SBG 4092/2015
This case involved a dispute over the sale of goods where there was an arbitration clause in the contract but one party refused to go to arbitration. It covered the steps taken if one of the parties refused to appoint an arbitrator.
Background
A company filed a case against a company before the court. It said that it had agreed with the other company supply it with salt but the latter dismissed the signed contract in illegal way. It said that it told the other company that it would resort to arbitration in accordance with Article 18 of the signed agreement but the other company refused the arbitration.
Decision
The court considered the documents of the case. The court said that Article 15 of Saudi Arabia Royal Decree No. M34/1433 stipulated that if the committee of arbitration is composed of three arbitrators, each party has to choose an arbitrator. The court said that if one of the parties fails to appoint an arbitrator within 15 days, the court should do so instead. The court said that the documents revealed that the company had failed to appoint an arbitrator.
The court dismissed the case.