Investor awarded $132,643 in Damac case

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Almost half a million dirhams has been won by an investor against developer Damac Properties for anticipated breach of contract ruling over the Executive Bay project.

Last week, CW reported that an investor had successfully won money following a ruling that the expected delay of delivery of their unit in the Business Bay tower, currently under construction, should grant them the return of their initial investment plus costs.

Though the project is scheduled to be handed over in April next year, the judge favoured the plaintiff on ground of an inordinate delay in construction because as at January 2011, the construction level was only 13% and therefore, could not be completed by April 2012.

This week, CW can exclusively reveal that the amount won by the investor, named as Bin Murshed Holding, totalled AED 487,220 ($132,643), the sum of AED 410,220 plus 5% interest from 22 March 2009 till date of actual payment, court fees and appeal fees.

However, the case is currently in the Court of Appeal. It is only if Damac Properties is unsuccessful in its appeal that the case would go to so-called execution proceedings and the payment would have to be made.

The suit against Damac Properties revolves around a single unit and has acted as a litmus test for the company to appeal the other six units that it had bought, in separate agreements, with the developer, dated 26 March 2008.

“The claimant had altogether paid AED26,653,000 ($7,256, 267) towards the purchase of seven units,” Fareya Azfar, partner at plaintiff law firm The Legal Group, wrote in a statement.

Damac last week claimed that construction of the tower was still ongoing.