The difference between applying arbitration and judicial courts in Jordan

Assalm Alaikom,

Arab and justice greeting,

Dear Sir,

The answer to your question, in brief, is as follows:

First: Pursuant to the article (9) of the Jordanian Arbitration Law, only the natural or corporeal persons with full legal capacity can agree on arbitration with matters that can be subject to settlement as permitted by law.

The arbitration agreement shall be in writing, hence, the arbitration option is a binding agreement for parties to choose the way they desire to resolve any dispute that may arise in the future, and the parties can no more make a claim before the judicial courts.

Some companies prefer to resolve their disputes by arbitration to maintain the image and reputation of the company in front of others and rest of the companies.

In arbitration, the dispute resolution occurs in front of a panel outside the vicinity of the courts, since the courts carry out the deliberations and judgments for disputes between individuals and/ or companies in public hearings where any person can enter and hear what has been discussed.

On the other hand, arbitration panels convene in closed halls away from the vicinity of courts; accordingly, some companies prefer to apply arbitration as a means for keeping its administrative, financial and commercial secrets when disputes occur and avoid judicial courts as much as practicable.

Second, pursuant to the article (48) of the Jordanian Arbitration Law, the arbitral award is final and may not be appealed with any way of appealing whatsoever, except in exclusive cases defined by the arbitration law, whereas the verdicts in judicial courts can be appealed in the courts of appeal and cassation.

Consequently, some companies prefer to apply arbitration as a faster method for dispute resolution, even if its fees are higher than those of the judicial courts.

Kind regards,

For any further queries:

Mobile: 0799636832

Email: ahmadmesk@yahoo.com

Address: Jordan- Amman- Al Waha Roundabout- Al Madina Al Munawwara Street- Saad 5- Building 204- Office 410