UAE Court Orders Client to Pay AED 125,000 in Legal Fees for Dismissed Complaint

An Abu Dhabi court ordered a client to pay 125,000 dirhams in legal fees to a law firm, even though the criminal complaint they handled was ultimately dismissed. The ruling highlights how legal contracts remain binding regardless of case outcomes, setting an important precedent for lawyer-client agreements in the UAE.

The Abu Dhabi Family, Civil and Administrative Court made the decision after the client failed to appear in court or dispute the agreed-upon fees. The law firm had been hired to handle both a commercial case in Abu Dhabi courts and a criminal complaint with Dubai's Public Prosecution.

According to court documents, the legal consultancy firm sued their former client for breach of contract. They argued that despite completing their work on both cases, the client refused to pay the agreed fees without justification and kept delaying payment.

The court explained established legal principles governing lawyer fees in the UAE. Lawyers typically collect fees according to their written contracts with clients. However, courts can reduce agreed fees if a client requests it and the court finds the amount excessive compared to the effort required and benefit received by the client.

But here's the key point: courts cannot reduce fees if the agreement was made after the work was completed. When there's no written fee agreement or if it's invalid, courts determine appropriate compensation based on the lawyer's effort and client benefit.

In this case, the court found a valid contract existed between both parties. The law firm's lawsuit focused solely on enforcing the contract and collecting the agreed amount. Neither party requested fee increases, reductions, or challenged the contract's terms.

The court noted that the law firm had started work on the criminal complaint with Dubai's Public Prosecution, which was later dismissed before reaching trial. Despite this outcome, the client never appeared in court to dispute the agreement or fees.

The ruling sends a clear message to both lawyers and clients in the UAE: legal service contracts remain enforceable even when cases don't succeed. Clients cannot avoid paying agreed fees simply because their case was dismissed or didn't achieve the desired outcome.

The court did reject the law firm's request for 5% legal interest, finding no legal basis for it. The final judgment requires the client to pay the full 125,000 dirhams plus court costs and fees, while rejecting other claims.

This decision reinforces the binding nature of legal service agreements and protects lawyers' rights to compensation for work performed, regardless of case outcomes beyond their control.