The Jordanian Arbitration Law no.31 of 2001

This law shall be called (Arbitration Law no.31 of 2001) and shall come into force after

thirty days of publishing it in the Official Gazette.

1-What is the scope of application?

The provisions of this law shall apply to every conventional arbitration conducted in the Kingdom and relates to a civil or commercial dispute between parties of public or private law persons whatever the legal relationship to which the dispute is connected, whether contractual or not.

The provisions of this law shall apply to every arbitration existing at the time of its entry into force or commences thereafter even if it is based on an arbitration agreement prior to The entry into force of this law, provided that all previous procedures taken in accordance with any prior law shall remain valid.

2-What is the form of an arbitration agreement in Jordan?

-An arbitration agreement shall be in writing otherwise it is void. An agreement is in writing if it is contained in a document signed by the parties or in an exchange of letters, telegrams, faxes or telexes or other means of telecommunication which provide a record of the agreement. - The reference in a contract to the provisions of a standard contract or to an international convention or any other document containing an arbitration clause constitutes an arbitration agreement in writing, provided that the reference to such clause is clear in regarding that clause as a part of the contract.

-If the parties agree to arbitration while a court is reviewing the dispute, the court shall refer the dispute to arbitration and its decision shall be deemed as an arbitration agreement in writing.

4-What is the criteria of nominating arbitrators in Jordan?

-The two arbitrating parties are free to agree on the selection of arbitrators and on the manner and the date of their selection. Failing such agreement, the following procedures shall be followed:

1-If the arbitral tribunal consists of a sole arbitrator, he shall be appointed upon request of either party, by the competent court

2-If the arbitral tribunal consists of three arbitrators, each party shall appoint one arbitrator and the two arbitrators thus appointed shall appoint the third arbitrator. If either party fails to appoint his arbitrator within fifteen days following the date of receipt of a request to do so from the other party, or if the two appointed arbitrators fail to agree on the third arbitrator within fifteen days following the date of appointing the more recently appointed arbitrator, the appointment shall be made, upon request of either party, by the competent court. The third arbitrator, whether appointed by the two appointed arbitrators or by the competent court, shall preside the arbitral tribunal.

3-The procedures stated in paragraph (2) above shall be followed if the arbitral tribunal is composed of more than three arbitrators.

-If either party violates the agreed procedures of selecting the arbitrators, the two parties have not agreed on the way of performing such procedures, the two appointed arbitrators have not agreed on a matter that should be agreed on or if the third party fails to perform a function entrusted to him in this respect, then the competent court shall, upon request of either party, carry out the required measure or function.

-When selecting an arbitrator, the competent court shall take into account the conditions required by this law as well as those agreed upon by the parties, and it shall issue its decision on the appointment of the arbitrator expeditiously, and such decision shall be subject to no appeal.

5-What are the procedures that should be followed by the arbitral tribunal?

The two arbitrating parties are free to agree on the procedures to be followed by the arbitral tribunal, including their right to subject such procedures to the rules applied at any arbitral institute or center in the Kingdom or abroad; failing such agreement, the arbitral tribunal may, subject to the provisions of this law, select the rules of arbitral proceedings it deems appropriate.

6- What is the language of arbitration?

-The arbitration shall be conducted in Arabic unless otherwise agreed by the two parties or that the arbitral tribunal determines another language or languages to be used. Such agreement or determination shall apply to the language of evidence, written statements, oral hearings, as well as to any decision taken or any message sent or award rendered by the tribunal, unless the two parties’ agreement or the tribunal’s decision provides otherwise.

7- What is the place of arbitration?

The two parties are free to agree on the place of arbitration in the Kingdom or abroad; failing such agreement; the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case and the convenience of the parties in respect of such place. Nonetheless, the arbitral tribunal may meet at any place it considers appropriate to perform any of the arbitral procedures such as the hearing of the parties to the dispute, witnesses or of experts or for reviewing documents or the inspection of goods or property or for consultation among its members, or for any other thing.

8- What is the applicable law to the arbitrated dispute?

-The arbitral tribunal shall apply to the subject-matter of the dispute the legal rules agreed upon by the two parties, and if they have agreed to apply the law of a given State, the substantive rules in that law shall be followed and not its rules relating to conflict of laws.

-Failing an agreement by the parties on the legal rules applicable to the subject-matter of the dispute, the arbitral tribunal shall apply the substantive rules in the law it deems most closely connected to the dispute.

-In all cases, the arbitral tribunal shall, when adjudicating the subject-matter of the dispute, apply the terms of the contract which is the subject of the dispute, and shall take into account the customs applicable to the transaction, the prevailing usages and the (previous)~1~ dealing applied by the two parties.

-The arbitral tribunal may, if it has expressly been empowered to act as an amiable compositeur by an agreement between the two arbitrating parties, decide the dispute in accordance with the rules of justice and equity without complying with the law.

9-Are there time limitations, which an arbitrator must adhere to?

- The arbitral tribunal shall render the final award ending the entire dispute within the period of time as agreed upon by the two parties; failing such agreement; the award shall be rendered within twelve months as of the date of commencing the proceedings. In all cases, the tribunal may extend such period provided that the extension shall not exceed six months unless the two parties have agreed on a period of time exceeding that period.

-If the arbitral award has not been rendered within the period of time as provided previously, either party may apply to the president of the competent court to give an order setting another one period or more (for rendering the award) or terminating the arbitral proceedings. In the latter case, either party may bring an action before the court that originally has jurisdiction over the dispute.

10-What should be the form of an arbitration award?

-Unless otherwise agreed by the two parties, if the arbitral tribunal is- composed of more than one arbitrator, any decision of the tribunal including the final award shall be made unanimously or by a majority of all its members. However, a presiding arbitrator, if so authorized by the two parties or all members of the arbitral tribunal, may decide questions of procedure.

-The arbitral award shall be in writing and shall be signed by the arbitrators. If the arbitral tribunal is composed of more than one arbitrator, the signatures of the majority of the arbitrators shall suffice, provided that the reasons for the non-signing of the minority are stated in the award.

-The arbitral award shall state the reasons upon which it is based unless otherwise agreed by the two arbitrating parties or unless the law applicable to the arbitral proceedings does not require the mentioning of such reasons.

-The arbitral award shall include the names and addresses of the parties to the dispute, the names of the arbitrators, their addresses, nationalities and capacities, a summary of the arbitration agreement and of the disputant’s claims, sayings and documents, the text of the ruling (award), the date and place it was rendered, and the reasons on which the award is based when the citing of such reasons is mandatory. The award shall (also) determine the arbitrators’ fees, the costs of arbitration and the way of distributing such costs between the parties.

- The arbitral tribunal shall deliver to each of the two parties a copy of the arbitral award within thirty days of the date of rendering it.

- The arbitral award may not he published in whole or in part except with the approval of the two parties to arbitration.

11-When can a court intervene in an arbitration?

If, in the course of arbitral proceeding, a matter outside the scope of the arbitral tribunal’s jurisdiction arises, or if a document submitted to it is challenged for forgery and criminal proceedings in respect of that document or for any other criminal act have been instituted, the arbitral tribunal may continue reviewing the subject of the dispute if it deems that the adjudication on this matter, on the forgery of the document or on the other criminal act is not indispensable for issuing an award on the subject of the dispute. Otherwise, the tribunal shall decide the suspension of the proceedings until a final judgment is issued in this respect, and such decision entails the suspension of the time limit determined for rendering the arbitral award.

12-What are the cases that terminate the arbitration procedures?

1-Upon the issuance of the award ending the entire dispute.

2-Upon the issuance of an order ending the arbitral proceedings pursuant to article (33/a) of this law.

3-If the two parties agree on the termination of the arbitral proceedings.

4-If the claimant abandons the dispute submitted to arbitration, unless the arbitral tribunal decides, upon the respondent’s request, that the Latter has a genuine interest in the continuation of the arbitral proceedings until the dispute is adjudicated.

5-If the arbitral tribunal finds that the continuation of the arbitral proceedings has for any reason become useless or impossible.

6-Failure to reach the majority required for the issuance of the arbitral award.

13-Is it possible for the parties to request an interpretation for the confusing paragraphs of the award?

-Either of the two arbitrating party may, within thirty days following the date of receipt of the arbitral award, request the arbitral tribunal to interpret any ambiguity in the text of the award. The party requesting interpretation shall, before submitting the request to the tribunal, send a copy of such request to the other party.

-The interpretation shall be issued within thirty days following the date on which the request for interpretation was submitted to the arbitral tribunal. The tribunal may extend this period of time for further fifteen days if it deems such extension is necessary.

-The decision of interpretation is deemed to be a complementary part of the arbitral award and is subject to the rules applicable thereto.

14- On what grounds may an award be challenged?

Arbitral awards rendered in accordance with the provisions of this law may not be challenged by any of the means provided for in the Law of Civil Procedures. However, an action for nullity of the arbitral award may be instituted in accordance with the provisions of Article (49), (50) and (51) of this law.

-The cases of bringing such an action according to article 49 of this law:

1-If no valid arbitration agreement (and) in writing exists, or such agreement is terminated because of the expiration of its time limit.

2-If, at the time of concluding the arbitration agreement, either of the two arbitrating parties was (fully) incapacitated or minor pursuant to the law governing his capacity.

3-If either of the two arbitrating parties was unable to present his defence because he was not properly notified of the appointment of an arbitrator or of the arbitral proceedings or for any other reason beyond his control.

4-If the arbitral tribunal excluded the application of the law agreed upon by the parties to govern the subject-matter of the dispute.

5-If the composition of the arbitral tribunal or the appointment of the arbitrators was not in accordance with this law or the agreement of the two parties.

6-If the arbitral award rules on matters not included in the arbitration agreement or exceeds the scope of such agreement. Nevertheless, if parts of the award relating to matters subjected to arbitration can be separated from those not so subjected, then nullity shall apply only to the latter parts.

7-If the arbitral tribunal has not compiled with the conditions of the award in a manner affecting its content, or that the award was based on void arbitral proceedings affecting it.

-The competent court seized the action for nullity shall, by its own initiative, nullify the award in respect of what is in its content violating public order in the Kingdom, or if the subject-matter of the dispute is not capable of being subject to arbitration.

15-Are there time limitations for bringing an action for nullity of the arbitral award?

-An action for nullity of the arbitral award must be raised within thirty days following the date on which the arbitral award was notified to the party against whom it was rendered; and such action is admissible even if the party invoking nullity had waived his right to do so before the issuance of the arbitral award.

If the competent court approves the arbitral award, it must decide its- execution and such decision is final. If, otherwise, the court decides the nullity of the award, its decision is subject to challenge before the Court of Cassation within thirty days following the date of notifying that decision. The final decision nullifying the award results in extinguishing the arbitration agreement.

16-How is an arbitration award enforced?

- The application for enforcing the arbitral award shall not be accepted unless the period of time given to the action for nullity expires

- An application for enforcement shall be submitted to the competent court and accompanied with the followings:

1-A copy of the arbitration agreement.

2-the original award or a signed copy thereof.

3-An Arabic translation of the arbitral award authenticated by an accredited authority if the award was not issued in Arabic.

- The competent court shall view the application for enforcement without hearings, and shall order its execution unless it finds out that:-

1-The award includes violation of public order in the Kingdom. If that part in the award including such violation can be separated (from others), the court may order the execution of the other part(s).

2-The award was not duly notified to the party against whom it was rendered.

- A decision of the court ordering the enforcement of the arbitral award is subject to no appeal while the decision refusing the enforcement is subject to challenge before the Court of Cassation within thirty days following the date of notification (of that decision)(1). The approval of the decision refusing the ordering of enforcement shall result in extinguishing the arbitration agreement.