DIFC 330/2020

Lerdan Rental Llc v Linana Engineering Llc

This case involved liability of an equipment lessor to pay for equipment even thought it had not been used because of the government ordered lockdown. A key issue was whether force majeur would apply when there was no force majeur terms in the contract.

Background

The Claimant Leardan Rental LLC was a company registered in Dubai, UAE, as was the defendant Linana LLC.

The dispute involved the alleged non-payment of invoices issued to the Defendant by the Claimant pursuant to a Rental Agreement of a total amount 62,834.10 AED.

On 27 September 2020, the Defendant filed an Acknowledgment of Service setting out its intention to defend all of the claim.

The parties failed to reach a settlement before the SCT Judge.

The Claimant entered into the Agreement under which the Defendant hired equipment from the Claimant and effectively agreed to the Claimant's terms and conditions. The Claimant fulfilled their obligations under the Agreement by delivering the required equipment to the Defendant, which the Defendant confirmed they received.