Dubai court upholds claim in Dh3.5m breach of trust dispute
Defendant must repay funds with compensation and annual legal interest
Dubai: A civil court in Dubai has ordered a man of Arab nationality to repay Dh3.5 million he misappropriated under a trust receipt, along with Dh200,000 in compensation, following a final criminal conviction for breach of trust.
According to court records, the case began when the claimant filed a civil lawsuit seeking the return of money that the defendant had received under a trust receipt explicitly stating the funds were entrusted to him and must be returned upon request.
The document stipulated that failure to return the amount would constitute a breach of trust and misappropriation of the funds, Emarat Al Youm reported.
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The claimant said the defendant refused to return the money despite repeated demands, prompting him to file a police complaint. The case was subsequently referred to the public prosecution and then to the criminal court, which convicted the defendant of breach of trust.
The court sentenced him to three months in prison, fined him the amount misappropriated and ordered his deportation, while referring the civil claim to the competent court.
The defendant appealed the criminal ruling, but the appellate court upheld the judgment, which later became final after it was not challenged before the court of cassation.
In its ruling, the civil court said that final criminal judgments carry binding authority in civil proceedings with regard to the occurrence of the crime, its legal classification and the attribution of responsibility to the accused, in accordance with provisions of the evidence and criminal procedures laws.
The court found that the defendant had wrongfully appropriated the Dh3.5 million entrusted to him, causing financial harm to the claimant. It ruled that the claimant suffered material damage, including the loss of the funds and the inability to invest them for nearly two years.
Citing provisions of the UAE Civil Transactions Law, the court ordered the defendant to return the full amount and pay Dh200,000 in compensation for financial losses resulting from the delayed return of the funds.
The court also ruled that legal interest of 5 per cent per year would apply from the date the judgment becomes final until full payment is made, and ordered the defendant to cover court fees and legal costs.
