The Dubai Civil Court has issued a landmark ruling in a decades-long family property dispute. The court ordered a Gulf national to pay Dh39.7 million to his brother and sister-in-law for withholding rental income from jointly owned real estate. The Dubai Civil Court decision highlights the importance of accountability and transparency in family-managed property agreements.
The case revolved around multiple shared properties that the defendant had managed alone since the mid-1990s. He collected rent, signed lease contracts, and handled maintenance without disclosing financial details to his relatives. The Dubai Civil Court found that he breached his fiduciary duty by failing to share proceeds or provide records for more than 25 years.
The dispute began when a Gulf woman filed a lawsuit demanding her share of rent revenue from a jointly owned property. She claimed her husband’s brother had collected all payments while keeping her in the dark about leases and profits. Her husband later filed two separate cases over four other jointly owned properties. He accused his brother of controlling them exclusively and withholding millions in rent.
After reviewing the evidence, the court combined the three lawsuits into one case for efficiency. A financial expert reviewed rental contracts and income records spanning nearly three decades and determined that the couple was collectively owed Dh39.7 million in unpaid rent proceeds.
The court ordered the defendant to repay Dh6.25 million to the wife and Dh33.45 million to her husband. It dismissed the defendant’s argument that the case had exceeded the legal time limit. Judges ruled that the withheld funds were “trust assets” rather than ordinary payments, making them exempt from time restrictions.
Legal consultant Dr. Alaa Nasr explained that the ruling reinforced the principle of fiduciary responsibility in family property management. He noted that funds held in trust must be returned in full, regardless of time elapsed.
This verdict carries wider implications for property co-ownership and trust-based arrangements in the UAE. It underscores the courts’ readiness to intervene when informal family agreements lead to financial misconduct.
Moving forward, the decision serves as a cautionary precedent for families managing joint assets. Experts urge co-owners to maintain transparent financial records and establish written management agreements to prevent future disputes.
The Dubai Civil Court ruling demonstrates the judiciary’s commitment to protecting property rights and ensuring justice in complex family cases.
