Commercial legal proceedings relating to claims by lawsuits before the statutory commercial circles and commercial courts
On April 9, 2020, AD corresponding to 15 Shazban 1441 AH, a new commercial court law was approved in the Kingdom of Saudi Arabia, after the issuance of the royal decree for approval as per Decision No. M/93. The Minister of Justice issued the approval with the executive implementing regulations of the said new law on commercial courts, on June 22, 2020, AD corresponding to 1 Dhu Al-Qi’dah 1441 AH.
Enactment of the said law and implementing regulations made thereunder is to regulate all matters and issues relating to commercial transactions like for the purpose of resolution of disputes arising between the parties pertaining to their commercial rights through filing the relevant suits for obtaining judgements or orders from commercial courts. At the perusal of the claim suit and proceedings filed by the aggrieved parties, the concerned court and statutory authorities are likely to pass judgments and orders after giving the opportunity of hearing to the concerned parties. As such, concerned parties are in need of proper advice to take legal proceedings for relief as per the new law and the related implementation regulations promulgated by the Kingdom. In the event of any such requirement of legal assistance pertaining to such claims by the aggrieved party before the courts or statutory authorities having territorial jurisdiction to entertain the claims and to pass orders or judgements granting the relief in accordance with law it is absolutely necessary to avail the services of the legal experts having experience in representing and conducting the respective cases of claim by pleading evidence. Besides the same, it is also necessary to obtain legal advice and opinion prior to filing any application before the courts or authorities. It is important to note that after the enactment of the aforesaid new commercial law and regulations, now it is possible to claim relief by filing relevant proceedings of claim and for letting in evidence for the proof through all means including electronic evidence such as email, etc. for the fresh proposed claims and also for getting relief in the pending commercial proceedings before the other legal forums including chambers of commercial courts.
Under the above circumstances it is desirable to get the legal services and assistance to get proper effective prosecution of legal claim petitions in the appropriate forums for getting proper relief by availing the services of legal experts in the field for a successful result.
As such, we are available to have detailed discussions about commercial cases which are unable to be properly proceeded with and also to pursue further claims by way of review, appeal and DE novo hearings in cases which are not accepted, submission of proper judicial proceedings which were unable to be filed, and for pleadings that could not take place. It can be now possible to pursue with the help of a lawyer, administrative representatives, or employees of legal departments, having legal capability such as commercial companies, in order to substantiate the importance of the lawyer’s role in some commercial cases for bringing forward proper objections and requests.
Important guidance is provided hereunder:
Commercial cases that can only be filed through a lawyer:
The filing of all cases and appeals in which commercial circles and commercial courts are competent to hear:
- In disputes that arise between merchants in relation to their original or affiliated business, if a judgment is issued. The attorney of the party against whom the judgment was issued may object and file a request to appeal against it.
- In case of disputes between partners in a joint-venture company, the lawyer on the request of the aggrieved party has the right to file a request to appeal against the judgment issued in these disputes, whenever his client against whom the ruling is issued requests for the same.
- In case of lawsuits and violations arising from the application of the provisions of the companies’ law.
- In the case of lawsuits and violations arising from the application of the provisions of the bankruptcy law.
- In case of claims and violations arising from the application of the provisions of intellectual property laws. A request to appeal the judgment was submitted through a lawyer appointed by the party against whom the judgment was issued.
- Lawsuits and violations arising from the application of other commercial laws. The lawyer may also file an appeal against the ruling or decision issued against his representative.
- Generally, a request for cessation or a request for review may not be filed except through a lawyer.
Lawyers may not initiate the case or file a request to appeal a judgment or decision issued by the court, in the following cases:
- Lawsuits filed against the merchant in commercial contract disputes if the original claim’s value in the lawsuit is more than 100,000 SAR
- Simple lawsuits of no more than 50,000 SAR. In addition, the lawyer appointed by the party against whom the ruling or decision is issued in the lawsuit cannot file a request to appeal the ruling or decision.
- Cases and requests related to the judicial guard, the trustee, the liquidator, the appointed expert, and the like whenever the dispute is related to a case that is considered by the court.
- Lawsuits for compensation for damages arising from a case previously decided by the court.
Pleading before the commercial circle or the Commercial Court through the lawyer:
The pleading in front of the commercial department, whether the court of first instance or appeals, must be in writing, as it can be from a distance (electronic), and through a lawyer, in the following cases, violations and disputes:
- Lawsuits and disputes arising between merchants due to their original or affiliated business, lawsuits filed with the merchant in commercial contract disputes, lawsuits and requests related to the judicial guard, the trustee, the liquidator and the appointed expert, and the like, when the dispute relates to a lawsuit of the court’s consideration, and claims for compensation for damages arising from a previously decided suit from the court, when the original claim value in these cases was more than 10 million Saudi riyals.
- Lawsuits and disputes of partners in the company of speculation companies (speculative companies are the companies which are involved in commercial transactions which are highly risky), lawsuits and violations arising from the application of the provisions of the companies’ law, lawsuits and violations arising from the application of the provisions of intellectual property laws, and lawsuits and violations arising from the application of other commercial laws, when the original claim value in those lawsuits and violations and disputes exceeds 2 million riyals.
- Cases and violations arising from the application of the provisions of the bankruptcy law, whenever the case related to the request to open a financial re-organization procedure.
- Generally, pleadings and submitting documents in the commercial circle of the Supreme Court, shall be through a lawyer.
The lawyer’s role in commercial cases is summarized as follows:
- Establishing business suits is defined by law and detailed in its regulations.
- submitting a request to appeal decisions issued by the court,
- Exchanging documents with other parties in the dispute.
- Pleading before commercial circles and the commercial courts.
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