Legal Liability of Vehicle Repair Garages in the UAE: An In-Depth Analysis

I. The Contractual Basis of Liability (The Contract of Work)

The repair and maintenance contract is classified under UAE law as a Contract of Work, according to the provisions of Federal Law No. (5) of 1985 concerning the Civil Transactions Law and its amendments.

1. Warranty of Workmanship (Article 878)

Article (878) of the Civil Transactions Law imposes an explicit obligation on the contractor (the garage) to warrant the results of its work. The Article stipulates that:

"The contractor shall warrant any damage or loss resulting from his act and work, whether such damage or loss arises from his negligence or not."

Legal Analysis:

• Contractor's Liability: This Article establishes the Contractor's Liability for Warranty, which is characterized as Objective Liability or Strict Liability for defects arising from the work. If the repair process results in damage to the vehicle or a defect in the work, the garage is liable for compensation, even if its direct negligence is not proven, unless the damage is due to an external cause beyond the garage's control.
• Compensation: The warranty covers compensation for any damage or loss incurred by the vehicle as a result of the garage's work.

2. Responsibility for Safekeeping Materials (Article 875)

If the vehicle owner supplies the necessary spare parts for the repair, the garage is obligated to safeguard these materials. Article (875/2) stipulates that:

"The contractor shall exercise the care of an ordinary person in preserving the materials supplied by the employer and shall observe the principles of the art in their use."

Legal Analysis:

• Care of an Ordinary Person: The garage must exercise the necessary care to preserve the parts supplied by the owner, which is the care of an ordinary person.
• Return of Excess: The garage is obligated to return any remaining materials to the owner and is liable for any damage or loss incurred to those parts.

II. The Custodial Basis of Liability (The Contract of Deposit)

Upon the vehicle's handover to the garage, an additional legal relationship arises: the Contract of Deposit, which governs the garage's obligation to safeguard the vehicle as a trust.

1. Deposit as a Trust (Article 966)

The vehicle deposited with the garage is considered a trust (Amanah), and this entails strict custodial obligations. Article (966) states that:

"The deposit shall be a trust in the hands of the depositary, and he shall be liable for its guarantee if it perishes due to his act or his negligence in preserving it."

Legal Analysis:

• Obligation of Preservation: The garage (the depositary) is obligated to preserve the vehicle with the same care it exercises in preserving its own property, while observing what has been agreed upon or what is customary.
• Liability for Loss or Damage: The garage is liable for the loss or damage of the vehicle if it results from its act or negligence in preservation, such as theft or fire due to negligence in security and safety procedures.

2. Prohibition of Unauthorized Use (Article 969)

The law prohibits the garage from using the deposited vehicle without explicit permission from the owner. Article (969) stipulates that:

"The depositary may not use the deposit or establish a right over it for a third party without the permission of the depositor. If he does so, he shall be liable for its guarantee if it perishes or its value decreases due to the use."

Legal Analysis:

• Aggravated Liability: If the garage uses the vehicle without permission (such as driving it for personal errands or unnecessary test drives) and causes an accident or a decrease in its value, its liability becomes aggravated liability, obligating it to guarantee the loss or decrease in value even if it was not due to direct negligence.

III. Consumer Protection (Federal Law No. 15 of 2020)

Federal Law No. (15) of 2020 concerning Consumer Protection has strengthened the rights of vehicle owners as "consumers" of the service and imposed additional obligations on garages as "providers."

The Law imposes several key obligations on the service provider (the garage) and grants corresponding rights to the consumer (the vehicle owner):

• Service Quality and Warranty (Article 10(2)): The garage is obligated to guarantee the quality of the service and ensure it is free from defects for a reasonable period. The consumer, in turn, has the right to a full or partial refund or to have the service properly re-provided if a defect is found.
• After-Sales Commitment (Article 15): The garage must commit to providing after-sales services, including repairing defects or maintenance, or offering a refund or replacement within a specified period. This guarantees the consumer the right to appropriate compensation or remedy should a flaw appear.
• Voidance of Exclusion Clauses (Article 21): Any contractual term that seeks to exempt the provider from its basic legal obligations or unduly harms the consumer is considered void. This means a garage cannot legally insert a clause disclaiming liability for its own negligence or default.
• Right to Compensation (Article 24): The garage is obligated to compensate the consumer for material and moral damages resulting from the defective service. This grants the consumer the explicit right to claim compensation for all resulting losses, such as the cost of correct repairs or the diminution in the vehicle's value.

Summary of Consumer Protection Law:

This law ensures that consumer rights are enforceable, and any attempt by a garage to include contractual terms that violate these rights or exempt it from liability for negligence is considered legally void.

IV. Practical Steps to Protect Owner's Rights 

In light of this legal framework, vehicle owners must take practical steps to ensure their rights are protected, especially in the Emirate of Dubai:

1. Comprehensive Documentation: All documents related to the maintenance must be kept, including the Work Order, the Estimate, and the Final Invoice. The condition of the vehicle upon handover and collection should be documented with photographs.
2. Administrative Complaint: Consumers in Dubai can file a formal complaint with the Department of Economy and Tourism (DET), which handles consumer protection complaints against service providers.
3. Expert Report: In case of a technical dispute regarding the quality of the repair or the cause of the damage, obtaining a neutral technical expert report (from an accredited entity) is crucial to proving technical error or default.
4. Judicial Recourse: If negotiations and administrative complaints fail, the owner can resort to the judiciary, either by issuing a Legal Notice to the garage or filing a Civil Lawsuit to claim compensation, which may include the cost of correct repairs, the vehicle's market value, and any other related losses.

Conclusion

UAE legislation, through the Civil Transactions Law and the Consumer Protection Law, affirms the dual liability of vehicle repair garages: contractual liability for the quality of workmanship, and custodial liability for the safety of the vehicle. This strong legal protection provides vehicle owners with a solid basis to claim their rights. 

Written by:

Mahmoud Khashaba | Alhajeya Alnoobi Advocates & Legal Consultants