Law firm wins Dh1.165 million case against company in Dubai

The company terminated the law firm’s services without justification,

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Dubai: A Dubai civil court has ordered a company to pay Dh1.165 million to a law firm in unpaid legal fees, along with 5 per cent annual interest from the date of filing the case until full settlement, and to bear court fees and expenses.

The ruling followed a dispute between the two parties after the company terminated the law firm’s mandate and failed to settle agreed litigation fees.

According to case details, the parties had signed an agreement appointing the law firm to represent the company in a civil lawsuit, with compensation structured as an upfront payment and a percentage of the final awarded amount.

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The law firm undertook the case from the outset, preparing and filing the statement of claim, submitting legal memoranda and defences, and closely following all judicial procedures.

Court records showed that the firm attended hearings before the Court of First Instance, participated in expert proceedings, and submitted supporting documentation. The case resulted in an initial ruling in favour of the company, ordering the opposing party to pay Dh10.02 million, in addition to legal interest and court fees.

The firm continued representing the company before the Court of Appeal, filing appeals and defence submissions, and later pursued the matter before the Court of Cassation. The higher court ultimately overturned the earlier judgment and referred the case back for reconsideration.

However, at an advanced stage of litigation, the company terminated the law firm’s services without justification, prompting the firm to file a claim for its unpaid fees.

In its judgment, the court found that the law firm had fulfilled its contractual obligations and exercised due professional diligence throughout all stages of the case, affirming its entitlement to the agreed fees.

The court noted that the awarded amount was calculated based on the agreed percentage of the claim value, in addition to the advance payment stipulated in the contract.

It also ruled that interest would be applied as compensation for delayed payment, stating that the debt was fixed, due, and clearly quantified.