ECC 4553/1999

This dispute involved compensation for a violated contract. The key issue was which court should have jurisdiction as the relevant parties did not live in the area covered by the first instance court.

Background

A claimant filed a case against defendants before the court requesting the defendants to pay him compensation for damage which had resulted from the violation of an agreed contract.

The defendants argued that the court has no mandate to consider the case.

The court dismissed the argument made by the defendants and ruled the defendants should pay the claimant the estimated compensation.

The defendants appealed the ruling before the court of appeal. The court upheld the appealed ruling.

Decision

The defendants appealed the ruling before the court of cassation and said in their grounds of appeal that the ruling has erred in the application of law because the court had dismissed their argument that Banha first instance court had no mandate to consider the case based on the argument that the second and third defendants lived in the same governance although the relevant parties in the case lived in a different governance.