September 12, 2024 SCT - JUDGMENTS AND ORDERS
Claim No. SCT 269/2024
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL OF DIFC COURTS
BETWEEN
NAILA
Claimant
and
NAKIR
Defendant
| Hearing : | 15 August 2024 |
|---|---|
| Further Submissions : | 16 August 2024 |
| Judgment : | 12 September 2024 |
AMENDED JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI
UPON this Claim being filed on 4 July 2024 (the “Claim”)
AND UPON a hearing listed before H.E. Justice Maha Al Mheiri on 15 August 2024 at which the Claimant’s representative and the Defendant were in attendance (the “Hearing”)
AND UPON reading the submissions and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the amount of AED 12,004.25.
2. The Defendant shall pay the Claimant’s DIFC Courts’ filing fee in the amount of AED 600.61.
Issued by:
Delvin Sumo
SCT Judge and Assistant Registrar
Date of issue: 12 September 2024
Date of re-issue:12 September 2024
At: 1pm
THE REASONS
The Parties
1. The Claimant is Naila, a company that offers car rental services located in Dubai (the “Claimant”).
2. The Defendant is Nakir, is an individual that rented a vehicle from the Claimant (the “Defendant”).
Background and the Preceding History
3. The Defendant rented a car from the Claimant for his friend Mr. Naqsh. A rental agreement was issued for a period of 3 days, starting from 9 to 12 May 2024, for the amount of AED 1,455 (The “Rental Agreement”).
4. On 12 May 2024, Mr. Naqsh informed the Claimant that he wanted to extend for one more day, he paid through Nasmi App and sent the screenshot of the transfer to the Claimant. However, the amount was not received by the Claimant. On 20 May 2024, Mr. Naqsh returned the car to the Claimant’s car park. After inspection of the car, the Defendant noticed there was damages in the windscreen, cigarettes smell in the car and unpaid Salik and speeding fines.
5. The Claimant informed the Defendant of the outstanding amount which he failed to settle. The Defendant submits that he only rented the car for 3 days for his friend and any extra rent or damages should be charged to Mr. Naqsh in his own capacity. The Defendant also added that he used his credit card to pay for the 3 days but does not approve any additional charges as he was not driving the car and does not speak English.
6. On 4 July 2024, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal (the “SCT”) for the unpaid rent and damages in the amount of AED 12,004.25.
7. On 31 July 2024, a consultation was listed before SCT Judge Maitha AlShehhi, at which the parties failed to reach an agreement.
8. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a Second Hearing held on 15 August 2024.
Discussion
9. First and foremost, the relevant Agreement falls under the DIFC Courts’ jurisdiction as stated under Clause 20 of the Terms and Condition of the Rent Agreement:
“This agreement is made and governed by the laws of the United Arab Emirates as applied in the Emirate of Dubai. In the event of any dispute between the Lessor and the Lessee, the parties consent to the exclusive jurisdiction of the courts of the Dubai International Financial Centre.”
10. The Claimant provided invoices for the following items which amounts to AED 13,552.75, but the Claimant is only claiming the amount of AED 12,004.2 from the Court;
(a) AED 6,300 for the replacing of the windshield and other damages;
(b) AED 173.25 for Salik;
(c) AED 5,601.75 for 11 additional 11 days of rent; and
(d) AED 1,478 for traffic fines.
11. The Claimant relies on the following Clauses from the terms and conditions of the Rent Agreement:
1. This Agreement is made between Lessor "Naila" (the "Lessor") and the Lessee (mentioned overleaf) (the "Lessee"), to rent the vehicle identified overleaf, with accordance to all terms and conditions stated in this Rental Agreement (both pages), by signing this agreement overleaf Lessee agrees to all terms and conditions of this Rental Agreement (the "Rental Agreement"), "You" and "your" refer to the person who signs this Rental Agreement, "we", "our" and "us" refer to the Lessor. You also agree that you are not our agent for any purpose and that you cannot assign or transfer your obligations.
2. You acknowledge that you are renting the vehicle described in this Rental Agreement (the "Vehicle"), which rental is solely a bailment for mutual benefit. You agree to the terms below, provided any such term is not prohibited by the law of the jurisdiction governing this rental, in which case such law controls.
5. Who May Drive the Vehicle. You represent that you are a capable and validly licensed driver. You agree that we have the right to verify that your license has been validly issued and is in good standing, and that we may in our sole discretion refuse or stop the rental if your license has been suspended, revoked, otherwise restricted in any way…
11.7 Lessee shall be obligated to pay any fines, penalties, court costs or other expenses imposed on Lessor by law arising from the use of the vehicle during the rental period, this shall not relieve the Lessee or any other person of direct responsibility to any government authority for his own unlawful conduct.
11.8 Lessee shall provide a security deposit to the Lessor as well as Lessee authorize Lessor to use security deposit to clear any outstanding amount arising from the use of the vehicle during Rental Agreement period.
11.9 Lessee shall be responsible for any Salik, toll gate fees or traffic fines incurred during the time of the execution of the Rental Agreement There will be a service charge of AED 1.00 for each toll gate fee and AED 60.00 for each traffic fine together with 5% VAT will be applied on top of each toll gate fee and traffic fine amount. In case the Lessee incurs a traffic fine with black points from other Emirates, the Lessee shall attend the respective competent traffic department within two (2) working days to remove the black points, failing which the Lessor will the compelled to do so on behalf of the Lessee and shall be entitled to apply a service charge in the amount of AED 1000.00, with which the Lessee is hereby in agreement.
11.10 If the Lessee fails to comply with any conditions for special rates specified on the Rental Agreement, otherwise applicable rates will be charged. The Lessee shall be obligated to pay all charges that apply to the rental for miscellaneous services and, where permitted, airport facility fees and/or concession recovery fees, vehicle license recovery fees, other fees and surcharges.
a) The Lessee will also pay a reasonable fee for cleaning the vehicle's interior upon return for excessive stains, dirt or soilage and stains attributable to his use as determined solely by us
b) If key(s) are not returned with the vehicle, the Lessee may be charged an additional fee
c) We maintain a non-smoking fleet. You will pay an additional charge it you return the vehicle and it smells of smoke
d) The Lessee and any third party to whom any rental charges are billed, such as an insurer or employer, are jointly and severally responsible for payment of all such charges.
…
19. Fines, Expenses, Coste and Administrative Fees. The Lessee shall pay all fines, penalties and court costs for parking, traffic, toll and other violations, including storage liens and charges. The Lessee will also pay a reasonable administrative fee with respect to any violation of this Rental Agreement, such as for repossessing or recovering the vehicle for any reason The Lessee agrees we may, in our sole discretion, pay all rickets, citations, fines and penalties on your behalf directly to the appropriate authority and the Lessee will pay us for what we paid to the appropriate authority or their designated agents plus a reasonable administrative fee. The Lessee agrees and acknowledges that we cooperate with all federal, municipal and local officials charged with enforcing these infractions to provide any information necessary as they may request or may otherwise be required”
12. Upon review of the court file and the submissions contained therein, I agree with the Claimant’s submissions. Despite the Defendant denying liability of the extra rent days and all the fines, the terms and conditions included in the Rent Agreement state that if the driver did noy pay the person who signed the Rental Agreement is responsible for any additional cost incurred.
13. As such, the Claimant’s claim for rent amount and damages is accepted.
Conclusion
14. In light of the aforementioned, I find that the Defendant shall pay the Claimant the amount of AED 12,004.25.
15. The Defendant shall pay the Claimant’s DIFC Court’s filing fee in the amount of AED 600.61.
