Dubai Court orders Nissan to pay 1.3 billion dirhams to a Gulf company

A court in the United Arab Emirates has told Nissan Motor Co. it must pay 1.3 billion dirhams ($354 million) to a joint venture partner who sued the Japanese automaker for breaching a vehicle distribution agreement in the region.

Al Dahana, a Dubai-based company set up by people with ties to the former Nissan boss, was accused of… Carlos GhosnThe Japanese company in 2019 retracted its contractual obligations, this happened months after Ghosn was arrested in Tokyo on charges of underestimating the value of the compensation he had received, although he has since fled Japan to escape trial and is now residing in Lebanon, denying the charges against him.

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

“We are confident that Nissan has acted correctly throughout, and we look forward to resolving the issue through the Dubai Courts for the benefit of our employees, customers and stakeholders,” Azusa Momoz, a spokeswoman for the Yokohama-based company, wrote in an email statement. As reported by Bloomberg.

The ruling issued by the Dubai Court of First Instance was announced in a statement from Al Dahana Company yesterday, Thursday.

The company was established in 2008 to help boost sales of Nissan cars in the Gulf region, and is jointly owned by Saudi billionaire Khaled Juffali and Lebanese businessman Nasser Watar, according to Bloomberg.

Nissan has faced a slew of legal cases since the arrest of Ghosn and Greg Kelly, a former Nissan boss accused of helping Ghosn hide income.

The automaker has filed a lawsuit against its former president in Japan. There are also legal proceedings 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 the compensation that Ghosn had received.

Kelly’s trial is still ongoing in Japan, with a verdict scheduled for March.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.