Damac in US $132 million lawsuit

A German investor has slapped Damac Properties with a lawsuit that could cost the firm upto US $132 million (AED485 million) in damages.

Lothar Hardte, who sunk close to US $36 million (AED100 million) into properties from Damac, filed a suit against the firm citing a breach of contract in the form of delays, misrepresentation of properties, fraud and improper use of funds, according to local tabloid 7days.

He also said he is going to pursue the case and be the “spearhead” for those people who have had similar experiences with Damac.

“First I am hoping that I will regain my money and the second thing is, while I have been negotiating with Damac I've seen so many people in the situation where all the money they had was in one apartment and they stand to lose it all... so I see myself also as being the spearhead for these people,” he was quoted as saying.

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When contacted by CW, a spokesperson for Damac refused to comment saying, “It would be inappropriate for us to make any comment on this case as it is now subjudice and being dealt with by the appropriate authorities.”

Hardte has invested in Lotus Residences and Water's Edge in Business Bay, Park Towers at DIFC, Wildflower in Jumeirah Golf Estates and Ocean Heights in Dubai Marina.

It was then reported that Damac attempted to stop the lawsuit from being heard in the Dubai International Financial Centre (DIFC) courts.

But Hardte said he filed the suit with the DIFC Courts because Park Towers is located at DIFC and Damac is a DIFC-listed company.

Ludmila Yamalova, a partner at Al Sayyah Advocates and Legal Consultants, which is handling the suit, told the newspaper that the reason for the move on Damac’s part was due to the fact that DIFC operates under British law, which has had more experience of property disputes in comparison with Dubai law.

But Hardte had filed five motions in response to Damac, including a motion for judgment by default and an award of damages of over $132 million because Damac failed to support its motion with proper statements and failed to file its defence, and defences for individuals named in the case, on time.

The case will be heard at DIFC Courts later this month.