Dubai Court Orders Car Dealership to Refund AED 700,000 for Non-Delivery
A dispute over a luxury vehicle purchase leads to legal action against a used car dealership.
The Civil Court in Dubai has compelled a used car dealership to refund AED 700,000 to an Asian client who had attempted to purchase a luxury vehicle.
The client, who sought to register the car under his father's name, was dismayed to find that the vehicle was unavailable.
After unsuccessful attempts at amicable resolution, he filed a lawsuit against the company's manager.
The company's director, a European national, responded by filing a criminal complaint alleging defamation against the plaintiff through social media platforms and accused him of fraud.
Additionally, he launched a counter civil lawsuit.
However, the court ruled in favor of the plaintiff, acknowledging his right to the funds paid to the dealership.
The plaintiff initiated civil proceedings against the used car dealership and its manager, claiming AED 700,000 based on a verbal agreement made between him, his father, and the manager to purchase a luxury car for the specified amount, with assurances of timely delivery.
According to the plaintiff, he paid the amount in installments via bank transfers and received a receipt issued in his father's name from the dealership's manager.
Upon arriving at the dealership on the agreed-upon date to collect the vehicle, he found its premises deserted.
Subsequent contact with the manager yielded no results, compelling the plaintiff and his father to pursue legal action.
They presented evidence including bank transfer records and other documents to support their case.
The legal representative for the defendants contended that the lawsuit should be dismissed against the manager for lack of standing and sought to recover AED 86,000 in customs duties previously paid by the company for the vehicle.
The representative also demanded AED 100,000 in damages for alleged harm to the company's reputation due to the father’s purported defamation on social media.
The legal counsel for the defendants asserted that the company had fulfilled its obligations by providing the vehicle and paying the necessary customs duties of AED 86,469, inclusive of VAT.
However, when the company sought reimbursement of these duties, the plaintiff reportedly communicated via WhatsApp, expressing a desire not to proceed with the purchase without settling the import fees, thereby hindering the company's ability to sell the vehicle to other buyers and resulting in lost profits.
In response to the situation, the manager felt compelled to file a criminal report against the father, alleging defamatory remarks that tarnished the company’s reputation.
The court ordered a forensic expert to evaluate the situation before reaching a verdict.
The expert concluded that the relationship between the parties was based on a verbal agreement for the sale of the vehicle.
The findings indicated that the plaintiffs had adhered to their obligations by remitting AED 700,000 as documented, while the dealership failed to provide evidence of delivering the vehicle, violating their agreement with the buyers.
The expert's analysis further noted that the dealership's demand for customs fees was unwarranted, affirming that the dealership owed the plaintiffs the total sum paid for the undelivered vehicle.
Following the court’s examination of the case and based on the expert findings, the court ruled against accepting the counterclaim directed at the manager while ordering the dealership to reimburse the plaintiffs AED 700,000 plus legal interest, simultaneously dismissing the counter lawsuit.
The client, who sought to register the car under his father's name, was dismayed to find that the vehicle was unavailable.
After unsuccessful attempts at amicable resolution, he filed a lawsuit against the company's manager.
The company's director, a European national, responded by filing a criminal complaint alleging defamation against the plaintiff through social media platforms and accused him of fraud.
Additionally, he launched a counter civil lawsuit.
However, the court ruled in favor of the plaintiff, acknowledging his right to the funds paid to the dealership.
The plaintiff initiated civil proceedings against the used car dealership and its manager, claiming AED 700,000 based on a verbal agreement made between him, his father, and the manager to purchase a luxury car for the specified amount, with assurances of timely delivery.
According to the plaintiff, he paid the amount in installments via bank transfers and received a receipt issued in his father's name from the dealership's manager.
Upon arriving at the dealership on the agreed-upon date to collect the vehicle, he found its premises deserted.
Subsequent contact with the manager yielded no results, compelling the plaintiff and his father to pursue legal action.
They presented evidence including bank transfer records and other documents to support their case.
The legal representative for the defendants contended that the lawsuit should be dismissed against the manager for lack of standing and sought to recover AED 86,000 in customs duties previously paid by the company for the vehicle.
The representative also demanded AED 100,000 in damages for alleged harm to the company's reputation due to the father’s purported defamation on social media.
The legal counsel for the defendants asserted that the company had fulfilled its obligations by providing the vehicle and paying the necessary customs duties of AED 86,469, inclusive of VAT.
However, when the company sought reimbursement of these duties, the plaintiff reportedly communicated via WhatsApp, expressing a desire not to proceed with the purchase without settling the import fees, thereby hindering the company's ability to sell the vehicle to other buyers and resulting in lost profits.
In response to the situation, the manager felt compelled to file a criminal report against the father, alleging defamatory remarks that tarnished the company’s reputation.
The court ordered a forensic expert to evaluate the situation before reaching a verdict.
The expert concluded that the relationship between the parties was based on a verbal agreement for the sale of the vehicle.
The findings indicated that the plaintiffs had adhered to their obligations by remitting AED 700,000 as documented, while the dealership failed to provide evidence of delivering the vehicle, violating their agreement with the buyers.
The expert's analysis further noted that the dealership's demand for customs fees was unwarranted, affirming that the dealership owed the plaintiffs the total sum paid for the undelivered vehicle.
Following the court’s examination of the case and based on the expert findings, the court ruled against accepting the counterclaim directed at the manager while ordering the dealership to reimburse the plaintiffs AED 700,000 plus legal interest, simultaneously dismissing the counter lawsuit.
