17 Jul 2024
Introduction: The United Arab Emirates (UAE) boasts a legal system intricately woven with a tapestry of civil law and Sharia principles. This amalgamation creates a distinctive framework for addressing various legal matters, including the compensation awarded for pecuniary and non-pecuniary losses. Pecuniary losses, more commonly known as financial or direct losses are losses which can be quantified financially as there is a direct correlation between the amounts claimed and the losses occurred. Non-pecuniary losses, more commonly known as moral damages, are difficult to quantify. This essay delves into the multifaceted aspects of moral damages in the UAE, exploring the legal foundation, the scope of damages, the factors influencing awards, and the role of case law and precedents in shaping this evolving facet of the legal landscape.
Legal Basis for Moral Damages in the UAE: At the core of the UAE legal system lies the Civil Code, which serves as the primary legislative document governing various aspects of civil law. Specifically, Article 293 of the UAE Civil Code lays down the foundation for awarding compensation for non-material damages, encompassing what is commonly referred to as moral damages. The Article states that, “(1) The right to have damage made good shall include moral damage, and an infringement of the liberty, dignity, honour, reputation, social standing or financial condition of another shall be regarded as being moral damage. (2) It shall be permissible for an order to be made by way of compensation for moral damage caused to a spouse or relatives of the family, by reason of the death of the victim. (3) The right to receive compensation for moral damage may not be transferred to a third party unless the amount of it has been fixed by agreement or by a final judicial order.”
This legal provision recognizes the right of individuals to seek redress for harm caused to their dignity, reputation, or emotional well-being. The amalgamation of civil law principles and Sharia tenets within the UAE legal framework is particularly significant when understanding the basis for moral damages. While the Civil Code provides a general framework, the principles of Sharia law contribute to the nuanced considerations involved in recognizing and assessing moral damages. The intersection of these legal traditions establishes a unique approach to addressing harm that extends beyond the realm of financial losses. While this provision seems to be stated in a way that its applicability is only under the umbrella of a tort liability, this article has been stated to provide relief in commercial cases by the courts in recent times.
Scope of Moral Damages in the UAE: Moral damages in the UAE encompass a broad spectrum of non-material losses, acknowledging that harm can manifest in various forms, such as damage to reputation, emotional distress, mental anguish, and the violation of personal rights. Unlike pecuniary damages, which are quantifiable in monetary terms, moral damages aim to compensate individuals for intangible and often emotional injuries resulting from wrongful acts or omissions.
One of the distinctive features of moral damages in the UAE is their ability to address the intricate nature of human experience. This includes the recognition that harm extends beyond financial losses and may involve complex emotions, psychological trauma, and damage to personal relationships. By acknowledging and compensating for these intangible losses, the UAE legal system seeks to provide holistic redress to individuals affected by wrongful acts.
Factors Considered in Awarding Moral Damages: The assessment of moral damages in the UAE involves a meticulous consideration of various factors, ensuring a comprehensive evaluation of the harm suffered by the affected individual. These factors play a pivotal role in determining the appropriate amount of compensation and contribute to the nuanced nature of moral damages awards:
- Severity of the Wrongful Act: The gravity and nature of the wrongful act stand out as key determinants in assessing moral damages. Courts take into account the severity of the actions that led to harm, weighing the impact on the individual's reputation, emotional well-being, and overall quality of life.
- Intent or Negligence: The intent behind the wrongful act is a critical factor influencing the award of moral damages. Actions deemed intentional and malicious typically result in higher compensation, reflecting the culpability of the wrongdoer. On the other hand, acts of negligence may lead to a lower but still consequential award.
- Impact on the Individual: A holistic understanding of the harm caused to the individual is paramount in determining moral damages. Courts consider the emotional distress, mental anguish, and overall impact on the individual's life, recognizing that harm can manifest in myriad ways.
- Cultural and Religious Sensitivities: Given the significant influence of Islamic principles in the UAE, cultural and religious sensitivities are integral to the assessment of moral damages. Actions that violate Islamic values or cultural norms may result in higher compensation, reflecting the importance of aligning legal remedies with societal and religious standards.
The consideration of these factors reflects the commitment of the UAE legal system to tailor compensation to the unique circumstances of each case, ensuring a just and equitable outcome for the aggrieved party.
Case Law and Precedents: The evolution of moral damages awards in the UAE is intricately linked to the development of case law and the establishment of legal precedents. While statutory law, such as Article 293 of the Civil Code, provides a foundational framework, the interpretation and application of these laws often rely on the guidance offered by previous court decisions.
Case law has generally set the precedent that moral harm cases arise in the context of personal injury. As such, the majority of precedents can be found within matters of medical and personal injury. For instance, in Civil Appeal case 175/2014, wherein a child was physically assaulted at his school; the UAE Court of Cassation confirmed the decision as passed by the court of appeal to increase the total compensation award from AED 400,000 to AED 500,000 to include the moral harm suffered by the parents, in addition to the physical and moral harm suffered by their child.
Commercial Application: In Appeal number 1129/2018, the Cassation court reiterated an award of damages for moral harm for a company’s contract case. The claimant company's trademark had been used, without its consent, on fraudulent merchandise. The Court of Appeal ordered the defendant to pay AED 5,000 in line with moral harm caused by the client. Before the Court of Cassation, the claimant applied for an increase of AED 5,000 in these moral harm damages. In relying on Article 293, the Court of Cassation did not award the increase, concluding that this was a factual finding over which the Court of Appeal had sole discretion.
Moreover, the role of case law extends beyond providing guidance; it serves as a dynamic force shaping the contours of moral damages in the UAE.
Conclusion: In conclusion, moral damages awards in the UAE epitomize the intersection of civil law and Sharia principles, offering a unique and nuanced approach to compensating individuals for non-pecuniary losses. The legal foundation, as established in Article 293 of the Civil Code, reflects the commitment of the UAE legal system to addressing the intangible and emotional aspects of harm. The scope of moral damages is broad, encompassing damage to reputation, emotional distress, mental anguish, and violations of personal rights.
The assessment of moral damages is a meticulous process, considering factors such as the severity of the wrongful act, intent or negligence, impact on the individual, and cultural and religious sensitivities. These factors contribute to a holistic understanding of the harm suffered by the aggrieved party, allowing for a tailored and just compensation.
The role of case law and precedents is pivotal, providing guidance to the judiciary and shaping the evolution of moral damages in the UAE. As the legal landscape continues to evolve, the principles surrounding moral damages are likely to adapt, ensuring that the legal system remains responsive to the complexities of human experience and the ever-changing dynamics of society. We have been able to notice the same in the last few years on how courts have been granting damages to the affected parties in such aspects. The nuanced and comprehensive nature of moral damages in the UAE underscores the commitment to justice and fairness, offering a legal remedy that extends beyond the quantifiable realm of financial losses.