DCC 371/2004, 431/2004
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
General Banking & Finance Law, Lending & Security, Guarantees, Negligence, Police, Civil Evidence, Regulation of Dealing in Securities, General Contract Law
Copyright
LexisNexis
Decision date
4 Jun 2005
Catchwords
Banking Services – Letters of Credit – Guarantee – Bank – Negligence – Police – Contract – Expert – Evidence – Securities
This case involved a claim by a company and their guarantors after bank facilities were ceased and securities held as guarantee were sold. Although the bank had been informed by the police of an investigation into their client's affairs, under the contract between the parties they had not notify the client and his did not impact the guarantee. The case also looked at the expert report.
Background
A number of plaintiffs filed lawsuit No 698 of 2000 (Commercial) against a Bank before the Dubai Court of First Instance requesting a judgment to oblige the bank to pay to the first Plaintiff 5.700.000 AED and to the two Plaintiffs (First and Second) 5.5000.000 AED and 12% interest from the 29/05/20000 and for the first amount as of 5/6/2000.