Picture for illustrative purposes only. ARCHIVE

The UAE’s Federal Supreme Court has overturned a Dh3 million compensation award granted to a father who lost his three sons in a fatal traffic accident, ruling that the lower court did not sufficiently explain how the amount was calculated. The accident involved a company-owned truck driven by an employee who was later convicted in a final criminal judgment of driving under the influence of alcohol. The crash resulted in the deaths of the three brothers and injuries to other family members. A court of first instance had ordered the driver and the employer company to jointly pay Dh3 million in compensation, along with Dh600,000 in blood money, plus interest. The appeals court upheld that decision. The company challenged the ruling before the Federal Supreme Court, arguing that it should not be held liable because the accident occurred outside official working hours and during a weekly holiday. The top court rejected that argument. It ruled that the employer remains responsible as the custodian of the vehicle, regardless of when the incident took place. However, the court accepted the company’s objection regarding the compensation amount. It found that the previous judgment failed to clearly detail the elements of material damage or the basis used to determine the Dh3 million award. The Supreme Court therefore overturned the compensation ruling and referred the case back to the lower court for reassessment of damages. The ruling confirming employer liability remains in effect. The decision clarifies that companies may still bear responsibility for incidents involving their vehicles, while courts must clearly justify how compensation figures are calculated. ICA/Expat Media
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