Dubai Court: Electronics firm's Dh1.2 million lawsuit dismissed
A Dubai court dismissed an electronics firm’s lawsuit against its former CEO, citing a failure to first pursue resolution through the Ministry of Human Resources.Summary
A Dubai court has dismissed a Dh1.2 million lawsuit filed by an electronics company against its former CEO, ruling that the dispute should have been initially addressed through the Ministry of Human Resources and Emiratisation (MoHRE). The company accused the former CEO of causing financial losses through poor management practices, including inventory issues and supply chain disruptions. They sought compensation for losses exceeding Dh1.25 million, along with additional damages and legal interest. However, the court determined the case was fundamentally an employment-related matter, falling under the jurisdiction of the Labour Relations Law. Specifically, Article 54 of the law mandates attempting amicable settlement via MoHRE before litigation. The court found no record of the company filing a complaint with the ministry prior to filing the lawsuit, deeming the case inadmissible on procedural grounds and waiving court fees. The defendant had argued the case was a labour matter and should have been presented to the MoHRE, a position the court ultimately supported.
(Source：Gulf News)