JCC 5539/2022

This case involved the impact of a settlement agreement on the right to arbitration. A key issue was that the mayor of the municipality lacked capacity to sign the agreement.

Background

Article 12(a) of Jordan Law No. 31/2001 stated: “The court to which a dispute is referred that is subject to an arbitration agreement shall dismiss the case if the defendant raises this objection before entering into the merits of the case.”

The legislator had affirmed the distinctiveness and independence of the arbitration system from any other dispute resolution system. The court before which the case was presented must dismiss the case when the arbitration objection was raised and its existence and validity were established, compelling the parties to resort to arbitration.