Contractors who worked on the construction of the hotel were accused of failing to implement fire safety measures and therefore contributing to its spread
The Dubai Civil Court has dismissed the lawsuit of an insurance firm seeking to recoup the Dh1.25 billion it had paid as part of an insurance claim in the 2015 New Year’s Eve fire at the Address Downtown hotel.
Emaar Properties’ insurer in the UAE, Orient Insurance, compensated the developer Dh1.25 billion to cover the losses brought on by a fire that started in the hotel.
After the agreement was reached, Orient Insurance filed a civil lawsuit in the Dubai Courts, accusing the hotel’s construction companies, including ALEC Engineering and Construction, Mirage and GAJ, Atkins, and Arabtec, of failing to follow fire safety regulations and causing the fire to spread.
The business demanded repayment for the insurance premiums it had given to Emaar.
On Wednesday of last week, the Dubai Court of Appeal affirmed a decision in favor of the contractors after the case was rejected.
Sherif Hikal, founding partner at OGH Legal, speaking on behalf of ALEC Engineering and Construction, stated that “our client’s stance was appropriately presented from day one, and three years later, the honorable Dubai Courts validated it as right.”
It was a highly tough situation with really difficult technological problems.
An expert committee’s reports, which claimed that the contractors had not been found to be at all at fault and that the fire had been started by an electrical short-circuit, were among the documents provided before the court.
According to ElGhatit, difficult cases like this one will be sent to other venues, such as international courts or arbitration. Nevertheless, he said, “Recently, similar issues are being reviewed and decided by UAE Courts, which demonstrates a faith in the nation’s judicial system.”
You have 60 days to appeal the decision.