The Dubai Court’s practice requiring that a separate lawsuit is filed for every contract at issue is a prohibitively expensive practice. Every suit requires a payment to the Court of 7.5% of the contract value or a maximum of Dh. 30,000.00. In most cases, it is Dh 30,000.
So, if the purchaser wants to enforce his rights for 5 units under separate contracts, even if they are with the same developer, he is required to file 5 separate cases and pay Dh150,000.00 in court fees alone. In some cases, the Court requires that the fees are paid per the number of units involved, even if they are all covered by the same contract. This can happen in cases where a purchaser buys the whole floor.
In addition to the hefty court fees, pursuing separate actions is more expensive as it requires more resources. This is not to mention the problem of potentially having inconsistent judgments.
Furthermore, because proceedings in Dubai Courts are in Arabic, all documents have to be translated, thereby resulting in hefty translation fees. Lawyers’ fees are in addition to court fees and translation fees.
Because many investors in Dubai bought multiple units from the same developer, they find it unfair to be forced to break down their claims. They transacted with one party. They made one payment, which was then re-distributed to different units. The units are on the same floor, thereby in the same stage of construction or non-construction. So, effectively, they have one claim against one developer. To be required to file multiple claims under such circumstances is widely perceived as being unjust. This tactic discourages investors from pursuing their claims against developers, thereby allowing developers to avoid liability.
@Emirates24|7
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