DCC 213/1998

This case involved a request for compensation after it was claimed that a distribution agreement between a local and a foreign company had been terminated without good reason. The claimant could not provide evidence the agreement had been properly registered so the claim could not be heard.

Background

A local company brought a claim against a foreign company ordering the defendant to pay it 6,400,000 AED in damages. The claimant stated it had been the defendant's distributor for over 25 years but the defendant had terminated the agreement without cause. Following termination, the defendant had started selling the same goods as the claimant in the UAE market, and had continued to sell them to the same market and consumers as the claimant. Both the court of first instance and appeal court dismissed the claim. The claimant appealed by cassation stating that there was no valid reason for the termination of the agreement, it had suffered considerable loss of earnings, and the defendant was benefiting from relationships which the claimant had taken years to build. It was stated the termination had been without a justified cause. The claimant filed several documents in support of its claim.

Decision