Dubai Civil Court Orders Man to Repay Dh3.5 Million in Breach of Trust Case

A Dubai civil court has ordered an Arab man to return Dh3.5 million he misused under a trust receipt, along with Dh200,000 in compensation, after a final criminal conviction for breach of trust.

 

Court records show that the dispute began when the claimant filed a civil lawsuit seeking the recovery of funds that had been handed to the defendant under a trust receipt. The document clearly stated that the money was entrusted to the defendant and had to be returned upon demand.

 

The receipt also specified that failure to return the amount would amount to a breach of trust and unlawful appropriation of the funds.

 

According to the claimant, the defendant refused to repay the money despite several requests, prompting him to lodge a police complaint. The case was later referred to the Public Prosecution and subsequently to the criminal court, which convicted the defendant of breach of trust.

 

The criminal court sentenced him to three months in prison, imposed a fine equal to the misappropriated amount and ordered his deportation. The civil claim was referred to the competent civil court.

 

The defendant challenged the criminal judgment, but the appellate court upheld the conviction. The ruling later became final after it was not appealed before the Court of Cassation.

 

In its decision, the civil court noted that final criminal judgments are binding in civil proceedings regarding the occurrence of the offence, its legal classification and the responsibility of the accused, in line with the provisions of the evidence and criminal procedure laws.

 

The court determined that the defendant had unlawfully appropriated Dh3.5 million entrusted to him, resulting in financial harm to the claimant. It found that the claimant suffered material losses, including the loss of the funds and the inability to invest them for nearly two years.

 

Referring to the provisions of the UAE Civil Transactions Law, the court ordered the defendant to repay the full amount and pay Dh200,000 as compensation for the financial damage caused by the delayed repayment.

 

The court further ruled that legal interest of 5 per cent per year would accrue from the date the judgment becomes final until the full amount is paid, and directed the defendant to bear the court fees and legal expenses.

 

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