Dubai court upholds dismissal of Dh150,000 compensation claim, rules no abuse of legal rights

Dubai: The Dubai Court of Appeal has upheld a lower court ruling dismissing a Dh150,000 compensation claim, finding no abuse of legal rights and ordering the appellant to bear court costs, legal fees and seizure of the security deposit.

The court said the appeal was accepted in form but rejected on merit, affirming the Court of First Instance judgment in full.

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The defendant, represented by lawyer Mohammed Al Awami Al Mansoori of Al Awami Al Mansoori Advocates and Legal Consultants, argued that his client had exercised his constitutionally protected right to approach authorities. He stressed that civil liability arises only when complaints are filed in bad faith or with intent to cause harm.

In its ruling, the court found the plaintiff failed to prove any wrongdoing by the defendant, citing lack of evidence of abuse of process, improper motive or a direct causal link to establish liability.

Court records show the dispute stemmed from a former employment relationship at an aircraft maintenance engineering company in Dubai. The defendant had been dismissed over alleged violations.

After his termination, an email sent to a prospective employer stated he had been dismissed for misconduct and referenced pending labour and legal matters. The plaintiff denied authoring the email, saying he was only copied on it.

Claiming reputational damage and loss of job prospects, the former employee filed a police complaint alleging libel and online insult. While an investigation was launched, the Public Prosecution later closed the case due to insufficient evidence.

The plaintiff subsequently filed a civil suit, alleging the complaint led to a temporary travel ban and caused financial loss, reputational harm and psychological distress. He argued the report was retaliatory and filed in bad faith.

The defence countered that UAE law distinguishes between legitimate use of legal channels and abuse of rights. It added that precautionary measures, such as travel bans, are imposed by authorities and cannot be attributed to the complainant.

Citing Article 106 of the UAE Civil Transactions Law, the court reiterated that reporting suspected criminal conduct is lawful unless exercised without legitimate interest or for improper purposes.

The court found no evidence of bad faith or intent to harm, noting that the closure of a criminal case does not, by itself, prove malicious reporting.