Limitless drops US$2.5m claim against employee

The developer, which is a
subsidiary of government-backed Dubai World, sued Abdulla Ali
Abdulla Al Janahi in the Dubai World Tribunal in order to reclaim the cost of
building an apartment block at the International City development.

Al Janahi, executive director of
corporate operations at Limitless, was one of 28 employees awarded undeveloped
plots of land in 2004 by HH Sheikh Mohammed bin Rashid Al Maktoum as a reward
for good performance.

Two years later, in a meeting
with then Dubai World chairman Sultan bin Sulayem, the 28 employees requested
Limitless build apartment blocks on the undeveloped land.

According to Limitless’s claim
documents, the developer agreed to subsidise 50 percent of the construction
costs and each block would contain 42 residential and retail units, which the
employees could generate rental revenue from.

With the onset of the property
downturn in Dubai’s real estate sector, the employees were unable to secure
financing to repay their 50 percent share of the construction costs.

Court documents further claimed
the employees wrote to Limitless in September 2008, the height of the
property crash, asking for construction costs to be waived in whole or in part,
or for financing to be arranged for them by Dubai World

In May 2009, Dubai World handed
over the apartment blocks to the employees to allow them to rent out the units
and repay the construction costs.

It was estimated each block would generate
AED2m per annum and each employee would forward AED1.5m of this to Limitless.

While some of the 28 employees
repaid the construction costs owned to Limitless, some, including the defendant
Al Janahi, could not agree terms with the developer, leading to the hearing in
the Dubai World Tribunal.

“The case has been discontinued,
and Limitless has no further comment,” a spokesperson said on Monday of the
developer’s decision to abandon the case.

Limitless had sought AED9.46m in payment from Al Janahi, plus costs and interest of
AED1.93m.