Dubai Court dismisses Dh101,000 claim in 11-year-old investment dispute

Dubai: What began as a commercial transaction more than a decade ago has ended in a courtroom battle, with a Dubai civil court rejecting a lawsuit brought by an Asian investor who claimed he had transferred more than Dh50,000 to a foreign company in 2013.

According to Emarat Al Youm, the plaintiff alleged that he wired $13,753 (Dh50,611) to the company under an investment agreement but never received any services in return, nor was the money refunded. 

In his filing, he sought repayment along with compensation, bringing his total demand to Dh101,222 plus fees and expenses.

According to court documents, the investor said communication with the company and its director ceased years ago, prompting him to take the matter to the Centre for Amicable Settlement of Disputes, which later referred the case to Dubai courts. He submitted emails and a memorandum issued by the company in 2013 instructing him to make the transfer.

The company did not appear at any hearing despite being formally notified, while the plaintiff appeared in person and insisted on his claims. To assess the evidence, the court appointed a financial expert to examine the documents and verify whether any transfer had been made.

The expert’s report concluded that the plaintiff had not produced any bank records or account statements to prove that the funds were actually sent to the defendant. The documents he provided, the expert found, were insufficient to establish a binding debt.

In its ruling, the court underscored a principle central to UAE civil law: the presumption of “innocence of liability.” Debt, it said, cannot be imposed without clear and conclusive evidence, and the burden of proof lies with the claimant. The judgment added that while the court has full discretion in evaluating evidence and expert reports, it is not required to guide litigants on how to substantiate their claims.

With no definitive proof of a bank transfer, the court ruled the lawsuit baseless in both fact and law. It dismissed the case and ordered the plaintiff to pay court fees and costs.