New Saudi guidelines set for resolution of pandemic-related contractual cases

New Saudi guidelines set for resolution of pandemic-related contractual cases

RIYADH: New rules outlined by Saudi Arabia's Supreme Court (SC) to help the Kingdom's judiciary deal with contractual disputes related to the coronavirus disease (COVID-19) pandemic will help spur economic recovery and offer businesses a transparent solution to resolving disagreements. Dr. Osama Ghanem Al-Obaidy, a professor of law at the Institute of Public Administration in Riyadh, told Arab News that the SC had clarified rules that lower courts must follow when considering such cases. "Also, the president of the Supreme Council of Magistracy issued an order directing courts and judges to resume consideration of pandemic-related disputes," he said. Two specific court circuits “” general circuits 50 and 51 “” have been designated to look at contracts affected by the COVID-19 health crisis, and new and resumed cases will be forwarded and distributed equally between the two circuits. The SC's decision applies to disputes relating to construction, supply, leasing, and other contracts concluded before the start of the pandemic and excludes those where a government agency was a party, Al-Obaidy added. Under the SC rules, the courts will intervene where performance of the contract becomes practically impossible or if it cannot be implemented. In such cases, the court will treat the