Arguing the Termination of a Contract

Claim
Two Dubai trading companies (the "Claimants") filed a commercial action against another local company (the "Defendant"). The Claimants requested the Court to order the Defendant to pay them a specified amount as compensation for breaching an employment contract which they had executed.

Due to the fact the contract contained an arbitration clause, the Defendant requested the Court to dismiss the case for lack of jurisdiction.

Facts of the case
The Claimants argued that they had concluded an employment/labor contract with the Defendant to prepare and carry out interior design works, and to develop the Claimant's private hotels. The Claimant further submitted that the Defendant had failed to adhere to its obligations as stipulated in the contract, delivered the assigned work late and delivered a defective work product which was below the standards recognized by the hotel industry. As a consequence the Claimants terminated the contract.