UAE Services Company vs. Employees
Claim Type – Termination of Employment, Conflict of Interest, Fraud & Corruption
Jurisdiction – Africa, Ghana & Ivory Coast

CHALLENGE

Former senior employees of a UAE services company conspired to illegitimately benefit from its business in Ivory Coast and Ghana. At the company’s expense, these activities were carried out through dubious subcontracting practices for earthworks, excavation and building erections that are less scrutinized.

The case report only covered these violations, without addressing the practical, legal, or strategic components that may require further resources. Practiclaim was engaged by in house general counsel to manage the claim process. A potential measure could be taken against the above-mentioned employees and related entities in light of the sensitive nature of the matter, the reputational risks, the on-going projects risks, revenue generation pressures, and confidentiality requirements in coordination with the investigation teams.

PRACTICLAIM SOLUTION

The claim manager assessed the organizations overall situation and identified the main targets. The goal was to centralize the matter in the UAE – for efficiency and cost – and evaluate further actions and preventive measures in the relevant jurisdictions as assets, residency and citizenship became available. As a result, an action plan was drafted and a law firm was engaged for a minimal fee.

In order to build a strong case, forensic and financial experts were hired. In addition to evaluating whether the works were completed or not – if so, what percentage and at what rate – the audit also verified the financial situation of the project to prove that the subcontracts were not only for company benefit but also for employee benefit. Qualifications and selection procedures of the subcontractors were also considered.

Once a case was built, judicial action was taken against the main wrongdoers who had access to key documents and trade secrets, and were UAE residents. Additionally, precautionary orders and travel bans were considered as well as civil compensation options and employment contract suspension. Generally, UAE courts enjoy extended territorial jurisdiction – for the claimant’s headquarters, management/projects-related decisions, partial contract implementation, and place of damage in Dubai. Non-UAE residents and foreign assets were relieved of jurisdictional complications through this course.

EFFECT

As a result of Practiclaim’s method, the defendants gave in resulting in almost total relief. Due to the discounted work carried out beforehand, a favorable settlement was reached for minimal cost.

Claims management and legal expertise mean the Claimholders no longer have to decide between spending considerable sums or giving up, especially when employees’ personal interests conflict with the company. When a meritorious claim is not sufficient to achieve the right outcomes, a new approach is essential.

© 2022 Practiclaim | Prior results do not guarantee a similar outcome.