A Dubai court has ordered Nissan to pay 1.3 billion dirhams to a Gulf partner for breach of contract

A Dubai court has ordered Nissan to pay 1.3 billion dirhams to a Gulf partner for breach of contract

Nissan Motor said earlier: The UAE court is paying 1.3 billion dirhams ($354 million) to a joint venture partner who is suing the Japanese automaker for violating a car distribution agreement in the region.

Al Dahana, a Dubai-based company founded by people connected to former Nissan boss Carlos Ghosn, accused Nissan in 2019 of voiding its contractual obligations. This happened months after Ghosn was arrested in Tokyo for allegedly underestimating the compensation he had received, although he has since fled Japan to escape trial and is now in Lebanon.

Nissan said the partnership ended in 2019 after it fully fulfilled its contractual obligations, and legal procedures were underway in the emirate.

“We are convinced that Nissan has acted correctly at all times and look forward to resolving the issue through the Dubai Courts for the benefit of our employees, customers and stakeholders,” Yokohama spokeswoman Azusa Momoz wrote in an email statement. .

Nissan has faced a slew of lawsuits since the arrest of its car boss and Greg Kelly, the former Nissan boss accused of helping Ghosn hide his earnings. Nissan has also been sued and the automaker is suing its former boss in Japan.

Legal proceedings are also underway in France and the Netherlands. Last month, Nissan agreed to settle a class action lawsuit in the United States by investors who said they had been misled about Ghosn’s damages. Kelly’s trial is still pending in Japan, with a ruling due in March.

The ruling of the Dubai Court of First Instance was announced, Thursday, in a statement issued by Al Dahana. A Paintball representative did not respond to a message requesting comment.

Founded in 2008 to boost sales of Nissan cars in the Gulf region, Paint is owned by Saudi billionaire Khaled Juffali and Lebanese businessman Nasser Water. Both Ghosn and Kelly denied the allegations.

“Al-Dahana is very pleased with the court’s ruling and would like to thank the Dubai Courts for their impartial and fair ruling,” Water said in the statement, adding that the decision “paves the way for other regional companies to pursue justice as well.” research .”

According to the statement, the Dubai Court imposed a precautionary seizure on the assets and movable property, bank accounts and assets of the two companies.

Updated: October 15, 2021, 9:14 am

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