The Ras Al Khaimah Court of First Instance, the General Commercial Department, obligated a defendant (an Arab national) to pay the plaintiff, the owner of a food trading company, 150,000 dirhams, comprehensive compensation for material and moral damages incurred by the plaintiff, as a result of the defendant’s imprisonment of the plaintiff’s money without a legitimate reason, and the failure to Pay his share of the company’s profits.
In detail, the plaintiff stated in the lawsuit statement that he had concluded a contract with the defendant to invest the company alone in accordance with the terms of the contract, and the defendant received the company after inventorying its assets of foodstuffs at a value of 87,724 dirhams, in addition to a 5% tax paid by the plaintiff, and 13,500 dirhams in value. A bus received by the defendant from the plaintiff.
He explained that the defendant had left the company’s management, and it was found that he had established another company for himself, and was practicing his work with the merchants and customers of the plaintiff’s company with its invoices for the account of his own company.
He pointed out that the defendant seized the company’s money during his investment period, squandered its capital and profits, and was spending on his family from the plaintiff’s company’s income, without recording the amounts as a debt to the company, which caused the plaintiff losses resulting from the defendant’s failure to fulfill his obligations, and the profit that she missed. , and the loss it causes.
In the lawsuit, the plaintiff demanded the assignment of an expert to indicate the extent to which the defendant has implemented his obligations stipulated in the investment contract, the amounts, foodstuffs and assets in the company that the defendant received, the calculation of the amounts owed by him, the company’s profits during the investment period, the plaintiff’s rights from them, and a statement of losses and the damages he caused, in addition to collecting aspects of the relationship between them, with obligating him to pay fees, expenses and attorney fees.
The expert’s report stated that the company does not maintain regular accounts, and does not use any system related to books and paper documents, nor electronic programs to keep financial data that is not supported by supporting documents, and that it is not possible to rely on the validity of such data or to ensure its completeness.
The report pointed out that it was not possible to know the total value of revenues, and the volume of commercial transactions from the period of investment in the company until filing a lawsuit.
In its ruling, the court confirmed that it was proven to the court that the defendant had breached his obligations of properly managing the company during the period of his investment in it, as it was proven that he did not keep regular accounting books, and did not pay the plaintiff his share of the profits achieved by the company during the period of his investment in the company, which is estimated by the court. At 105,729 dirhams and 50 fils.
She explained that the defendant withholding the plaintiff’s money without a legitimate reason presumed, by necessity, that material and moral damage would be available to the plaintiff, pointing out that the material damage represented in missing the opportunity to achieve gain from benefiting from this money at the time it was due, and the moral damage represented in the plaintiff feeling distress and pain as a result of depriving him of His money, as well as mismanagement of the company and the defendant’s breach of the contract, and then the doer of this damage must be obligated to guarantee him in proportion to the harm suffered by the aggrieved party and the loss of earnings.
She added that the court estimates the comprehensive reparation compensation for the damages proven to the court and reported by the expert, including the profits estimated by the expert, at 150,000 dirhams, and obliges the defendant to pay it to the plaintiff as compensation for material and moral damages, and obligates him to pay expenses and attorneys’ fees.