Court Awards Dh1.57M Compensation in Rare Patek Philippe Watch Fraud

A Dubai civil court has ordered an Arab national to pay Dh1,572,500 in compensation after finding that he misappropriated funds entrusted to him to purchase rare Patek Philippe watches.

The Court of First Instance ruled that the defendant had committed a breach of trust by receiving money as an agent to buy luxury timepieces but failing to complete the transaction or return the funds. The civil ruling followed a final criminal conviction that resulted in a prison sentence and a fine.

Court records show that the defendant approached the claimant via WhatsApp, presenting himself as a collector of rare watches and claiming he could source limited-edition Patek Philippe models. He shared photographs of the watches and offered them for Dh1,172,500, an amount the claimant transferred in anticipation of the purchase.

However, the defendant repeatedly delayed delivery and later refused to refund the money, prompting the claimant to file a criminal complaint. The case was registered with the police and referred to the Public Prosecution, which charged the defendant with breach of trust.

The criminal court convicted the defendant in person, sentencing him to one month in prison and fining him Dh1,172,500, in addition to ordering provisional compensation. While an initial deportation order was later overturned on appeal, the conviction itself was upheld, rendering the judgment final.

Following the criminal ruling, the claimant filed a civil lawsuit seeking Dh2.833m, representing the value of the watches at the time the case was filed, along with compensation for material and moral damages. He submitted copies of the final criminal judgments, a certificate confirming their finality, and evidence of the watches’ market value.

The defendant requested that the civil proceedings be suspended pending a cassation appeal and alternatively sought a referral for investigation to prove that the watches had been delivered. The court rejected both applications, ruling that the evidence on record was sufficient to reach a decision.

In its judgment, the court held that a final criminal ruling has binding authority before the civil courts on matters already decided, precluding any re-examination of fault or responsibility once these have been conclusively established.

The court found that all elements of civil liability were present, including proven fault based on the criminal conviction, material damage arising from the loss of a substantial sum of money, and moral harm caused by deprivation of the funds and the resulting distress. It also confirmed a direct causal link between the wrongdoing and the damage.

Taking these factors into account, the court assessed fair compensation for both material and moral damages at Dh1,572,500. It further ordered the defendant to pay statutory interest at 5 per cent per year from the date the judgment becomes final until full settlement, along with court fees, expenses and legal costs.

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