Dubai Commercial Court ordered an investment company to pay Dh441,000 in outstanding property management and leasing fees to an asset management company. The court also awarded annual interest of 5 per cent from the date the lawsuit was filed until full settlement, in addition to legal costs and lawyers’ fees.

The dispute arose from a contract signed in June 2021, under which the property management company was appointed to manage a portfolio of properties, lease units and collect rent in return for agreed fees and commissions.

A tripartite agreement was subsequently signed between the parties and a bank, which had provided credit facilities to the property-owning company. The property management company initially sought Dh661,500, claiming it had fulfilled all its contractual obligations but had not received all the agreed payments.

The court appointed an accounting expert to examine the accounts, invoices and contracts. The expert’s report confirmed that the property management company had provided the agreed services and was entitled to the invoiced amounts. After deducting a sum previously paid, the outstanding balance was calculated at Dh441,000.

The court accepted the report and found that the investment company had failed to provide evidence that it had paid the outstanding balance. The judges also stressed that the contract was binding on both parties and that providing the agreed services entitled the company to claim the relevant fees and commissions.

However, the property management company’s request to hold the bank liable for the debt was rejected. The court said the tripartite agreement contained no provision requiring the bank to pay the property management fees or creating joint liability for the claim.

The property-owning company was therefore ordered to pay Dh441,000, together with annual interest of 5 per cent from the date the lawsuit was filed until full settlement.