SCA 1876/2019

This case involved the breach of a contracting contract. The court lacked jurisdiction as there was an arbitration clause.

Background

A company filed a case against a company before the court. The company requested the court to order the other company to pay them compensation. The company said that the other company had failed to commit to a contracting contract signed between the two parties and to deliver the agreed project on time.

Decision

The court said that the case documents revealed that the contract included an arbitration clause.

The court refused to consider the case due to the existence of the arbitration clause.

The Court of Appeal – Jeddah upheld the ruling based on same grounds.