Court denies tenant’s AED 275,000 claim for eviction compensation against the landlord

WHAT HAPPENED?

The Plaintiff initiated legal proceedings against the Defendant before the Rental Disputes Committee (RDC) on January 16, 2024. The Plaintiff seeks a ruling obligating the Defendant to compensate him in the amount of AED 275,000 for damages and losses incurred due to the Defendant’s actions.

Specifically, the Plaintiff asserts that the Defendant, under the pretext of selling the property, issued a Notary Notice through the Notary Public, compelling the Plaintiff to vacate the property. However, instead of proceeding with the sale, the Defendant subsequently leased the property to another tenant.

The Plaintiff had rented the property (a villa) under a lease agreement valued at AED 152,250 annually, commencing on October 1, 2022, and concluding on September 30, 2023. On October 30, 2022, the Defendant issued a Notary Notice to the Plaintiff, instructing him to vacate the property for the alleged purpose of selling it. The Plaintiff complied and vacated the property. However, contrary to the claims made in the Notary Notice, the Defendant did not sell the property. Instead, the Defendant entered into a new lease agreement for the property with another tenant for the period from July 27, 2023, to June 26, 2024, at an annual rent of AED 275,000.

As a result of these actions, the Plaintiff and his family have suffered significant damages.


WHAT WAS DECIDED?

The Court of First Instance rendered a judgment dismissing the Plaintiff’s case. The Court’s decision was predicated on the finding that the primary reason for the Plaintiff vacating the property was the mutual agreement between the Plaintiff and the Defendant regarding the Plaintiff’s intention to vacate the property prior to the expiration of the lease agreement. This decision was not based on the Notary Notice issued by the Defendant for the purpose of selling the property. Consequently, the Plaintiff’s claim for compensation was deemed to lack a factual or legal basis.

Subsequently, the Plaintiff appealed the judgment of the Court of First Instance. However, the Court of Appeal dismissed the appeal and upheld the lower court’s judgment. The Court of Appeal concluded that the Plaintiff himself requested the eviction and paid early termination fees, thereby confirming the Appellant’s intent to vacate the property voluntarily.


WHY IT’S SIGNIFICANT?

This judgment reflects the enforcement of the mutual termination of the tenancy contract prior to its expiration. Consequently, the court denied the tenant’s claim for compensation for eviction, notwithstanding the Notary Notice issued by the Landlord to the Tenant for eviction.