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Commercial Dispute - AED 45 Million Settlement

Corporate Law

Commercial dispute resolution team celebrating victory in Dubai
Amount Involved: AED 45,000,000

The Problem

Our client, a Dubai-based trading company, was sued by a former business partner for AED 45 million alleging breach of a supply agreement. The partner claimed our client failed to deliver goods worth the claimed amount and sought full damages plus interest. The case threatened to bankrupt our client business and damage their reputation in the market.

What We Did

Our corporate litigation team conducted a thorough document review and discovered that the supply agreement contained ambiguous delivery terms that had been misinterpreted by the claimant. We engaged forensic accountants to audit all transactions and found that the actual undelivered goods were valued at less than AED 3 million. We filed a comprehensive defense challenging the quantum of damages and initiated a counterclaim for defamation. Simultaneously, we pursued mediation through DIAC to avoid prolonged litigation.

The Result

The arbitration tribunal ruled in our client favor, dismissing 90% of the claimant demands. The final award required our client to pay only AED 2.8 million - a 94% reduction from the original claim. The tribunal also awarded our client AED 500,000 in legal costs. The case was resolved within 8 months, preserving our client business and market reputation.

Final Outcome: Case Dismissed (94% Reduction)

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