SCA 1278/2019
This case involved the failure to build a villa as agreed. The case did not involved merchants so was not considered a commercial activity which came under the court's jurisdiction.
Background
A claimant filed a case against a company before the court. He said that the company had agreed to build a villa for him and that he had paid 255876 Riyals in advance. He said that the company had failed to commit to her obligations. He requested the court to order the company to pay him the amount in addition to a delay fine.
Decision
The court said that Article 35 of Saudi Arabia Cabinet Decision No. 11/1435 stipulated that the commercial court considered disputes which existed between merchants. The court said that the current case was not related to commercial activity.
The court ruled that the consideration of the case did not fall under their jurisdiction.
Saudi Arabia Cabinet Decision No. 11/1435 upheld the ruling based on same grounds.