Thank you for that information. Seems to match the information given by Tony It is a very long time that they have been awaiting the DEWA certificate. Let us know how your visit to MED goes.
Thanks Sven for letting us know.sunday i ll pay a visit to MED office.
I notice that you have not posted since my last post specifically for you. It is important for us to know whether TLG have all your paperwork, the SPA and Rental Management Agreement which they have asked me to send. I currently have a problem with my scanner and it has gone in for repair. However if they already have yours ours will be worded the same and they could give us advice more quickly.
We asked their advice now before handover because of the registration requirements of the DLD.
We have had information from a reliable source that once the fee for registration is paid to DLD you will then be the legal owner of your unit regardless of whether it is an hotel apartment or a normal residential apartment leaving you no recourse in terms of refusing handover. It has also been said by MED that they will make a decision following handover in terms of the remainder of clients still in the Rental Programme whether to give the apartments to a third party agent to manage as normal residential apartments. The upshot is that the building is not going to be hotel apartments and as such MED are breaching our contracts.
Can you please let us know any progress from your side. Depending what advice comes back from TLG and if the advice is to do something now, then anyone contemplating legal action should join forces and we may get a better deal.
My two cents - hold off from paying any money to the law firms.Hi - sorry I am at my house in Spain at the moment and haven't been checking the forum - I have sent TLG all my documents some time ago - they wanted £1100 to review them - so I held off as MED had not said they wouldn't be fulfilling their obligations. Rgds Lawrence
You are correct, in my opinion, but here is what I think - having paid and signed a SPA originally (when MED sold us the unit),does not make us "illegal owners".For Sophielsie
We do not know what the consequences of not registering with the DLD will be but we think we need to do something soon. Almost certainly MED will now be trying to hang out until 31 October 2015 hoping for everyone to register and become the legal owner giving us few options.
In response to Sophielse's correspondence with TLG:
It is going to be very interesting to see what the response is going to be to the following key questions:
-"what you considered to be a successful outcome ?" - A very key question! Thanks
- "We are unsure as to if we don’t pay this our Sales and Purchase Agreement and Rental Agreement become invalid ?" - DLD is all confused and so are the lawyers, but we need to see the response to this question, if TLG is any good.
- We do have concerns that even if we try and sue MED it will take many years and they don’t appear to have any money – so we will end up with significant legal expense in addition to our investment being lost. - Can they do a "no-win-no-fees" deal?
- "DEWA is not giving MED electricity and MED is faced with 35 million DHS fines also". - Can TLG confirm Fact or fiction?
- "Not a 5-start finish, with inferior quality material". - Can TLG confirm Fact or fiction?
My two cents
We would also love to be part of this class action suit. But to our understanding, the UAE law do not allow for class action lawsuits.The question is:
- Has any investor been paid back their investment?
- How long did it take?
- What were their circumstances? (project cancellation? 50% completion? change in SPA?)
If a class action can be won (and with money back guarantee),then 100's and 1000's of investors are going to queue up to go to court and get their investments back. Developers would be bankrupted overnight!. Law firms will offer "no-win-no-fees" deals, and make loads of cash.
The news would spread like wild fire.
But I don't see any signs of a frenzied legal sector in Dubai, cashing in on the situation.
Email from MELANIE MENDIKYAN, MANAGING DIRECTOR. She also attached the case ruling they won against MED. I sent them my SPA, statement of account and the rental agreement.
From: Melanie Mendikyan
Sent: 05 August 2015 10:15
To: Lawrence Clark
Subject: RE: QUERY : Case Against MED
Thank you for contacting the law offices of Al Reyami Advocates and Legal Consultants.
We have received your inquiry and understand your concern.
We have already taken a judgment against MED for our client in the Arbitration Centre. We are now in the process of execution.
We have received the SPA and already read through it. If you would proceed in filing the case in DIAC you do not need to pay the 4% fees to DLD (Dubai Land Department)
The judgment we have been awarded for the MED Case is already in process of execution.
I have attached the award that we have received for our client against MED, which is self-explanatory . Please do review the final award.
All this fees will be refunded to you once the case is won. If you go through the final award you will notice that the arbitration center has awarded our client 6% interest from 2009, plus arbitration fees, plus legal fees and terminated the contract and refund of all the investment by done by our client.
I would suggest in filing the case in Arbitration Centre to avoid in paying the fees to DLD.
The upfront fees will include below course of action.
We need to prepare an "Arbitration Application" to be filed in Dubai International Arbitration Center (DIAC) with a filing fee amounting to AED 5,000. This application will state the general statement of facts, issues and claims embracing the dispute- the documents to be attached therein are as follow: contract, receipts (if applicable),POA. We maintain not to divulge everything at this stage and reserve our legal arguments and pieces of evidence during the case proper.
Once submitted, the Arbitration Center shall direct the respondent to answer the Arbitration Application. After answering the arbitration application, the Arbitration Executive Committee shall decide whether to transfer the case to an Arbitrator. Once concluded by the executive committee, it will direct the parties to pay the Advance cost. This advance cost may vary depending on the amount being claimed by the party/ claimant and this amount shall be paid equally by the parties (both claimant and respondent). However, in the event that the respondent failed to pay the advance cost, the Arbitration Center shall direct the claimant to pay the respondent's share. The payment tendered by the claimant in substitution to the respondent's share in the advance cost is recoverable as part of the cost against the losing party.
After all the fees are paid, the Arbitration Center shall transfer all the files and case to an Arbitrator- the arbitrator, unless otherwise specifically mentioned in the contract, shall be appointed by the Center- to constitute a tribunal.
Once the tribunal is duly constituted, the arbitrator shall direct the parties to hold a preliminary hearing in order to discuss the following:
1. order of the case,;
2. presentation of power of attorney;
3. house rules and regulation;
4. documents to be submitted; and
5. any other matter as may be raised by the parties.
After the preliminary meeting, the parties are required to present and submit the following documents:
1. Statement of claim;
2. Statement of Defense;
4. Rejoinder; and
5. Sur- rejoinder (if allowed)
During this submission, an additional evidence may be submitted through the presentation of an expert. An expert is specialized individual who shall determine the issue embracing the matter. Aside from the expert report, we maintain to submit a witness statement to be presented in the hearing.
Once completed, the hearing scheduled shall be fixed by the arbitrator to present and cross examine all witnesses in the case. The final stage for the arbitration proceeding is for the parties to submit their respective closing statement- this statement summarized all pertinent issues of the case- until the arbitrator formally closes the proceeding and render his/ her final conclusion on the matter.
The legal fees will be 40,000AED upfront payment on the signing the retainer agreement
4% once we obtain the arbitration award in our favor
4% of the recovered or settled amount.
Arbitration Centre Fees
Amount in Dispute 383560
Number of Arbitrator 1
Advance on costs (Without Arbitrator's expenses)
Average Fees multiplied by arbitrator's 25510.20
Administrative Fees 10000.00
Fixing the fees of the Tribunal
DIAC Arbitration Rules 2007
Appendix Costs of Arbitration
The Executive Committee may, at any time during the arbitration, fix the fees of the arbitrators at a figure higher or lower than that which would result from the application of the Table of Fees and Costs due to the circumstances of the case. For this purpose, the Centre should take into account fluctuation in the amount in dispute, changes in the amount of the estimated expenses of the Tribunal, or the evolving difficulty or complexity of arbitration proceedings. The Executive Committee shall determine how such increase shall be allocated between the parties. Any party may issue an unconditional bank guarantee to cover such increase in a method acceptable to the Executive Committee.
P.O. Box 215880, Dubai, U.A.E.
Mob : 00971 55 954 7308
Tel: 00971 4 4534188
Fax: 00971 4 4534189