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Disputes and Litigation

Commercial Lawyer in Dammam Commercial Disputes

A business sometimes needs legal representation in a commercial dispute with another party, including a dispute that arises from a contractual relationship between them.

Service scope

We represent businesses in commercial disputes, including those arising from contracts, from preparing pleadings to pursuing the case before the competent court.

Situations where this may apply

  • A commercial dispute with another party requires representation before the competent judicial authorities.
  • Legal pleadings need to be prepared to set out your position in an ongoing commercial dispute.
  • A disagreement with a contracting party requires pursuing court proceedings.

Legal framework

The commercial courts hear commercial disputes under the Commercial Courts Law, and how facts are proven in these disputes is governed by the Law of Evidence:

  • The commercial courts have jurisdiction over disputes between merchants arising from their original or ancillary commercial activity, and over claims brought against a merchant in commercial contract disputes where the original claim exceeds SAR 100,000, alongside other matters the law names, including claims arising under the Companies Law. Article 16
  • The law allows a commercial case, from filing through to judgment, to be conducted electronically. Article 7
  • The claimant must prove the right it claims and the defendant may rebut it, and the facts to be proven must be relevant to the case, material to it, and admissible, the basic rule that determines who must produce evidence in a commercial dispute. Article 2

Common types of matters

  • A dispute with another party over performance under a commercial contract, or delayed payment of a financial obligation.
  • A disagreement between merchants arising from their ordinary commercial dealings.
  • The need to prepare pleadings or a memorandum to set out your position in an existing commercial case.
  • A question about which judicial authority has jurisdiction over a particular commercial dispute.

How a matter may proceed

  1. A commercial claim is filed by a statement of claim lodged with the competent court; for claims specified in the implementing regulations, written notice to the defendant demanding the right claimed at least fifteen days before filing, or conciliation and mediation, may be required first.
  2. The court circuit may assign one of its judges to prepare the case for hearing, including completing memoranda and documents and directing the parties to exchange them; proceedings and pleadings are in writing, and the circuit may also hear the parties orally.
  3. The case ends with a judgment, which a party against whom it is given, or whose claims were not granted in full, may appeal within thirty days of the date set for collecting a copy of the judgment, or ten days for judgments on jurisdiction and in urgent cases, with exceptions including small claims of no more than SAR 50,000 as specified by the Supreme Judicial Council.
  4. The Commercial Courts Law allows any of these steps to be conducted electronically.

Key considerations

  • The claimant must prove what it claims, so organizing supporting evidence and documents deserves attention early, not only once the matter reaches court.
  • The value of a claim can determine which judicial authority has jurisdiction over it, so establishing this early can save time and avoid procedural missteps later.
  • The statutory deadlines for filing a claim, responding to one, or appealing a judgment are fixed, and missing one can mean losing the right to take that step at all.

Documents typically needed

  • The contract or commercial agreement at the center of the dispute, in its signed form where one exists.
  • Correspondence relevant to the dispute, including any prior notice or demand.
  • Documents and evidence supporting each party's position on the disputed facts.
  • Commercial Registration or other documents establishing the parties' status as merchants.

Frequently asked questions

The commercial courts have jurisdiction over disputes between merchants arising from their original or ancillary commercial activity, and over claims brought against a merchant in commercial contract disputes where the original claim exceeds SAR 100,000, a value the Supreme Judicial Council may raise where needed, alongside other matters the Commercial Courts Law specifically names, including claims arising under the Companies Law and the Bankruptcy Law.

Yes. The Commercial Courts Law allows a case, from filing and registration through the exchange of memoranda and the issuance of judgment, to be conducted electronically, and the implementing regulations set out how.

The Law of Evidence recognizes a number of means of proof, including written documents, digital evidence, testimony, acknowledgment, presumptions, and expert opinion, each with its own rules under the law. Organizing the evidence and documents relevant to a dispute early, not only once it reaches court, serves a party's position when the case is heard.

In most cases, yes. Under the Commercial Courts Law, first instance judgments may be appealed unless a special provision says otherwise, except small claims of no more than SAR 50,000 as specified by the Supreme Judicial Council, and the appeal period is thirty days from the date set for collecting a copy of the judgment under Article 79. A judgment of an appeal circuit may be challenged before the commercial circuit of the Supreme Court in the circumstances Article 88 sets, such as a breach of Sharia or of the law or an error in applying it.

The court registers the statement of claim once it is complete, and the circuit may assign one of its judges to prepare the case for hearing, including completing memoranda and documents and directing the parties to exchange them. Proceedings and pleadings are in writing, the circuit may also hear the parties orally, and the case ends in a judgment.

Not necessarily. The commercial courts have jurisdiction over disputes the law specifies, including disputes between merchants arising from their original or ancillary commercial activity, and claims brought against a merchant in commercial contract disputes where the original claim exceeds SAR 100,000. The value of a claim can determine which judicial authority has jurisdiction over it, so establishing this early can save time and avoid procedural missteps later.

It may be required for some claims. For claims specified in the implementing regulations, written notice to the defendant demanding the right claimed at least fifteen days before filing, or conciliation and mediation, may be required first. Correspondence relevant to the dispute, including any prior notice or demand, is among the documents typically needed.

The burden of proof falls on the claimant, who must prove the right it claims, and the defendant may rebut it. The facts to be proven must be relevant to the case, material to it, and admissible.

Official references

The legal texts and official publications this content relies on.

Commercial Courts Law: jurisdiction of the commercial courts (official Arabic text)

Article 16
Published by:
Ministry of Justice
View official source

Commercial Courts Law: any procedure may be conducted electronically (official Arabic text)

Article 7
Published by:
Ministry of Justice
View official source

Law of Evidence: burden of proof (official Arabic text)

Article 2
Published by:
Ministry of Justice
View official source

Commercial Courts Law: right to object, appeal period and cassation (official Arabic text)

Articles 74, 78, 79 and 88
Published by:
Ministry of Justice
View official source

Law of Evidence: means of proof (official Arabic text)

Parts 2 to 10
Published by:
Ministry of Justice
View official source

Commercial Courts Law: pre-filing notice and conciliation, filing, hearing and case preparation (official Arabic text)

Articles 8, 19, 20, 21, 25 and 28
Published by:
Ministry of Justice
View official source

This is general information based on the cited laws when this page was prepared. It may change, and it is not legal advice on a specific case.