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Abu Dhabi: The Gulf
The Abu Dhabi Supreme Court ruled that an appeal in a case between two motor insurance companies was not allowed, and the first instance court decided to order the appellant “an insurance company” to pay compensation to the appellant in the amount of AED 3,589,679.00, with interest at 5% per annum from the date of filing the case until full payment, including costs and expenses, and upheld the first instance court’s decision.
The case details stated that the accident occurred due to a vehicle insured by the appellant “Insurance Company”, the damaged vehicle was insured by the appellant “Insurance Company”, and the appellant had fulfilled its contractual obligations with the “Insurance Company”. The appellant had repeatedly requested it to pay these amounts, but she refused, and she owed the amount claimed, so she filed a lawsuit. In response to the lawsuit, the appellant argued that lawsuits with multiple claims in one document should not be accepted, that they did not have a single relationship, and as a precautionary measure, cases regarding claims for loss of rights should not be heard. More than three years later, the first instance court heard these cases and appointed a special expert. The first instance court decided to require the appellant to pay the respondent 3,589,679.00 dirhams and interest at 5% per year. The date of registration of the case until full payment and costs and expenses, and all other requests were rejected.
The appellant appealed against this decision and the Abu Dhabi (Simple) Commercial Appeals Court decided to dismiss the appeal with costs to the appellant. The appellant therefore appealed against this decision by way of cassation.
The General Authority of the Abu Dhabi Court of Cassation, in accordance with its previous ruling on the request for transfer, ruled that the principle of applying multiple traffic accident claims filed by one insurance company against another in order to obtain compensation to the affected person should be estimated based on the value of each claim, taking into account that it is based on different legal reasons, but if the claim is based on a settlement contract signed between them, it should be based on one law. Therefore, the valuation in this case is the value of the entire claim, and according to the law, the objector has the right to appeal the decision made by the court if the value of the case exceeds (AED 500,000), AED 500,000, or the value is not estimated, which also means that if the value of the case does not exceed the above amount, the decision made by the Court of Appeal is final and cannot be appealed by cassation. It is clear from the documents submitted in the lawsuit and the report of the consultant expert that the claim in the lawsuit is the value of multiple traffic accidents, that is, it is caused by various legal reasons and is the value of multiple traffic accidents. Each of the claims fell below the minimum quorum for appeal, both those claims for which the contested decision was dismissed and those for which the appeal was ruled inadmissible, as the highest claim was AED 137,144, while the remaining claims were AED 137,144. The amount of the claims did not exceed their value before the quorum was reached for the appeal and since no evidence was presented to prove a settlement between them, the proceedings were not based on any settlement and, consequently, the decision of the contested decision could not be appealed by way of cassation, which required a ruling that the appeal was not allowed.
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