Atayyar Legal Company

Case Study

SAR 3 Million Rent & Lease Termination Dispute Settlement

Dispute Value

SAR 3,000,000

Atyar Advocates and Legal Consultants represented a real estate company in a lease dispute involving assets valued at over SAR 225 million. The dispute concerned approximately SAR 3 million in outstanding rent and the termination of the lease due to delayed payments. After an initial judgment dismissed the termination claim, the firm successfully appealed before the Riyadh Court of Appeal. During the appeal, the parties reached an amicable settlement, with the tenant agreeing to pay all outstanding rent according to an agreed schedule.

Quick Matter Overview

Value of the Real Estate Assets

More than SAR 225,000,000

Value of the Claim

Approximately SAR 3,000,000

Nature of the Dispute

Outstanding rent and termination of a lease agreement

Nature of the Relationship

Lease and real estate investment

Duration of the Matter

Approximately 6 months

Outcome

Amicable settlement requiring the tenant to pay all outstanding rent

Background of the Dispute

The dispute involved a fixed-term lease of real estate assets valued at over SAR 225 million, with approximately SAR 3 million in outstanding rent. The landlord initiated legal proceedings seeking payment and lease termination, but the termination claim was initially dismissed.Atyar Advocates and Legal Consultants reviewed the case, prepared a comprehensive appeal, and represented the client before the Riyadh Court of Appeal. During the proceedings, the parties reached an amicable settlement, with the tenant agreeing to pay all outstanding rent according to an agreed schedule.

Residential property model with a lease agreement, property keys, and a judicial gavel representing the settlement of a rental dispute and outstanding rent claim in Riyadh.

Value Involved

More than SAR 225 million

Value Claim

Approximately SAR 3 million

Subject Matter

Rent Arrears & Lease Termination

Authorities

Riyadh Courts

Nature of the Real Estate and Commercial Dispute

The matter involved a SAR 3 million rent dispute and a claim for lease termination due to payment defaults. The legal work included reviewing the lease, assessing contractual obligations and the first-instance judgment, preparing the appeal, and negotiating a settlement to protect the client’s rights and recover outstanding rent.

Legal work included reviewing the employment contract, non-renewal decision, legal position, applicable regulations, and jurisdiction.

Essential Elements of the Dispute

Outstanding Rent

Determining the amount of unpaid rent and the relevant contractual due dates.

Lease Agreement

Reviewing the provisions governing the lease term, rental amount, contractual obligations, and consequences of default.

Lease Termination Claim

Assessing the contractual and legal basis for terminating the relationship as a result of non-payment.

First-Instance Judgment

Reviewing the judgment dismissing the termination claim and identifying the grounds on which it could be challenged.

Appeal Memorandum

Preparing a comprehensive legal memorandum challenging the first-instance judgment before the Court of Appeal.

Amicable Settlement

Reaching an agreement regulating payment of the outstanding sums and bringing the dispute to an end.

Key Legal Challenges

Adverse First-Instance Judgment

A first-instance judgment had already dismissed the client’s claim for termination, requiring the matter to proceed to appeal with a carefully structured legal challenge.

Continuing Rental Default

The dispute involved accumulated rental arrears of approximately SAR 3 million increasing the financial impact of the matter.

High Value of the Real Estate Assets

The underlying assets exceeded SAR 225 million in value, requiring the dispute to be managed with particular legal and commercial care.

Combining Recovery and Termination Claims

The case involved both recovery of outstanding rent and termination of the lease, requiring each remedy to be assessed on its own legal and contractual basis.

Appellate Proceedings

It was necessary to analyse the reasoning of the first-instance judgment and formulate an appeal capable of presenting the contractual and legal issues afresh before the Court of Appeal.

Settlement Preserving Client’s Rights

The practical challenge was to achieve a settlement that secured payment of the outstanding rent while providing clear and enforceable obligations for the tenant.

Our Legal Strategy

Comprehensive Review of the Case File

The legal team reviewed the lease agreement, financial claims, supporting documents, and first-instance judgment as a whole.

Analysis of the First-Instance Judgment

The reasoning of the judgment was examined and the available grounds of appeal were identified.

Preparation of the Appeal Memorandum

A detailed appeal memorandum was drafted and filed before the Court of Appeal.

Strengthening the Rental Claim

The tenant’s financial obligations and the outstanding rental amounts were clearly documented and presented.

Managing the Negotiation Track

In parallel with the appellate proceedings, the firm assessed the possibility of resolving the dispute through settlement in a manner that protected the client’s financial and legal interests.

Concluding the Amicable Settlement

The parties reached a settlement under which the tenant committed to pay all outstanding rental instalments according to specified schedules.

Legal Services Provided

Legal Advice

Advising on the lease agreement, the financial claim, the termination request, and available legal options.

Legal Study

Analysing the agreement, contractual obligations, outstanding amounts, and the client’s legal position.

Judicial Representation

Representing the client before the courts and competent judicial authorities.

Drafting Pleadings and Memoranda

Preparing the appeal memorandum and other required legal submissions.

Legal Research

Conducting legal research relating to rental claims, termination, and contractual obligations.

Amicable Settlement

Managing the settlement process and reaching an agreement regulating payment of the outstanding rent and concluding the dispute.

Legal Insight

In lease disputes, the legal strategy is not limited to recovering unpaid rent. It may also require assessment of whether the contractual relationship should continue or be terminated, the consequences of default, the parties’ respective legal positions, and the available judicial and negotiated remedies.A first-instance judgment does not necessarily bring a matter to an end. Protecting the client’s rights may require careful review of the judgment and preparation of a structured appeal before the Court of Appeal.An amicable settlement can also be an effective outcome where it achieves the client’s principal objective, such as requiring the tenant to pay all outstanding sums according to a clear and defined payment schedule, while avoiding the cost and uncertainty of prolonged proceedings.

Legal Value Delivered to the Client

The Firm’s Experience in Real Estate and Lease Disputes

Atyar Advocates and Legal Consultants provides legal services in real estate and commercial disputes arising from lease agreements and real estate investment arrangements.The firm’s services include assessment of rental obligations, recovery of outstanding rent, lease termination claims, appeals against judgments, representation before the competent courts, and management of negotiations and settlements.The firm also advises on real estate investment, civil and commercial contracts, corporate disputes, arbitration, and financial claims connected with real estate assets.

Legal Team Responsible for This Matter

Dr. Turki altayyar

Prof. Dr. Turki Al-Tayyar

Founder and Managing Partner, and an expert in the judiciary, legal practice, arbitration, and university education, with more than 25 years of combined experience.

Mr. Salem Saad Al-Dosari

Partner specialising in administrative contracts, investment, and litigation, with extensive experience in administrative and commercial cases.

Practice Areas Related to This Matter

Need Legal Support in a Lease or Real Estate Dispute?

If your company is facing a dispute involving unpaid rent, termination of a lease agreement, or a financial claim connected with a real estate investment, Atyar Advocates and Legal Consultants provides legal advice, legal and judicial assessment, litigation, appeals, and amicable settlement support.

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