UAE: Showroom ordered to pay Dh83,000 after selling customer's car without paying

A car showroom has been ordered to return Dh68,000 to a customer, along with an additional Dh15,000 in compensation. A ruling from the Al Ain Court for Civil, Commercial, and Administrative Claims came after the showroom sold the customer’s car, which had been given to them in trust, but failed to hand over the sale proceeds.

The customer had given his car to the showroom under an agreement to sell it. He was asked to transfer the vehicle's ownership to the showroom to facilitate the sale process. The customer agreed, but after the sale was completed, the showroom did not pay him the agreed amount.

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The owner filed a lawsuit against the showroom, requesting the court to compel it to pay Dh68,000 for the sale price along with 9 per cent annual interest from the date of the claim until full payment. He also demanded Dh30,000 in compensation for material and moral damages, in addition to legal fees and court expenses, according to Al Khaleej local newspaper.

In his complaint, the plaintiff explained that he had agreed with the showroom to leave the car in their custody for sale at the best possible price. After some time, the showroom informed him that a buyer had been found and that the agreed price was Dh68,000, which the customer accepted.

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Later, the showroom told him the buyer wanted to apply for bank financing, which required transferring ownership to the showroom. The customer cooperated and used his digital ID to complete the transfer of ownership.

However, despite completing the sale and receiving the money from the buyer, the showroom stalled payment and refused to transfer the amount to the original owner. This prompted the customer to take legal action.

The court reviewed the evidence and found that the showroom had failed to fulfil its obligation. It ruled in favour of the claimant, ordering the payment of Dh68,000 and an additional Dh15,000 as compensation for the financial and emotional harm suffered.

• Abu Dhabi

Azza Al Ali

Azza Al Ali is a reporter from Ras Al Khaimah, dedicated to sharing stories that bring the community...Read More

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