Registered in friend’s name: Abu Dhabi court rejects car ownership dispute

Dubai: An Abu Dhabi court has dismissed a lawsuit filed by a young man against a friend he accused of unlawfully selling a car registered in the friend’s name on a temporary basis. The court ruled that the claimant failed to prove ownership or a trust arrangement.

The plaintiff, an Asian national, sought a court order to compel the defendant to transfer ownership of the car or repay its value of Dh51,509, along with 12% legal interest from the date of filing and Dh20,000 in compensation for alleged material and moral damages.

Dispute over temporary registration

The claimant told the court he had purchased the vehicle and paid the full amount, but could not register it in his own name at the time due to expired residency documents. He said he registered the car in the defendant’s name on the understanding that ownership would later be transferred once his documents were renewed.

Alleged sale sparks legal action

After renewing his documents, the claimant contacted the defendant to transfer ownership, only to find the car no longer in the defendant’s possession. The defendant allegedly failed to provide a clear explanation, prompting the claimant to believe the car had been sold and proceeds retained.

Court rules claim lacked evidence

The court noted that the claim rested solely on the assertion of payment, without any written agreement, power of attorney, or sales contract proving ownership or a trust arrangement. Under UAE law, ownership requires an official contract and registration with the relevant authority, not just payment.

No proof of trust or obligation found

The court also found no written agreement or correspondence showing that the defendant was obliged to later transfer ownership, nor any evidence that the registration was symbolic or for safekeeping purposes.

In the absence of conclusive legal proof, the court ruled the case had no sufficient factual or legal basis, dismissed the claim in full, and ordered the claimant to bear court fees and costs.