Pay Dh7m for falcon hotel design, even if not built: Dubai Court

The absence of a contract between a property owner and an engineering firm concerning fees does not preclude the landlord from payment of fees, as long as implementation of projects was agreed on, the Dubai Court of Cassation has ruled.

The court confirmed that proof of an agreement can be proved by other means – such as a witness’ testimony or taking of an oath.

The court ruled that the value of these fees can be estimated according to legal precedent, and in case there were no similar examples, the judge can estimate the same according to the standardised engineering contract of the consultancy.

The court also asserted that failure of the landlord to get official permits required for the project does not preclude him from the obligation of payment of fees to the engineering firm, as long drawings and designs were agreed on.

The Dubai Court of Cassation made the rulings in a case where an engineering firm which asked the court to compel the landlord to pay Dh7,508,000 for the design of two towers to be used as hotel and commercial offices.