Horizons & Co Secured Landmark Victory Before Dubai Court Of Cassation In AED 248.5 Million Dispute

Horizons & Co secured landmark victory before Dubai Court of Cassation in AED 248.5 million dispute

The leading Emirati law firm, Horizons & Co Law Firm secured a significant victory before the Dubai Court of Cassation, successfully defending a major real estate developer in a high-value dispute exceeding AED 248 million. The case involved complex legal and contractual issues relating to assignment of rights in construction projects. The firm’s strategic defence resulted in a final judgment dismissing the claim in its entirety, reaffirming key legal principles governing contractual restrictions and consent.

Case Background

Dubai, UAE: Horizons & Co Law Firm secured a final judgment before the Dubai Court of Cassation dismissing all claims brought against its client, a major real estate developer, in proceedings where a commercial bank sought to recover AED 248,550,000 directly from the project owner.

The bank's case was based on an alleged assignment of the contractor's rights and receivables under a large-scale construction project. It argued that such assignment entitled it to step into the contractor’s position and pursue the developer for outstanding dues.

Key Legal Issue

The construction contract expressly prohibited the contractor from assigning its receivables without the owner’s prior written consent. However, such approval was neither sought nor granted.

The dispute centered on whether the alleged assignment could bind the developer in the absence of its consent, and whether conduct such as partial payments or silence could amount to implied acceptance.

Defence Strategy

The Horizons & Co litigation team dismantled the bank’s claims by demonstrating that no express or implied consent had been provided by the developer. It was established that routine payments made during the project execution and the developer’s silence could not be construed as acceptance of the assignment.

The team further challenged the validity of the notification relied upon by the bank, highlighting that it had been addressed to the project consultant rather than the developer. It was successfully argued that the consultant lacked the authority to accept or acknowledge any assignment on behalf of the developer.

Additionally, reliance placed by the bank on a prior judgment was rejected, as the earlier decision dealt only with arbitration-related issues and did not address the enforceability of the assignment.

Court’s Findings

The Court of Cassation upheld that an assignment restricted by contract cannot take effect against a debtor without its explicit consent. It further clarified that silence, general awareness of the assignment, or subsequent conduct are insufficient to establish implied acceptance.

Legal Team

The Horizons & Co team was led by Ali Al Zarooni (Managing Partner) and Refat Zidan (Head of Litigation), with support from Tania Antoun (Senior Associate).

Ali Al Zarooni commented that the judgment significantly contributes to the legal framework governing assignments in construction projects and reinforces the importance of consent provisions in contracts.

Conclusion

This ruling serves as an important precedent in construction and commercial law, emphasizing that contractual restrictions on assignment must be strictly upheld. It highlights the necessity for lenders and contractors to secure explicit consent before enforcing assigned rights, thereby strengthening legal certainty in high-value infrastructure and real estate transactions.

Click to know more about Horizons & Co

If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at info@legalera.in or call us on +91 8879634922.