In a verdict reached today, the company's former CEO Chris O'Donnell was awarded $3m in damages by the Dubai World special tribunal in a breach of contract lawsuit against the developer.
O'Donnell, who left Nakheel last summer after five years as head of the company, had sued the developer for $3.7mm in lost incentives, entitlement fees, interest, exchange rate losses and salary-related claims.
He had also sought payment for a business class airline ticket from Dubai to Australia. The tribunal awarded O'Donnell $3m for long-term incentive payments but rejected the interest and airfare claims. He was awarded an additional $249,400 for lieu days during his tenure.
"Whilst I have been entirely vindicated by the Dubai World Tribunal, I am naturally disappointed that ... the matter was not able to be resolved amicably without the need to take costly legal proceedings that vented Nakheel's internal business in a public forum," O'Donnell said in a statement after the verdict.
Nakheel's lawyers said the firm maintained its position that the case should not have been heard by the tribunal, and instead should have been held in federal court.
The tribunal had also rendered a verdict against the developer one day earlier, ordering it to pay just over $20m to an Abu Dhabi contracting firm for work completed on an unfinished residential project.
Nakheel has 14 days to pay Technical Architects General Contracting Company for failure to pay for work completed in Mogul 3 in Discovery Gardens.
TAGC was awarded a Dhs950m contract to build the 31 buildings in December 2007 but was forced to supend work in January 2009.
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Nakheel loses two court cases in Dubai this week
- United Arab Emirates: Thursday, February 09 - 2012 at 16:28
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Jeff Florian, Senior ReporterThursday, February 09 - 2012 at 16:28 UAE local time (GMT+4)
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