Court Dismisses Husband’s Dh5.8 Million Claim Over Wife’s Property Sale

Dubai court has dismissed a lawsuit filed by a husband seeking more than Dh5.8 million in financial and moral compensation after accusing his wife of unlawfully transferring and selling their family home while he was abroad.

The case revolved around a general power of attorney the husband had granted during their marriage, authorising his wife to manage his affairs. The court found that the document explicitly permitted her not only to buy and sell property on his behalf but also to gift assets to herself or others and accept such gifts in his name.

Court records show that the wife exercised this authority to execute a formal gift contract, transferring ownership of the property to herself. The transaction was notarised at the Dubai Land Department, fulfilling all legal requirements.

Nearly two years later, she sold the property for approximately Dh5 million. The husband, who had since revoked the power of attorney, filed a claim alleging fraud, deception and breach of trust, arguing that the actions exceeded the scope of the authority granted. He sought Dh5.64 million in material damages and an additional Dh250,000 in moral compensation.

In her defence, the wife maintained that all actions were carried out within the powers granted to her. She submitted supporting documents, including email correspondence from the husband indicating his intention to gift her the property, along with official communications related to the transfer.

The court emphasised that a power of attorney is a legal instrument that allows a person to authorise another to act on their behalf, with the extent of authority defined by the wording of the document. Upon reviewing the mandate, the court found that it clearly extended beyond administrative functions and expressly allowed the wife to transfer property to herself.

It also noted that a valid gift under the law involves a transfer of ownership without consideration, based on the intention to donate. In this case, the court found that all essential elements of a gift were satisfied, supported by formal registration and subsequent ownership transfer.

The court further observed that revoking gifts between spouses is generally restricted unless exceptional circumstances exist, none of which were established in this case.

Accepting the email correspondence as valid evidence, the court stated that such communications carry legal weight when not disputed by the parties.

On the claim for compensation, the court underlined that liability requires proof of fault, damage and causation. It concluded that no fault could be attributed to the wife, as her actions were legally authorised, and no unlawful harm had been demonstrated.

The claim was therefore dismissed in full, with the husband ordered to pay court fees, expenses and Dh1,000 in legal costs.

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