A major local bank in Dubai is facing a high-stakes civil lawsuit filed by the heirs of a deceased Canadian businessman, who accuse the institution of financial misconduct and violating court orders by mishandling tens of millions of dirhams from the late entrepreneur’s estate.
The case, currently before the Dubai Court of First Instance, was initiated by the businessman’s brother and two sisters. They allege that the bank executed unauthorised transactions from their brother’s accounts following his death in October 2020 — despite being officially notified of his passing.
The plaintiffs are seeking Dhs76.9 million in recovery, along with interest and compensation. Their legal team asserts that a financial review uncovered serious breaches in how the bank handled the estate, including the disposal of Dhs110 million in funds, and failing to adhere to directives issued by the Dubai Probate Court.
A court-appointed accounting expert’s report, submitted by the heirs, detailed irregular posthumous activity in the deceased’s bank accounts — including unauthorised bank transfers and cheque withdrawals. These transactions reportedly amounted to over Dhs22 million. The report also flagged concerns about assets that may have belonged to the deceased but were not formally registered in his name, and which the bank allegedly failed to disclose.
Lawyer Awatif Shawqi, representing the heirs, said the bank’s actions — particularly the Dhs87 million it allegedly froze for two years without substantiated claims — represent a clear breach of fiduciary and legal responsibilities.
“The bank was formally informed of the client’s death in October 2020,” said Shawqi. “Despite this, it proceeded with financial activity on the deceased’s accounts without any authorisation from the competent court.”
Shawqi also accused the bank of withholding crucial information about the deceased’s investment portfolios and deposits, calling for a comprehensive audit to determine the full scope of the estate’s mismanagement. She further requested that the court compel the bank to disclose all related documents and financial records.
The legal dispute underscores growing concerns around estate administration in the UAE, especially when it involves expatriate investors with complex holdings. The case is expected to test how Dubai’s commercial and probate courts address alleged breaches by financial institutions in managing high-value estates.
A verdict in the matter is still pending as the court reviews documentation and awaits responses from the bank.