Al Ain court rules losing a case does not exempt a client from contractual legal fees

The Al Ain Civil, Commercial and Administrative Court has ordered a client to pay Dh40,000 to a lawyer who represented him in a criminal case, ruling that the loss of a lawsuit does not in itself justify non-payment of agreed legal fees.
The court directed the defendant to pay Dh30,000 in legal fees as stipulated in the contract between the parties, in addition to Dh10,000 as a contractual penalty, noting that “losing a court case does not, by itself, constitute grounds for exemption from payment”.
In its ruling, the court said a female lawyer had filed a claim against a former client seeking Dh41,500, along with annual late-payment interest of 9 per cent from the date the case was registered until full settlement, as well as court costs and legal expenses, Emarat Al Youm reported. The lawyer stated that the two had agreed, under legal fees contract worth Dh30,000, that she would represent him in a criminal case and a related lawsuit filed against him.
The lawyer said that she had carried out her duties before the competent authorities and fully fulfilled her contractual obligations, but the defendant failed to pay any of the amounts due despite their maturity. She submitted a copy of the fees contract in support of her claim.
The court found that the contract required the lawyer to provide legal advice and representation, and that the final instalment under the agreement had fallen due two years earlier. It said the defendant had provided no evidence that he had paid any part of the Dh30,000 fee, nor the 5 per cent value-added tax due on the amount, while the lawyer had proven she met all her obligations.
The court added that a lawyer’s obligation in such cases is one of due care rather than guaranteeing a specific outcome, a principle well established in legal doctrine and case law. It said the defendant had failed to prove any negligence on the lawyer’s part, and that his argument that she did not achieve the desired result and that he lost the case could not, on its own, absolve him of his payment obligations.
On the request for the contractual penalty, the court said contracts are binding on the parties and may not be revoked or amended except by mutual agreement or as provided by law. It found that the defendant had breached his obligation by failing to pay amounts that were clearly defined and due within agreed timeframes.
The agreed penalty clause, the court said, constituted pre-assessed compensation for damage resulting from breach or delay, without the need to prove the extent of such damage. Having established the breach, the court ruled the lawyer’s claim for the penalty was well founded.
The court ordered the defendant to pay Dh30,000, plus 5 per cent VAT, and Dh10,000 as a contractual penalty, as well as court fees and expenses, while rejecting any further claims.
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