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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
Alaa Al Bataineh
Indeed, it has always been a sign of prestige and significant social status for a person to be chosen to mediate in order to resolve disputes. Additionally, Islamic teachings have traditionally prescribed mediation in order to resolve disputes in society. However, this cultural preference has not until recently been buttressed by robust structural frameworks. As such it would typically be undertaken on an ad hoc basis.
As far as legislation is concerned, Jordan has previously enacted the Mediation in Resolving Civil Dispute Act 2006 in order to formalize the process of mediation. However, before discussing this act one needs to briefly introduce the Jordanian judicial system. This provides a bird eye’s view of the matrix in which this Act operates. It is important to note that Jordan is still experimenting with its new mediation Act. There is therefore little empirical evidence that addresses the impact of this Mediation Act 2006 on the Jordanian judicial process.
The Mediation Act 2006 states that a “Judicial Management Centre” shall be established at the Court of First Instance, known as the “Mediation Management Centre”. This is comprised of judges from the Court of First Instance and the Magistrate Court. These are known as “Mediation Judges”, and supported by an administrative team. One must also clarify that when parties to a dispute come to register their cases at the Court of First Instance and/or Magistrate Courts situated at the Palace of Justice in Amman, the Registrar initially asks the parties if they want the case to be considered by the Mediation Management Centre – which is attached to the Palace of Justice.
The Chairman of the Judicial Council has the authority to designate what is known as “Special Mediators” – selected from retired judges, lawyers, professionals, etc. However, it is not yet clear why the law has designated the category of “Special Mediators”, as the parties themselves can appoint their own private mediators. The Mediation Act 2006 states that the Case Management Judge or the Judge of the Magistrate Court, after meeting with the parties in the dispute or their legal representatives, may refer the dispute, upon the request of the parties or after their approval, to the Mediation Judge or to a Special Mediator to resolve the dispute amicably. In all cases, the judge shall take into consideration, as much as possible, the parties’ agreement while naming the mediator. However, the role of the direct involvement of the parties of appointing private mediators is not overruled completely by the Mediation Act 2006. In this respect, the parties may appoint private mediators upon the approval of the Case Management Judge or the Magistrate Judge. From a procedural viewpoint the Mediation Act 2006 makes a distinction between the requirements when submitting the file to the Mediation Judge and the Special Mediators.
The mediation judge reserves the right to ask the parties to submit a brief memorandum of their claims or defenses. When submitting to the latter, parties need to submit such briefs within a period not exceeding 15 days as of the date of the referral. In this respect, Art.(4) of the Mediation Act 2006 states that:
“Parties to the dispute need to attend mediation sessions or their legal representatives, particularly if they were juridical persons. As far as the mediator is concerned, it is up to him/her to determine the date of each hearing and notify the parties in dispute or their representatives of dates and locations. The mediator shall meet with the parties in and their representatives and discuss with them the subject matter of the dispute including their requests and defenses. For this purpose, the mediator may give his/her opinion, evaluate the evidences, and present the legal grounds, precedents and other procedures, which will facilitate the mediation process. As far as time constraints are concerned, the mediator shall complete the mediation process within a period not exceeding three months as of the date of referring the dispute to him”.
If the mediator reached a settlement, totally or partially, he/she shall submit to the Case Management Judge or to the Magistrate Judge a report of such enclosed with the settlement agreement signed by both parties in the dispute to be ratified. This agreement shall be considered, after ratification, as final. However, if the mediator did not reach a settlement, he/she shall submit a report to the Case Management Judge or to the Magistrate Judge, indicating that the parties did not reach a settlement –provided that he/she clarifies in this report the scope of their compliance and their representatives in attending the mediation hearings.
If the mediation was not successful due to the absence of one of the parties or their representatives, the Case Management Judge or the Magistrate Judge may impose a fine on that party or their representative. However, upon the conclusion of mediation, the mediator needs to return to each party the memorandums and documents submitted, without retaining any copies thereof, subject to the legal liability. The mediation, which shall be confidential, once ratified by the parties, shall be considered final. Additionally, subject to nullity, even the Mediation Judge would not be able to review the decision.
As for the characteristics of the Jordanian System of Mediation, please note that:
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