Dubai court obligates customs broker to repay Dhs40,000 to company

A customs broker was given Dhs40,000 by a company to cover fees and clear goods at a seaport. However, he failed to complete the transactions or return the money. The Dubai Civil Court ruled that he must refund the amount with 5% interest from the date of the lawsuit until full payment, plus associated fees and expences.

The dispute originated from a transaction between a general trading company and the broker. The company tasked the broker with completing customs clearance for its goods, paying him Dhs40,000 upfront, as documented by a payment voucher dated December 2022. Despite repeated demands, the company reported that the transactions were incomplete and it didn't receive any related documents.

The court assigned an expert to analyse the relationship and accounts between both parties. The expert's report confirmed that the broker had received the Dhs40,000, based on evidence from the payment voucher, electronic communications, and WhatsApp messages exchanged between them.

The report clarified that the defendant did not provide any documentation to confirm the execution of the agreed-upon services or the delivery of customs clearance documents to the company. Additionally, there was no evidence to show repayment of the funds or that they were used as intended. After finalizing the accounts between the parties, the expert determined that the defendant owed Dhs40,000.

Despite receiving legal notice, the defendant did not attend the proceedings. Nevertheless, the court found the expert's report convincing, highlighting that it is the creditor's responsibility to prove indebtedness, while the debtor must prove its discharge. The court also emphasized its right to accept the expert's findings if satisfied with their thoroughness and supporting evidence.

The court affirmed that the documents clearly indicate the funds were given to the defendant for settling customs duties and completing clearance procedures. Since the defendant did not prove they fulfilled these obligations or returned the funds, those funds must be reimbursed to the company.