Abu Dhabi Court rejects hotel lawsuit over 52,000 AED rental dispute

In a recent legal development, the hotel company's case against a visitor was dismissed by the Abu Dhabi Family, Civil, and Administrative Claims Court.

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The lawsuit aimed to force the visitor to pay 52,757 dirhams in rent. Nevertheless, because of an earlier decision on the subject, the court declared the case inadmissible.

The hotel company had initiated legal proceedings, alleging that the guest failed to fulfil their financial obligation for a six-month room rental period. The company sought payment of the outstanding rent, along with 12% legal interest from the claim date until full settlement, and reimbursement of legal fees. To support its claim, the company provided documentation, including a payment bond and the guest's passport.

In response, the defendant lodged a memorandum challenging the lawsuit's admissibility. Citing a precedent set in the Abu Dhabi Commercial Court, the defendant argued against the legality of the lawsuit.

The court, in its ruling, analyzed the nature of the lawsuit, determining it to be essentially an appeal of a previous commercial performance order that had been invalidated by courts in Abu Dhabi. It was emphasised that the subject matter and grounds of the current lawsuit mirrored those of the prior case. Consequently, the court concluded that both lawsuits shared identical parties, subject matter, and reasons, thus rendering the previous ruling conclusive.

In light of this, the court dismissed the hotel company's lawsuit, citing the principle of res judicata. This legal principle dictates that a matter that has been adjudicated by a competent court and has achieved finality cannot be relitigated. Accordingly, the court found the case to be inadmissible due to the prior ruling on the matter.

As a result of the court's decision, the hotel company was obligated to cover the legal expenses associated with the lawsuit. This ruling underscores the importance of legal precedents and the principle of finality in the judicial process, ensuring consistency and efficiency in the administration of justice.

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