| 09 Feb 2010 |
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Damac aims to strike out landmark DIFC case
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DAMAC PropertiesDAMAC Properties
has filed a motion to stop an investor's lawsuit being heard in the Dubai International Financial CentreDubai International Financial Centre (DIFCDIFC) courts, and has also moved to strike the case entirely, the lawyer for the investor told 7DAYS yesterday.German investor Lothar Hardte, who has invested in around dhs100 million worth of properties from DamacDamac, filed a suit against the firm in December with the DIFC Courts, alleging breaches of contracts in the form of delays, misrepresentation of properties, fraud and improper use of funds, among other claims.
Hardte has invested in Lotus Residences and Water's Edge in Business Bay, Park Towers at DIFCDIFC, Wildflower in Jumeirah Golf Estates and Ocean Heights in Dubai Marina.
He filed the suit with the DIFC Courts because Park Towers is located at DIFCDIFC and DamacDamac is a DIFCDIFC-listed company.
Ludmila Yamalova, a partner at Al Sayyah Advocates and Legal Consultants, which is handling the suit, previously told 7DAYS that having the case heard at the DIFC Courts has a number of advantages over the Dubai Courts, including the fact that DIFCDIFC
operates under British law, which has had more experience of property disputes in comparison with Dubai law.Yamalova said yesterday that DamacDamac was contesting the jurisdiction of the case and was also moving to strike out the case due to a lack of "reasonable grounds".
However, she said Hardte had filed five motions in response to DamacDamac
, including a motion for judgement by default and an award of damages of over $132 million because DamacDamac failed to support its motion with proper statements and failed to file its defence, and defences for individuals named in the case, on time.The requested damages include actual damages of about $44 million in lost profits and legal expenses, and punitive damages, which can be up to three times the value of actual damages in the DIFC Courts.
The motions of both Hardte and DamacDamac will be heard at DIFC Courts later this month.
Hardte told 7DAYS in January that if DIFC Courts decided jurisdiction belonged with the Dubai Courts, he would still pursue the suit.
I've seen so many people in the situation where all the money they had was in one apartment and they stand to lose it all... so I see myself also as being the spearhead for these people," he said.© 7Days 2010
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Community Comments (2)
Hello,
Can I ask you how much so far you paid to Damac? I have also purchased couple of units from Damac and meantime I have outstanding payment to them. If your project has been cancelled I can purchase your credit with Damac at discounted rate for cash.
Regards
Investor
I totally relate to and support Mr. Hardte claims.
I'm in a situation were the advance payment I made for an apartment in one of Damac's project's in Abu Dhabi back in Feb. 2008 has been lately seized even though they haven't done the piling on the project yet!! Noting that delivery of this project was schedule for early 2011.
Can I ask you how much so far you paid to Damac? I have also...
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