Dubai court orders man, company to pay law firm Dhs8.64 million

Dubai Civil Court ordered a man and a company jointly to pay a law firm Dhs8.64 million, representing fees and expenses due under an agreement concluded between the parties and the firm, in addition to an annual interest of 5% from the date of the legal claim until full payment, as well as court fees, costs, and attorneys’ fees.

In detail, a lawyer filed a lawsuit against a man and a company, seeking an order requiring them jointly to pay Dhs8.64 million, based on a fee agreement concluded in July 2023, under which the appellees tasked the law firm with  handling legal proceedings and filing a commercial lawsuit seeking amounts and compensation, in return for the firm receiving 25% of the amounts collected or the settlement as legal fees.

According to the case file, the firm commenced the agreed procedures and carried out all the tasks assigned to it under the agreement. These resulted in the collection of Dhs31 million for the clients, which was transferred to their account in May 2026.

When the firm demanded its agreed fee, 25% of the amount collected, equivalent to Dhs7.753 million, plus value-added tax, in addition to court fees and expenses paid by the firm on behalf of the appelees, bringing the total claim to Dhs8.641 million, the appellees refused and argued that the lawsuit should be dismissed because the legally prescribed route for claiming fees had not been followed.

The court rejected the appellees’ arguments, affirming that there was a written fee agreement, which gave the Court of First Instance jurisdiction to hear the claim under the usual procedures, and that the firm had completed the agreed work and was therefore entitled to the fees specified in the contract.

The court also explained that a banking obstacle preventing the company from disposing of the amount transferred to its account did not affect the firm’s entitlement to its fees.

The court further established that the first appellee had signed the agreement in his capacity as a personal guarantor, who had undertaken to pay the fees. The court also concluded that both appellees were jointly liable for the amount due and ordered them to pay Dhs8.64 million, representing fees and expenses due under an agreement concluded between the parties and the firm, in addition to an annual interest of 5% from the date of the legal claim until full payment, as well as court fees, costs, and attorneys’ fees.