Loss of the chance of salary and promotion caused by an accident is compensable damage

Ras Al Khaimah Court of Cassation, Civil Appeals Nos. 5 and 6 of 16 JY, judgment of 30 May 2021

Court
Ras Al Khaimah Court of Cassationمحكمة تمييز رأس الخيمة
Case
Ras Al Khaimah Court of Cassation, Civil Appeals Nos. 5 and 6 of 16 JY, judgment of 30 May 2021
Arabic citation
الطعنان رقما 5 و6 لسنة 16 ق مدني، جلسة 30/5/2021
Topics
Civil law
Laws applied
Civil Transactions Law 1985 (repealed)
The judgment
Read it on courts.rak.ae ↗ (Ras Al Khaimah Courts, مجموعة الأحكام والمبادئ القانونية الصادرة في المواد المدنية والتجارية والعمالية من محكمة تمييز رأس الخيمة, judicial year 16 (2021), PDF pp. 249–257)
Summary written
31 October 2026
Print

The principle

Compensation for harm includes the loss of a chance to earn a salary and to be promoted, where the injury ends or curtails the victim's career; the trial judge assesses compensation for that loss, provided the assessment covers all elements of the harm and is reasonably explained. The trial court evaluates expert evidence, even on technical matters, and need not appoint further experts or a medical committee if it sees no need.

The case and the decision

On 27 June 2018 the appellant in Appeal No. 5 was seriously injured in Ras Al Khaimah when his car hit a truck towing a trailer that he could not avoid because of road works. His car was insured with the respondent insurer against loss, damage, civil liability and personal accident for the driver, and he sued the insurer for AED 1,482,549.50, the difference between the salary he would have earned and the pension he received after the accident ended his career. On 15 February 2021 the court of first instance awarded the full amount; on 29 March 2021 the Court of Appeal reduced the award to AED 500,000. Both parties appealed in cassation and the appeals were joined. The Court of Cassation held that the loss of a chance to earn a salary and to be promoted, resulting from an accident, is one of the elements of compensable harm, and that assessing compensation for it is within the trial judge's discretion, provided the judgment sets out the elements of the harm and the assessment is reasonable. The Court of Appeal had explained its award by reference to the difference between salary and pension, and its assessment was within its powers. The trial court also has authority to evaluate expert evidence, even on technical questions, and is not required to appoint another expert or a medical committee where it sees no need; the insurer's complaint that a medical committee should have examined the injured man was therefore rejected. Both appeals were dismissed, leaving the AED 500,000 award in place.

Why it matters

For claims arising from serious injury, the ruling confirms that lost career prospects, measured for example as the gap between salary and pension, are recoverable, but that the trial court has wide latitude over the amount: the claimant's full actuarial loss may be cut substantially on appeal without the Court of Cassation intervening.

Laws applied

Federal Law No. 5 of 1985 (Civil Transactions Law)
Decided under this law; it has been replaced by Civil Transactions Law 2025.

In the court’s words

“من عناصر التعويض عن الضرر. فوات الفرصة في الحصول على الراتب والترقي في العمل نتيجة الحادث. تقدير التعويض الجابر لضرر فوات الفرصة”

Short quotation from the judgment as published by the court. The full judgment is on the court’s official service.

Related judgments

A sale of RAK property to a buyer not entitled to own it there is void and only the price is returned

RAK Cassation — Civil 39/11 JY · 31 July 2016

A contract is void if the law prohibits dealing in its subject matter (Article 201 of the Civil Transactions Law). In Ras Al Khaimah, freehold ownership by others than UA…

Where an offshore company never started business, partners recover their contributions without a liquidation

RAK Cassation — Civil 99/11 JY · 31 August 2016

A criminal judgment binds the civil court only on what it necessarily decided about the act forming the common basis of both actions; an acquittal does not bar a civil cl…

A seller of registered land who never transferred title at the Land Department can be made to refund and compensate

RAK Cassation — Civil 4/13 JY · 26 February 2018

Delivery of a sold property may be actual or constructive, for example where the seller keeps it at the buyer's request, but ownership of registered land passes only by r…

Under apparent agency a land sale binds the owner, and only the owner can claim under it

RAK Cassation — Civil 14/13 JY · 9 April 2018

A contract may be made through an agent, whose authority under the agency agreement governs his relationship with the principal; a third party must normally check the age…

A creditor can have a debtor's sale of property set aside against it where the debts exceed his assets

RAK Cassation — Civil 28/13 JY · 25 June 2018

Where a debtor's due or deferred debts exceed his assets, a creditor whose claim is due may ask that a disposal by the debtor that reduces his assets or increases his lia…

An agreed delay penalty is payable without proof of loss unless the debtor proves none occurred or it is excessive

RAK Cassation — Commercial 47/13 JY · 13 January 2019

A penalty clause fixes in advance the loss the parties expect from a breach, so the creditor need not prove loss; the debtor must prove that no loss occurred or that the …

Source. Summary written by Polaris from the judgment published by the Ras Al Khaimah Court of Cassation on courts.rak.ae (Ras Al Khaimah Courts, مجموعة الأحكام والمبادئ القانونية الصادرة في المواد المدنية والتجارية والعمالية من محكمة تمييز رأس الخيمة, judicial year 16 (2021), PDF pp. 249–257), read on 31 October 2026. Party names are anonymised in the court’s publication.
Published for general information by Polaris Corporate Services FZ-LLC. It is not legal advice. This page is a summary written by Polaris; it is not the judgment and is not an official translation. Read the judgment on the court’s official service before relying on it. A judgment decides the dispute before the court; its weight in a later case depends on the court, the facts and any later change in the law or in the court’s own case law.

Begin a Conversation

Whether you are establishing a new venture, restructuring an existing enterprise, or exploring residency pathways — we are here to advise.

Arrange a Consultation →