DCC 25, 27/2007

This case involved the rescission of a contract. A key issue was whether the Dubai court had jurisdiction when the contract was created in Germany but one of the parties lived in Dubai. The case also looked at the interest due and whether retranslation of the documents was necessary.

Background

Some Plaintiffs filed suit No. 786/2005 before the Dubai Court of First Instance against the Defendant requesting DM 75,814,517 or its equivalent of 1,853,231 AED and an interest of 10% per annum and to confirm a provisional seizure No. 3578/2005 and make it effective. The Plaintiffs explained that under an agreement between the Second Plaintiff - the wife of the First Plaintiff - and the Defendant to manage and invest the funds of the first, the Defendant received from the Second Plaintiff DM 150,000 and DM 400,000. The two agreements included the transfer of the amount to the Defendant to invest it in the purchase and sale of stable shares in the financial market with an interest of 10% per annum. The Defendant refused to refund the amounts he received and the interest and since they were living in Dubai, the Plaintiffs filed the lawsuit No. 786/2005.