Court dismisses Dubai store’s bid to end lease citing losses during pandemic

Aholding company has won a legal dispute against a convenience store that sought to terminate a Dh1.3m annual leasecontract citing financial losses due to Covid-19.

The supermarket had on July 20 of last year submitted a application with the Dubai Rental Disputes Centre to terminate a five-year contract expiring this coming July.

It also requested that the holding company repay an insurance deposit of Dh62,000; grant permission to obtain a no-liability letter from the Dubai Electricity and Water Authority; and hand over a Dh1.3 million-cheque in rent covering the contract’s fifth year.

“The supermarket remained operational during closures enforced by the outbreak and its business wasn’t affected like other outlets,” said International Partner Litigation and Dispute Resolution at Charles Russel Speechlys law firm Ghassan El Daye which represents the holding company.

Following Ghassan’s argument during the online hearing, an arbitrator was tasked by Dubai’s Rental Disputes Centre to assess the supermarket’s business. The arbitrator’s findings proved the supermarket — part of a chain — was not affected by government-ordered closures issued to stem spread of the virus.

“The judicial bench’s members decided the pandemic could not be considered an uncommon circumstance that inflicted losses on the claimant,” said El Daye. “Their case was dismissed and demands rejected, following which they filed an appeal.”

Appeals Chief Judge Abdul Kader Moussa was told the contract can only be terminated based on an agreement or amicable settlement between the litigants.