Dubai court orders Dh1.57m compensation in rare Patek Philippe watch fraud case

Dubai: A Dubai civil court has ordered an Arab national to pay Dh1,572,500 in compensation after he was found to have 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 taking money he received as an agent to buy luxury watches, failing either to complete the purchase or to return the funds. The ruling followed a final criminal conviction that resulted in a prison sentence and a fine.

According to court records, the case began when the defendant contacted the claimant via WhatsApp, presenting himself as a collector of rare watches and claiming he could source limited-edition Patek Philippe timepieces. He sent photographs of the watches and offered them for Dh1,172,500, an amount the claimant transferred in anticipation of completing the deal, Emarat Al Youm reported.

However, the defendant repeatedly delayed delivery of the watches and later refused to refund the money, prompting the claimant to file a criminal complaint. The case was registered with the relevant police station 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, along with ordering provisional compensation. An initial deportation order was later overturned on appeal, while the conviction itself was upheld, making 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 brought, as well as compensation for material and moral damages. He submitted documentation including copies of the final criminal judgments, a certificate confirming their finality, and evidence of the watches’ market value.

The defendant requested that the civil case be suspended pending a cassation appeal, and alternatively asked for the case to be referred for investigation to prove that the watches had been delivered. The court rejected both requests, ruling that the evidence on file was sufficient to form its conviction.

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

The court found that all elements of tortious liability were present, including proven fault based on the criminal conviction, material damage resulting 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 the existence of a direct causal link between the fault and the damage.

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