate Dubai – Development Niki Lauda Twin Tower

Damac Properties 140 Million Dollar suit under way at Dubai International Financial Centre Court

Posted by 7starsdubai on February 24, 2010


original source Emirates Business24-7

Lawyers representing a German investor, Dr Lothar Ludwig Hardt, said the developer allegedly used the money from other property projects to construct Park Towers, the only development that appears to be ongoing out of the five that Hardt had signed up in February 2007.

“These close links show the other four properties are connected to Park Towers… which should have been finished two years ago,” Ludmila Yamalova, legal consultant and partner at Al Sayyah Advocates and Legal Consultants, told Emirates Business. She said Hardt has invested $9.7 million on five properties which, in addition to Park Towers include the two cancelled projects – Lotus Residences and Wildflower; Ocean Heights, which was scheduled for completion eight months ago; and Water’s Edge, where construction hasn’t been started yet.

The German investor is thus demanding refund of $9.7m and is seeking damages and lost profits caused by the developers’ breach of contract and other violations of the UAE, Dubai and DIFC Courts. Yamalova estimates that damages, loss of profits plus all the legal fees could go up to $140m.

“As of today, defendants have not delivered any of the properties and have not complied with any of the contractual obligations to claimants,” a claim form seen by Emirates Business said.

Defendants have committed a series of violations of UAE, Dubai and DIFC Laws in connection with properties such as enticement and unfairness, illegal sale, failure to obtain necessary approvals, failure to commence construction timely, failure to timely register developer and obtain necessary license, mismanagement of escrow funds and violation of trust account regulations, unfair contracts of adhesion, fraud and deception… illegal competition, bribery, trickery, breach of trust, cheating in commercial transactions, money laundering and accomplice liability,” said the claim form.

…..continue reading

Posted in Damac Dubai, Dubai, Lawsuit Dubai, Lawyer Dubai, Ludmilla Yamalova | Tagged: , , , , | Comments Off on Damac Properties 140 Million Dollar suit under way at Dubai International Financial Centre Court

Dynasty Zarooni Executives charged with defrauding 25 Million

Posted by 7starsdubai on February 18, 2010


original published GulfNews

Gulf News obtained a copy of the arraignment sheet, in which K.M. was charged with offering the businessmen to multiply their money through a bogus investment portfolio. Records said the Indian told the businessmen to provide a monthly payment of Dh300,000 to be invested in real estate projects offering a monthly revenue of Dh1 million starting from the seventh month. KM allegedly got the claimants trust the feasibility of the portfolio by advertising in newspapers and the internet.

The Public Prosecution also charged M.H.Z. and R.Q. with aiding and abetting K.M. by confirming his claims, the act which allegedly resulted in cheating the claimants.

continue reading…..


Real estate fraud

Gulf News also learnt that prosecutors dismissed the charges of real estate fraud, worth hundreds of millions of dirhams, against the suspects for lack of crime.

Al Shaali appealed the dismissal of the real estate fraud charge.

An appeals judge is looking into this plea.

“The jury is only responsible for prosecuting the suspects on the charges of swindling and establishing a bogus investment portfolio … I will not accept any real estate fraud case or complaint,” concluded Presiding Judge Abdul Majid, who adjourned the case until March 10.

According to the charges sheet, K.M. told prosecutors that he bought the properties, which the businessmen described as bogus and non-existent, from developers and he was authorised to sell them. He presented contracts and documents to prove that he was authorised to do so.

Dynasty Zarouni’s chairman claimed in his statement to prosecutors: “Due to the global financial crisis, some of the businessmen’s cheques bounced and when he presented the bad cheques to the police, they complained against him.”

Posted in Al Fajer Properties, Dubai, Dubai law, Dubai Property Investors, Dubai Real Estate Scandal, Dynasty Zarooni, Fraud Dubai, Lawsuit Dubai | Tagged: , , , | Comments Off on Dynasty Zarooni Executives charged with defrauding 25 Million

Dubai legal System an Trial – German Investor filed five motions against Damac Properties

Posted by 7starsdubai on February 10, 2010


original source 7Days Dubai

DAMAC Properties has filed a motion to stop an investor’s lawsuit being heard in the Dubai International Financial Centre (DIFC) courts, and has also moved to strike the case entirely, the lawyer for the investor told 7DAYS yesterday.

German investor Lothar Hardt, who has invested in around dhs100 million worth of properties from Damac, filed a suit against the firm in December with the DIFC Courts, alleging breaches of contracts in the form of delays, misrepresentation of properties, fraud and improper use of funds, among other claims.

Hardt has invested in Lotus Residences and Water’s Edge in Business Bay, Park Towers at DIFC, Wildflower in Jumeirah Golf Estates and Ocean Heights in Dubai Marina.

He filed the suit with the DIFC Courts because Park Towers is located at DIFC and Damac is a DIFC-listed company.

Ludmila Yamalova, a partner at Al Sayyah Advocates and Legal Consultants, which is handling the suit, previously told 7DAYS that having the case heard at the DIFC Courts has a number of advantages over the Dubai Courts, including the fact that DIFC operates under British law, which has had more experience of property disputes in comparison with Dubai law.

Yamalova said yesterday that Damac was contesting the jurisdiction of the case and was also moving to strike out the case due to a lack of “reasonable grounds”.

However, she said Hardt had filed five motions in response to Damac, including a motion for judgement by default and an award of damages of over $132 million because Damac failed to support its motion with proper statements and failed to file its defence, and defences for individuals named in the case, on time.

The requested damages include actual damages of about $44 million  in lost profits and legal expenses, and punitive damages, which can be  up to three times the value of actual damages in the DIFC Courts.

The motions of both Hardte and Damac will be heard at DIFC Courts later this month.

Hardt told 7DAYS in January that if DIFC Courts decided jurisdiction belonged with the Dubai Courts, he would still pursue the suit.

“First I am hoping that I will regain my money and the second thing is, while I have been negotiating with Damac I’ve seen so many people in the situation where all the money they had was in one apartment and they stand to lose it all… so I see myself also as being the spearhead for these people,” he said.

Read also: An interesting case to watch – German Investor is suing Damac Properties

Posted in Dubai, Dubai Legal - Real Estate Lawsuits, Dubai Property legal, Lawsuit Dubai | Tagged: , , , , , | Comments Off on Dubai legal System an Trial – German Investor filed five motions against Damac Properties

German investor is suing Damac Properties Dubai – an interesting court case to watch in the coming weeks

Posted by 7starsdubai on January 29, 2010


source The National by Angela Giuffrida

Dubai, January 2010

German investor Lothar Hardt is suing Damac Properties for alleged breach of contract in what could be the largest lawsuit taken by an individual against a Dubai developer.

Lothar Hardt has filed his case against one of the region’s biggest developers and four of its executives at the Dubai International Financial Centre Courts.

Mr Hardt claims to have invested US$9.7 million (Dh35.6m) across five of Damac’s developments in Dubai, including one building on land he says is owned by the UN.

The dispute relates to a series of off-plan investments made since 2006 in projects including: Park Towers at DIFC; Water’s Edge and Lotus Residences at Business Bay; Wildflower at Jumeirah Golf Estates; and Ocean Heights at Dubai Marina.

Mr Hardt alleges the developer failed to deliver the projects on time, mismanaged escrow accounts relating to some of the projects and did not register the transactions with Dubai’s Land Department, court documents show.

Damac is also accused of selling property in Water’s Edge, Lotus Residences and Wildflower to Mr Hardt without owning the land or obtaining construction permits.

The land on which Lotus Residences is planned is owned by the UN, the court documents claim.

Mr Hardt, considered one of Damac’s “VIP investors”, is also suing for additional loss of income after he claimed to have signed agreements with retail outlets that were going to rent the commercial units he bought from Damac.

“Through my experience with Damac I have been very frustrated,” he said. “I think this has to be fought in public. When I pursue something, I will really pursue it until the end. This is a young country but I’m confident in the new laws here.”

Now Mr Hardt is demanding a refund of the $9.7m he has invested in Damac projects, in addition to damages and lost profits.

Damac has acknowledged the case against it and four of its executives: Hussain Sajwani, the company chairman; Faisal Sajwani; Sofyan Khatib; and Peter Riddoch, a former chief executive.

But the company is contesting that the case be heard at DIFC, where it is registered and where one of the projects, Park Towers, is located.

It has until February 4 to declare its reasons for contesting the DIFC’s jurisdiction, which follows English common law and, unlike the main Dubai courts system, allows foreign lawyers to represent clients and cases to be heard in English.

Damac declined to comment yesterday.

If all or part of the case takes place at DIFC, it will be the first major dispute against a property developer to be heard at the court since it was set up in 2004, said Ludmila Yamalova, a partner at Al Sayyah Advocates and Legal Consultants, which is pursuing the case on behalf of Mr Hardt.

“We think at least part of the case has to be heard at DIFC, such as the part that relates to projects located there, like Park Towers,” said Ms Yamalova. “Damac is also a DIFC-registered entity.”

If Damac’s bid to have the case heard elsewhere is granted, then the rest of the dispute would have to go through the main Dubai courts system, which is more costly for complainants as they have to pay separately for each contract dispute, rather than take a class action.

“Right now, investors think there is no justice or no recourse, but at DIFC we do have a world-class institution that can deal with these issues at an international level … this is what DIFC has aimed to represent,” added Ms Yamalova.

“If DIFC steps up to the plate and starts looking at these cases, it will give people confidence.”

Read also……from The National …Legislation lifts investor outlook

Posted in Damac, Dubai, Lawsuit Dubai, Lothar Hardt | Tagged: , , , , | Comments Off on German investor is suing Damac Properties Dubai – an interesting court case to watch in the coming weeks

 
%d bloggers like this: