DCC 390/1999

The case was a claim for compensation by an agent against two parties who had sold and bought goods which the claimant was the UAE agent for. UAE agency legislation prohibits imports into the country of goods which are support a registered agency by anyone but the registered agent. Once goods have been imported by such an agent they can be legal traded by other parties in the country.

Background

A claimant filed a claim against first and second defendants ordering them not to infringe the claimant's agency within the remit of its activities, and to pay 200,000 AED in compensation for loss endured as the first defendant had bought products from the second defendant which were the subject of the claimant's agency. The court of first instance rejected the claim and the claimant appealed. The court of appeal affirmed the judgement.

Decision

The claimant appealed by cassation arguing that the judgement misinterpreted the Commercial Agencies Law by stating that prohibition only applies to imports from abroad, and not trading within the country. It argued the law should be interpreted to mean prohibition extends to all dealings with the goods in the agent's territory.