Finance

Global legal saga continues for Dubai entrepreneur

June 27, 2024, 3:40 AM

Dubai-based construction entrepreneur Riad Tawfiq Al Sadik must pay 85 percent of the legal costs incurred by Clyde & Co after his suit against the law firm was thrown out in April, — Riad Tawfiq Al Sadik must pay 85 percent of the legal costs incurred by Clyde & Co after his suit against the law firm was thrown out in April

Construction boss must pay legal costs
Claims against lawyers and Investcorp
Legal battles ongoing since 2009

Riad Tawfiq Al Sadik, a construction entrepreneur based in Dubai, must pay 85 percent of the legal costs incurred by Clyde & Co after his suit against the law firm was thrown out in April, a UK court ruled this week, according to a report from City AM.

The case stemmed from Al Sadik’s staggering losses on an investment of AED500 million, or $136 million, dating back to February 2008 in Investcorp Bank in the Cayman Islands.

Despite what he has long claimed were promises of guaranteed returns, the businessman’s investment nearly halved, with a drop of AED207 million (around $56 million), during the financial crisis and by the time he redeemed it in December 2009, according to court documents.

Al Sadik first pursued his claims against Investcorp in a Cayman court, but in a 98-page ruling issued on May 18, 2012, the judge overseeing the trial dismissed the entirety of the case, finding that the claimant had provided “inconsistent” and “disingenuously contrived” evidence. The judge also ordered him to pay $15.4 million in legal fees.

The UAE-based businessman appealed to two higher courts in the Cayman Islands, but both those efforts were again defeated, with the most recent decision coming down in June 2018. Al Sadik also unsuccessfully tried to bring his case in Dubai court, but was barred from doing so because of an injunction from the Cayman courts.

Ultimately, he unsuccessfully pursued his lawyers in the English court, accusing them of failing to properly advise him in the litigation with Investcorp, thereby costing him time and money. According to a report by City AM, however, this latest failed attempt will only to add to Al Sadik’s losses.