Faisal Ali Addabi

Summary of the Problem: the principle issued a formal power of attorney from court authorizing the agent to operate all the principle’s accounts and manage all his investments opened with the banks working in the state, and the POA expressly states that the principle is indebted to the agent and that the agent shall have the right to operate the principle’s accounts and manage his investments even after the principle’s death until the debt amount of 2 million dollars due to the agent from the principle is repaid in full. The principle died after one year from the date of issue of the POA. The banks had blocked all the late principle’s accounts and investments based on the heirs’ request and the agent was prohibited from operating any of the late principle’s accounts or managing his investments, the agent did not accept this, the problem aroused between the agent and the heirs and no amicable solution had been reached.

The agent filed a civil case against the heirs and the cause of action was as follows: the POA is still valid because it has been issued in favor of the agent and is intended to be executed even after the principle’s death. The agent requested the court to bind the heirs (the defendants) to allow him to operate all the late principle’s accounts and manage his investments until the debt amount due to the agent from the late principle is repaid in full. The heirs pleaded that the POA was terminated by the principle’s death.

Summary of the Solution: according to the applicable laws of most countries in the world, the POA terminates by the principle’s death unless the POA has been issued in favor of the agent or in favor of a third party or the POA is intended to be executed after the principle’s death. The legal solution to this problem is as follows: the court will issue a judgment in favor of the agent and allow the agent to operate the late principle’s accounts and manage his investments until the debt amount due to the agent from the late principle is repaid in full on the ground that the POA has been issued in favor of the agent and is intended to be executed after the principle’s death.

Advocate\Faisal Ali Addabi