No repayment from failed Abu Dhabi development, despite court order

Abu Dhabi couple, who won court case against an Abu Dhabi developer that failed to build the properties they had invested in, should fight on.

In 2008, my husband and I invested in some off-plan hotel-serviced apartments with a major developer based in Abu Dhabi. Unfortunately the developer decided not to go ahead with the project, building normal residential towers instead. The developer would not offer compensation or any refund to us, so we had no choice but to take legal action. Four years ago we won our case in the Abu Dhabi courts, which then gave an execution order for the developer to pay back our money. Four years on we still have not received a dime and the developer is still operating and has now finished building some of these residential towers on Al Reem island. Our lawyer based in Abu Dhabi is no longer pursuing the matter and is not replying to our phone calls or emails. I have been in touch with others in a similar situation who also won their court case but have not received any money back. The amount of money owed to us is substantial. What can I do now to enforce the court's execution order? MD, Abu Dhabi

The expert advice

Ben Crompton, a managing partner at Crompton Partners estate agency

MD, sadly this is an all too familiar story across the world. You think you’ve done the hard work and got a judgment in court in your favour and the rest should follow. But sadly too many companies feel they can take their time in honouring the judgments made against them.

I have three suggestions for your predicament. The first is go back to the court that made the order and ask for an “attachment order” against the developer. If that doesn’t make them pay up then the court is empowered to make an order for selling the debtor’s assets by public auction and order their banks to transfer money to court in satisfaction of the debt to you.

Now I understand you’re having trouble contacting your lawyers. Phone and email can sometimes be a foreign concept for some in Abu Dhabi, where a face-to-face chat and a coffee are more familiar ground. Take a day and visit your lawyers in the capital. If you still have trouble with your legal counsel then contact a lawyer in Dubai. You can ask the Dubai courts to enforce judgments made by an Abu Dhabi judge in exactly the same way you would for a Dubai judgment.

Second, you can take your enforcement order to the Abu Dhabi Police, who do sometimes get involved in civil disputes such as these. It is a powerful incentive for firms to settle up when the chief has an officer standing over his desk.

Third, if you can’t get the UAE courts to enforce then look abroad. Several countries have reciprocal enforcement agreements where the courts in one country (such as the United States or United Kingdom) will enforce the judgments made in another. The US is particularly aggressive here. Good luck.

The reader’s advice

Anthony Smithson, Dubai

The trick here is to be persistent. While I don’t have any experience of this in Abu Dhabi, I did have issues with a Dubai developer. I invested in an off-plan villa at the beginning of 2008 when the property market was at its most buoyant. Investing seemed the only sensible thing to do to avoid sky-high rents. But then the financial crisis struck, and I was left with hefty repayments and no sign of a home. I used to drive past the plot number of my property on a monthly basis, gazing at the ghostly remnants (it was partially built) of what would have been my home. I also phoned and emailed the developer every week, something my fellow investors did as well. Although the upturn in the economy was largely responsible for the project restarting (I finally moved my family into the villa in February last year), I feel my persistent calls and messages helped. You should keep making a big song and dance about this. In the end some action will be taken to make you go away.

The next money clinic:

I am a keen artist and think that adding art to my investment portfolio would be a good move, particularly if I can have that investment hanging on the wall in my own home. But where does someone living in the UAE start? And how can I guarantee a good return? PD, Dubai

Every three weeks The National features a reader’s personal finance problem. If you have an issue or would like to suggest a solution for another’s reader’s concern, write to [e-mail]

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