Convenience shop in Dubai loses court case over Dh1.3m rent refund

Court rejects shop's claim that it suffered financial losses during stay-at-home period in 2020

A Dubai court has granted a retrial to an Emirati man who was convicted of causing his friend’s death in a Shisha fire. AFP

A convenience shop in Dubai has lost a court case to claim a rent refund of Dh1.3 million ($353,930) from its landlord on grounds of lost revenue during the stay-at-home period last year.

An Appeal Court upheld an earlier verdict passed by Dubai Land Department (DLD).

On July 20, 2020, the store filed a case against the holding company which owns the property to prematurely terminate a five-year contract. The rent contract expires in July 2021.

The tenant asked the landlord to return a cheque for Dh1.3m, covering the rental period from July 2020 to July 2021, repay an insurance deposit of Dh62,000 and grant the owner permission to obtain a no-liability letter from Dubai Electricity and Water Authority.

The Rental Dispute Settlement Centre, the judicial arm of the DLD, dismissed the shop's claim and said losses were not due to "exceptional circumstances" during the pandemic.

“The store remained operational during closures enforced by the outbreak and its business wasn’t affected like other outlets,” said lawyer Ghassan El Daye, of Charles Russell Speechlys law firm.

The rent dispute centre appointed an arbitrator to assess the store’s business and he found out that revenues were not affected during the stay-home period.

"The judicial bench members decided that the pandemic could not be considered 'exceptional circumstances' that inflicted losses on the claimant," Mr El Daye said.

The case was dismissed by the centre but the shop filed an appeal.

Appeal Chief Judge Abdul Qader Moussa was told the contract could only be terminated based on an agreement or an amicable settlement between the parties.

“This is because their claim is unfounded, since no orders were issued by authorities forcing the supermarket to shut down,” Mr El Daye said.

On February 9, the shop's appeal was dismissed after the court gave a final verdict. The outlet is part of a convenience store chain.