UAE Court Obliges a young man to Pay 54,740 AED in 295-Day Car Rental Dispute
A legal dispute between a car rental company and a young man who refused to pay the remaining rent and traffic violation costs for a vehicle he rented has been resolved according to a recent verdict by the Abu Dhabi Commercial Court of First Instance.
The defendant is bound by the court's ruling, which clarifies important details of the case.
Legal Proceedings:
The vehicle rental firm filed a lawsuit against the defendant, requesting 54,240 dirhams in addition to 2,000 dirhams in damages. The action demanded payment from the defendant for fees, expenses, and legal costs, along with an annual interest rate of five percent on the amount that was past due. The defendant's extended use of a rental car for 295 days without paying the unpaid rent or foregoing any driving infractions during that time was the central issue in this case.
Lease Contract Analysis:
Delving into the lease agreement, the court established that the defendant's total rent obligation was 88,500 dirhams, with only 36,660 dirhams having been paid. This left an outstanding balance of 51,840 dirhams. Notably, the defendant failed to present any plea or defense, neglecting to prove payment of the remaining dues or contest the traffic violations totaling 2,400 dirhams.
Liability and Compensation Decision:
Considering the unpaid rent, traffic violations, and compensation for damages, the court ruled in favor of the car rental company. The defendant is now obligated to pay the principal amount of 54,240 dirhams, with a 5% annual interest on the overdue sum. Furthermore, the court mandated a compensation payment of 500 dirhams for damages incurred by the plaintiff. However, other requests made by both parties were dismissed, underscoring the court's comprehensive examination of the evidence and legal intricacies entwined in the case.
This court ruling not only resolves the immediate dispute between the car rental company and the defendant but also highlights the importance of adherence to contractual obligations and the legal consequences of failing to address financial responsibilities in the context of rental agreements.
