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Sun 1 Mar 2015 01:46 PM

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Owner ordered to pay $1.9m in Dubai project fees dispute

Dubai’s highest court orders unpaid fees to be paid relating to planning and design of falcon-shaped hotel scheme

Owner ordered to pay $1.9m in Dubai project fees dispute

Dubai’s highest court has instructed a property owner to pay AED7 million ($1.9 million) in unpaid fees pertaining to the planning and design of a falcon-shaped hotel scheme in Dubai.

The Emirates24/7 website reported on a Dubai court ruling in which an engineering firm won its case to recoup unpaid fees from a client landlord.

It means that, in future, landlords and developers are obliged to pay fees to engineers that plan and design schemes even if the project is never implemented.

In this case the engineer completed drawings and designs for two 51-storey towers in Business Bay; one comprising a hotel, the other offices, the website reports. The landlord had asked the engineer to design the hotel tower in the shape of a falcon, the court heard.

But the landlord allegedly failed to pay for the work because it did not succeed in winning planning permission for the scheme.

The court at first instance ordered the landlord to pay AED652,000 to the engineering firm. But neither party accepted this ruling and appealed to the Court of Appeal, which rejected the case.

The engineer then appealed to the Court of Cassation, which made the latest ruling that ordered the landlord to pay out AED7 million.

The court based its ruling on interpretation of the Civil Transactions Act, as based on Local Order No. 89 of 1994 regulating the practice of engineering, Emirates247 reports.

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