SCA 1762/2019
This case involved amounts owed by a company for not paying a hotel for meals their guests had eaten. A key point was this company could not be considered a merchant - so the commercial court lacked jurisdiction.
Background
A company filed a case against a company before the court. The company requested the court to order the other company to pay 3493770 Riyals. The company said that the other company had hosted visitors in its hotel and failed to pay the amount owed for meals. The company provided the court with an email that validated its claim.
The court ruled that the other company should pay the mentioned amount.
The other company appealed the ruling before the court of appeal.
Decision
The court of appeal said that it concluded that the other company could not be considered as a merchant and therefore the case could not be considered by the commercial court in accordance with Article 35 of the Law of Advocacy.
The court repealed the appealed ruling and ruled that the consideration of the case did not fall under the jurisdiction of the commercial courts.