Dubai court orders Dh2.25m compensation after breach of trust conviction

Dubai: The Dubai Civil Court has ordered an Arab defendant convicted of breach of trust to pay Dh2.252 million in compensation to the victim for material and moral damages, following a final criminal judgment that sentenced him to one year in prison and deportation.

The Dubai Court of First Instance for Civil Claims said the compensation was due after the misdemeanours court had found the defendant guilty of misappropriating the disputed sum and issued a custodial sentence along with an order for his removal from the country.

According to case filings, the plaintiff lodged a police report accusing the defendant of breach of trust and unlawfully seizing the funds. Public prosecutors investigated and referred the case to the criminal court, which convicted the defendant after establishing that he had taken the money, Emarat Al Youm reported.

In his civil claim, the claimant said the offence caused significant financial and moral harm, including the loss of the principal amount, the inability to invest it, and non-material damage resulting from the violation of his property rights and the need to pursue lengthy legal action.

In its reasoning, the court said liability for a harmful act requires three elements: fault, damage and a causal link between them. It noted that, under Article 282 of the Civil Transactions Law, a harmful act may be either a positive act or an omission, whether intentional or negligent.

The court said the burden of proof rests with the injured party but added that a final criminal judgment is binding on the civil court in matters it has conclusively decided, including the occurrence of the act, its legal classification and its attribution to the defendant. It cited relevant provisions of the criminal procedures and evidence laws that prevent the civil court from re-examining those issues.

Applying that principle, the court said the defendant’s fault was established by the final criminal conviction for misappropriating the funds and could not be challenged before the civil court.

It added that the defendant’s actions resulted in the loss of the money, deprivation of potential investment returns and additional legal costs, as well as moral damage arising from the infringement of property and the need to resort to litigation.

The court said the assessment of compensation is a matter for the trial court’s discretion and may be awarded as a consolidated sum without assigning a separate value to each head of damage. It awarded Dh2.252 million in compensation, in addition to legal interest, court fees and lawyers’ costs.