Dubai court dismisses Meydan appeal

01 August 2018
Local developer was appealing a court ruling rejecting its $945m civil suit against contracting joint venture of WCT and Arabtec

Malaysian contractor WCT says that Dubai’s Civil Court of Cassation dismissed local developer Meydan’s appeal of a 2013 court ruling rejecting its AED3.5bn ($954m) civil suit against the joint venture (JV) of WCT and local contractor Arabtec Construction related to the Nad al-Sheba racecourse grandstand project in Dubai.

In February 2013, The Dubai Court of First Instance dismissed the civil suit in view of the pending arbitration in Dubai International Arbitration Centre and in view of the binding arbitration agreement between the WCT/Arabtec joint venture and Meydan. Then in March 2013, the developer filed an appeal to the Dubai Court of Appeal against the decision of the Dubai Court of First Instance.

WCT says that it has been advised that the Court of Cassation is the highest civil appeal court in Dubai and the civil suit is therefore now concluded, adding that its efforts to enforce the arbitration ruling made in its favour in 2015 remain ongoing.

In January 2009, Meydan cancelled WCT/Arabtec’s contract for the construction of Nad al-Sheba Racecourse.

Arbitration proceedings then followed and In July 2015, WCT said that it had received the final award for the Tribunal. The Tribunal found that Meydan’s cancellation and purported termination of the DRC Contract was unlawful, invalid and of no effect; and that Meydan was not entitled to call on the JV’s Performance Bond and must repay the same. The Tribunal then ordered Meydan to pay WCT a total of AED1.153bn.

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