DIFC 388/2019

Jasmine v Jabez [2019]

This case involved a claim after a cheque which had been paid for a partner's share in a company in financial difficulties as agreed bounced and the amount was not paid. A key issue was whether the successful filing of the case with the DIFC Courts meant jurisdiction was accepted when the company was registered in Dubai and the agreement did not specify the court jurisdiction for any dispute.

Background

On 25 February 2015, the Claimant, the Defendant, and four other parties entered into an arrangement to set up a limited liability company, with each partner receiving their shares respectively. Shortly after the company faced financial problems that threatened its existence and the Defendant entered into an agreement with the partners of the company to buy out their shares and continue to run the company.

The Defendant sought to buy the Claimant's shares by post-dated cheques and cash. The Claimant received three cheques from the Defendant, two of which were cashed and one was still pending in the amount of AED 8,750.