DCC 239, 244/2008

This case involved a party to a concession agreement to make a drink who had failed to produce the relevant quantities and claimed this was because they had not received necessary documentation. Key issues included where a liquidated damages clause could stand and the court's authority to decide on a party's standing in the case.

Background

The Plaintiff proceeded to file original proceedings under roll (392/2005) before the Dubai Court of First Instance against multiple Defendants.

The Plaintiff sought compensation of around EUR 5 Million on the basis that it, the Plaintiff, was the owner of intellectual property relating to drinks that had been consigned to, on a concession basis, to the First Defendant.

The Plaintiff had agreed, in writing, with the First Defendant to allow the First Defendant to assign the contract to the Second Defendant.

As part of the agreement that had been concluded between the Plaintiff and the First Defendant was a stipulation that the Second Defendant should produce more than 48 Million Litres of the Plaintiff's product annually.