Dubai Court of Appeal Rejects Dh150,000 Compensation Claim, Upholds Dismissal

The Dubai Court of Appeal has upheld a lower court ruling dismissing a Dh150,000 compensation claim, finding no abuse of legal rights and ordering the appellant to bear court costs, legal fees and forfeiture of the security deposit.

The court confirmed that while the appeal was admissible in form, it was rejected on merit, thereby affirming the Court of First Instance judgment in full.

The dispute arose from a former employment relationship at an aircraft maintenance engineering company in Dubai. The defendant had been dismissed over alleged violations linked to his employment.

Following his termination, an email sent to a prospective employer stated that he had been dismissed for misconduct and referenced pending labour and legal matters. The plaintiff denied authoring the email, claiming he was only copied on it.

Alleging reputational damage and loss of job opportunities, the former employee filed a police complaint accusing the defendant of libel and online insult. Although an investigation was initiated, the Public Prosecution later closed the case due to insufficient evidence.

The plaintiff then moved to civil court, arguing that the complaint led to a temporary travel ban and caused financial loss, reputational harm and psychological distress. He claimed the report was retaliatory and filed in bad faith.

The defence argued that UAE law protects the right to approach authorities and that civil liability arises only when complaints are made with malicious intent or without legitimate purpose. It also submitted that precautionary measures such as travel bans are imposed by authorities and cannot be attributed to the complainant.

The court held that reporting suspected criminal conduct is a lawful act under UAE law unless it is proven to have been filed without legitimate interest or with intent to cause harm. Citing Article 106 of the UAE Civil Transactions Law, the court reiterated that abuse of rights requires clear evidence of bad faith or improper purpose.

In its findings, the court noted that the plaintiff failed to establish any wrongdoing by the defendant, including lack of evidence of malicious intent, abuse of process or a direct causal link between the complaint and the alleged damages.

The court also observed that the closure of a criminal case for insufficient evidence does not, by itself, prove that the original complaint was malicious or improperly filed.

Accordingly, the Court of Appeal upheld the dismissal of the Dh150,000 compensation claim and ordered the appellant to bear all costs and legal expenses.

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