DCC 138/1994/1
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
General Construction Law, Building Contracts
Copyright
LexisNexis
Decision date
13 Nov 1994
Catchwords
Compensation – Delay penalties – Contract – Agreement – Non-completion of work – Manufacture – Aluminium – Penalty clause – Construction
The Court of Cassation looked at a case concerning a lawsuit filed by the appellant company requesting two compensation orders, both compelling the respondent company to pay them compensation for delay penalties resulting from the respondent company's failure to carry out its obligations under their contract. The appellant contests the judgment as the Court of Appeal and Court of First instance omitted to discuss the appellant's claim for compensation to include the value that the owner of the building deducted from its payment as a result of the respondent's non-completion of work and challenged the expert's report on the basis that a penalty clause supersedes the applicability of customs. The Court of Cassation reversed the appealed judgment amending the compensation value agreed upon in the contract and referred the lawsuit to the Court of Appeal for re-adjudication regarding the claim for compensation for the delay penalties the appellant borne from the building owner due to the respondent company's defaulting their obligations.
After perusing the documents, and hearing the summary report read out by the Judge-Rapporteur ------, and after pleading and deliberations,
Whereas the appeal has fulfilled its requirements in form,