Heirs of Canadian businessman sue a bank in Dubai for mismanaging deceased's account

The Dubai Court of First Instance heard a civil lawsuit filed by the heirs of a deceased Canadian businessman against a local bank, accusing the bank of mismanaging the estate and withholding tens of millions of dirhams in violation of banking regulations and the orders of the Dubai Probate Court.

The heirs (the deceased’s brother and two sisters) filed the case before the Dubai Commercial Court, alleging that the bank conducted unauthorised financial transactions in the deceased’s accounts after his death in October 2020.

The heirs demanded the recovery of Dhs76.9 million, in addition to interest and compensation, asserting that they discovered significant violations in the bank’s handling of their brother’s accounts while initiating procedures to retrieve the estate assets.

A report by an accounting expert appointed by the heirs highlighted several breaches, most notably bank transfers executed after the date of death, despite official notification of the man’s death.

The report revealed that the bank disposed of Dhs110 million, in addition to unauthorised bank transfers and cheques from the deceased’s account.

Additionally, the estate administrator’s report noted that some of the assets may not be directly registered in the deceased’s name, and the bank has not officially acknowledged them, in clear violation of banking regulations and fiduciary duties.

Lawyer Awatif Shawqi, the legal representative of the heirs, stated that the bank was officially notified of the businessman’s death in late October 2020, but it continued to execute financial transactions without authorisation from the competent court.

Shawqi added that the unauthorised transfers exceeded Dhs18.7 million, in addition to cheques withdrawals totaling approximately Dhs3.7 million.

The bank also froze Dhs87 million as bank guarantees for two years without valid claims.

Shawqi requested the court to compel the bank to submit all documents related to the deceased’s accounts, investments, and transactions, and to conduct a comprehensive financial audit to determine the full impact on the estate.

The lawsuit included documents indicating that the bank failed to disclose deposits and investment portfolios belonging to the deceased, despite his substantial investments during his lifetime in projects and portfolios managed by the bank.