DCC 105/2008
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
General Employment & Labour Law, Restrictive Covenants & Confidential Information in Employment, Contract & Conditions of Employment, General Contract Law
Copyright
LexisNexis
Decision date
30 Mar 2009
Catchwords
Employment – Contract – Non-compete clause – Obligations – Compensation – Competition – Field of activity – Contractual violation – Contractual liability
The appellant company filed a lawsuit requesting an order against their former employee (the respondent) for material damages for breaching the non-compete clause contained in the contract of employment. The appellant company appeals by cassation for their full claimed amount. The Court of Cassation dismissed the appellant company's appeal on the grounds that the judgment of the Court of First Instance, confirmed by the Court of Appeal ruled the dismissal of compensation for competition. This was on the basis that the field of activity of the company the former employee moved to does not compete with the appellants' activity and the appellant company failed to prove the former employee's contractual violation, which completely eliminates his contractual liability.
Court Panel: Presided by the Judge Mohammed Nabil Ryad, President of the Circuit, and with the membership of the following judges: Abdul Moneim Mohammed Wafa, Ahmed Abdul Rahman Al Zawi, Majed Ali Kotob, Samer Fayzi Abdel Hamid.
Pursuant to the perusal of the documents and the hearing of the summary report recited during the session by the Judge-Rapporteur …, and after deliberation;
Whereas the appeal in cassation has fulfilled its requirements in form;