Dubai Court Throws Out Dh360M Damages Suit, Upholds Finality of Committee Ruling

The Dubai Civil Court has dismissed a Dh360 million compensation lawsuit filed by a company manager, ruling it inadmissible as it effectively challenged a decision issued by a special judicial committee whose rulings are final and not open to appeal. The claimant was also directed to bear legal costs and pay Dh5,000 in lawyers’ fees.

The manager had alleged significant financial and reputational damage after being accused of forgery and subjected to enforcement actions, including asset attachment and disruption of business operations. He argued that these measures were arbitrary and severely affected his commercial standing.

According to court filings, he claimed annual business losses of about Dh60 million, which accumulated to Dh360 million by 2026. He also cited Dh68 million in disputed cheque-related funds as part of his overall losses.

The claimant contended that the special judicial committee had exceeded its jurisdiction by issuing decisions of a penal nature, asserting that such powers rest solely with competent courts. He further raised procedural objections, including challenges to the defendants’ legal standing and the validity of the committee’s legal basis. He also sought the appointment of an expert to assess damages, suspension of enforcement actions, and restoration of his reputation.

However, the court found that the substance of the claim amounted to a direct challenge to the legality and binding effect of the committee’s ruling. It stressed that decisions of such committees are final and cannot be contested before civil courts.

The court further held that the compensation claim was intrinsically linked to disputing that decision, making it an impermissible indirect appeal. It added that the request to appoint an expert was secondary and could not be entertained once the primary claim was deemed inadmissible.

Accordingly, the court dismissed the case in full, reinforcing the principle that rulings of special judicial committees are final and beyond challenge before civil courts.

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