• Real Estate
  • Dubai Courts · Case No. 8566/2026 (Counterclaim: 9625/2026)
  • Represented the Defendant / Counter-Plaintiff
  • Tenancy & Lease Disputes

Landlord’s AED 945K rental claim dismissed, tenant awarded full deposit refund

Ms. F. Al-Rashidi (our client, Defendant/Counter-Plaintiff) vs. Meadow Heights Properties LLC (Plaintiff/Counter-Defendant)
Judgment issued 2026

Outcome

The Court dismissed the landlord’s entire AED 945,000 claim, finding our client had fully performed the settlement agreement and vacated the unit and ordered the landlord to refund the full AED 270,000 security deposit on the counterclaim.

Court's key findings

  • Our client complied fully with the settlement and termination agreement, including vacating and repeatedly requesting a handover inspection
  • The landlord's own failure to inspect or take delivery cannot be used to claim continued tenant occupancy
  • No evidence existed of unit damage full AED 270,000 security deposit refund granted
  • Landlord ordered to bear all court fees and expenses

Rejected

  • Landlord's AED 945,000 claim for remaining rental period unsupported once settlement performance was proven
  • Landlord's argument that tenant failed to follow "standard handover procedure" no such procedure existed in the agreement
  • Landlord's claim of property damage expert found unit condition matched contract inception

Full legal breakdown

The specific UAE articles the court relied on, and how each one applied to this case.

Article 20 Security Deposit (Dubai Tenancy Law No. 26/2007, as amended by Law No. 33/2008)

Authorizes the lessor to collect a deposit to cover maintenance, but obligates full refund at contract expiry.

Application:

Since no damage was proven, our client's entitlement to the full deposit was established.

Articles 133–135 (Civil Procedure Law, Federal Decree-Law No. 42/2022)

Governs allocation of litigation costs the losing party bears fees and expenses.

Application:

Applied against the landlord on the dismissed original claim.

Contractual Bindingness (Pacta Sunt Servanda)

A valid contract governs the parties; neither may unilaterally alter or revoke it without mutual consent or legal grounds.

Application:

The settlement agreement was binding once signed the landlord couldn't retroactively claim breach after our client fully performed.

Lessor's Inaction on Handover (established judicial principle)

A tenant cannot be held liable for continued occupation or rent if they vacated, notified the landlord, and expressed readiness to hand over but the landlord failed to act.

Application:

Directly dismissed the landlord's core claim.

This summary reflects the outcome of this specific matter based on its particular facts and evidence. It does not constitute legal advice and does not guarantee a similar outcome in any other case.

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