Top Dubai Court Halts Ruling on Ford Agency Contract
The Dubai Court of Cassation Saturday suspended an earlier judgement by the Dubai Court of Appeal on the Ford Motor Co versus the Galadari Automobile Co case, Gulf News reported Sunday.
In its November 26 ruling, the Dubai Court of Appeal ruled that Ford could terminate its agency contract with the Dubai company and that Galadari Automobile Co could not claim damages from FMC, the paper said.
According to Sameer Jaafar, the lawyer representing Galadari Automobile Co. Ltd in the final phase of the litigation, the implementation of the appeal court judgment would have made the verdict final, Khaleej Times reported. To prevent that from happening a request was made for a stay of execution, pending a Cassation Court ruling.
Jaafar said, "at first the Court of First Instance dismissed suits filed by Ford Motor Company and Galadari Automobiles Co. Ltd as the papers they presented to the court lacked a trade agency contract from the Trade Agents Registrar at the UAE Ministry of Economy and Commerce.
"After the case was presented again to the Appeals Court and an expert was assigned to make assessments, the Appeals Court issued its ruling ordering the commercial agency agreement between Galadari Automobiles and Ford Motor Company terminated, whereas it should have referred the case to the Court of First Instance for a ruling."
In a counter-suit filed against Ford Motor Company, Galadari Automobiles sought the court's intervention to make Ford pay Dh30 million with an interest component of 12 percent for the losses incurred. The appeal was made for a stay of execution order early in January – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)