Judicare Group lawyers in the United Arab Emirates have won a landmark ruling on a succession of 35 cases against a UAE based developer, who failed to construct a residential property project despite receiving advanced deposits estimated to be in the region of £50 million.
Following legal action by Judicare’s lead counsel (Middle East) Mr Ashraf El Motei, the Arbitration Courts of Ras al Khaimah (UAE) ordered the cancellation of the SPAs (Sales and Purchase Agreements), a refund of all monies paid under those agreements to the developer plus interest, compensatory amounts and all legal fees paid by the claimants.
In his defence, the developer had claimed that the Government’s failure to supply electricity at the site was a Force Majeure position, which prevented the construction process and justified non-delivery of the properties to the buyers. Judicare argued that this did not provide a legally reliable defence and should be dismissed.
Non-delivery of property
“Clearly this is good news for our clients and is a warning to developers in the UAE who attempt to frustrate purchasers seeking reimbursement of invested monies for non-delivery of property, especially if they rely on an inaccurate Force Majeure argument,” says Neil Heaney, CEO of Judicare Group.
“It is a hugely positive sign for any and all investors who find themselves caught in this particular situation and who may be contemplating a challenge for legal redress and the return of their invested funds,” he adds.
Judicare is currently in the process of identifying and seizing all assets of Khoie Properties, which was contracted to build the La Hoya Bay Residences, a 1000+ unit resort style development in Ras-al-Khaimah, on the man-made island of Marjan. From 2005 to 2008, the developer took an estimated £50 million in deposits from over 700 buyers – the project today remains in a state of disarray and is incomplete.
Solely on behalf of buyers
When it was evident that construction was not taking place, Judicare was appointed to represent them and currently represents 35 of the investors worldwide in the recovery of over £1.5M.
Judicare Group is an international legal firm providing a wide range of legal services such as conveyancing and commercial litigation on, and specialising in, property investment recovery. In this role it works solely on behalf of buyers (not developers or agents) helping them to seek compensation in the event of problems with the purchase of a property overseas.
The company has a network of lawyers around the world and currently has client cases in fourteen international jurisdictions Bulgaria, Brazil, Cape Verde, Cyprus, Dominican Republic, Egypt, Greece, Morocco, Poland, Portugal, Spain, Turkey, Turks & Caicos Islands and The United Arab Emirates.
For more information, go on-line at: www.judicaregroup.com