Jordan Arbitration Guide

Last verified on 04 March 2024

The Hashemite Kingdom of Jordan has established itself as a conducive and supportive jurisdiction for international arbitration, underpinned by its comprehensive legal framework, the Law No. 31 of 2001, commonly referred to as the “Arbitration Law.” Since its enactment on 16 July 2001, the Jordanian Arbitration Law has undergone several amendments, enhancing its alignment with international standards and best practices in arbitration. The foundation of this law is heavily influenced by the Egyptian Arbitration Act No. 27 of 1994, which itself is rooted in the principles of the UNCITRAL Model Law of 1985. The amendments introduced in 2018 have been particularly pivotal, incorporating elements from the 2006 revisions of the UNCITRAL Model Law, thereby offering greater clarity on previously ambiguous provisions and fortifying the legal framework for arbitration in Jordan.

The Jordanian Arbitration Law is expansive and inclusive, applying to all conventional arbitrations conducted within the borders of Jordan, as well as to any arbitration proceedings where the parties have designated the law as their governing framework, regardless of the nature of the legal relationship at the core of the dispute. This is explicitly articulated in Article 3(a) of the Arbitration Law, highlighting the law’s broad applicability.

Structured methodically, the Jordanian Arbitration Law is divided into several key chapters, each addressing critical aspects of the arbitration process:

General Provisions (Articles 2-8): Lays the foundational principles and definitions essential for the understanding and application of the law, setting the stage for a comprehensive arbitration framework.

Arbitration Agreement (Articles 9-13): Delves into the specifics of arbitration agreements, detailing the requirements for their validity, form, and content, thus ensuring that the parties’ intent to arbitrate is clearly established and legally recognized.

The Arbitral Tribunal (Articles 14-23): Specifies the composition and formation of the arbitral tribunal, including the appointment, challenges, and replacement of arbitrators, thereby ensuring the tribunal’s impartiality and competence.

The Arbitral Proceedings (Articles 24-35): Outlines the procedural rules governing the conduct of arbitration, from the commencement of proceedings to the presentation of evidence and hearings, ensuring that the process is fair, efficient, and tailored to the parties’ needs.

The Arbitral Award and Termination Proceedings (Articles 36-47): Addresses the culmination of the arbitration process, detailing the requirements for arbitral awards, their form, content, and the circumstances under which the proceedings may be terminated.

Nullity of Arbitral Award (Articles 48-51): Provides the grounds and procedures for challenging the validity of an arbitral award, ensuring that there are mechanisms in place to address potential errors or injustices in the arbitral process.

Enforcement of Awards (Articles 52-57): This final chapter focuses on the recognition and enforcement of arbitral awards, both domestic and international, ensuring that the outcomes of arbitration are respected and implemented effectively.

Jordan’s accession to the New York Convention (NYC) on the Recognition and Enforcement of Foreign Arbitral Awards marks a significant commitment to international arbitration standards. The Convention came into force for Jordan on 13 February 1980, following its ratification through the Council of Ministers’ Decision in 1979 and subsequent publication in the Official Gazette No. 3585 on 16 November 1980. This adoption signifies Jordan’s integration into a global framework facilitating the cross-border enforcement of arbitral awards, enhancing the country’s appeal as a jurisdiction supportive of international commercial arbitration.

Jordan has not made any reservations under Article I(3) of the NYC regarding reciprocity or commercial relationships. This approach reflects Jordan’s broad endorsement of the Convention’s principles, ensuring the NYC’s applicability to a wide range of arbitral awards without restrictions based on the nationality of the parties or the nature of the commercial relationship involved.

Regarding the scope of the NYC within Jordan, the Convention applies to arbitral awards made in the territory of another State, as well as to awards not considered domestic in the State where recognition and enforcement are sought, as per Article I(1) of the NYC. However, in Jordan, a distinction akin to that intended in Article I(1) of the NYC does not exist. All awards issued by tribunals seated in Jordan are classified as domestic awards. This classification underscores a straightforward approach to the categorization of arbitral awards within Jordan’s legal framework, focusing on the seat of the arbitration as the determinative factor.

The absence of reservations and the direct applicability of the NYC to foreign arbitral awards underscore Jordan’s commitment to upholding international arbitration norms and practices. By aligning with the NYC, Jordan ensures that foreign arbitral awards are recognized and enforced with predictability and efficiency, fostering a legal environment conducive to international commerce and dispute resolution.

Jordan’s active participation in a broad array of multilateral conventions and treaties reflects a comprehensive commitment to the international legal framework governing arbitration and investment. This extensive engagement not only enhances the legal infrastructure for arbitration within Jordan but also significantly contributes to the country’s attractiveness as a destination for international business and investment. By acceding to these instruments, Jordan ensures that it remains aligned with global standards and practices in arbitration and investment protection, fostering a conducive environment for international commerce.

The New York Convention of 1958 and the ICSID Convention of 1965 stand as foundational pillars in Jordan’s arbitration framework, offering clear procedures for the recognition and enforcement of arbitral awards. These conventions provide assurance to international parties that their arbitration outcomes will be respected and enforceable in Jordan, thereby instilling confidence in the country’s dispute resolution mechanisms.

Jordan’s commitment to regional legal cooperation is further exemplified by its participation in the Arab League Convention and the Riyadh Arab Convention on Judicial Cooperation. These agreements facilitate a streamlined process for the enforcement of judgments and arbitral awards across the Arab region, enhancing Jordan’s role as a hub for dispute resolution within the Middle East.

In addition to these foundational treaties, Jordan’s involvement in Investment Related Instruments (IRIs) and Treaties with Investment Provisions (TIPs) demonstrates its broader commitment to creating a favorable investment climate. Instruments such as the TRIPS Agreement and the GATS under the WTO framework, alongside various Free Trade Agreements (FTAs) and investment treaties, underscore Jordan’s dedication to safeguarding investors’ rights and promoting liberalized trade and investment flows. These agreements help in harmonizing Jordan’s trade and investment laws with international standards, thereby reducing barriers to international business activities.

Furthermore, Jordan’s ratification of conventions such as the Inter-Arab Investment Guarantee Corporation agreement and its participation in the Energy Charter Treaty process reflect its proactive stance in protecting investments and ensuring energy security, both critical components of a stable and attractive investment environment.

Collectively, Jordan’s adherence to these multilateral conventions and bilateral treaties serves multiple purposes. It enhances the legal certainty and predictability for international arbitration, provides robust mechanisms for the protection of investments, and aligns Jordan’s legal system with international norms and standards. This all-encompassing approach to international legal cooperation significantly benefits international arbitration in Jordan by ensuring that the country is perceived as a reliable, arbitration-friendly jurisdiction that is fully integrated into the global legal and economic order.

Jordan’s extensive network of Bilateral Investment Treaties (BITs) underscores its commitment to fostering an investor-friendly environment and promoting foreign direct investment. These treaties are instrumental in providing legal protection to investors from the contracting states, facilitating a stable and predictable legal environment for investment activities.

The Jordan – Japan BIT, signed in 2018 and entering into force in 2020, exemplifies Jordan’s ongoing efforts to strengthen investment ties with countries outside the Middle Eastern region. This treaty, like others, typically includes provisions on the promotion and protection of investments, ensuring fair and equitable treatment, protection from expropriation, and mechanisms for the resolution of disputes between investors and the state.

Despite the signing of the Jordan – Saudi Arabia BIT in 2017 and the Jordan – Turkey BIT in 2016, these treaties have not yet entered into force, highlighting the sometimes complex and protracted process of ratification. Nevertheless, the signing of these treaties signals Jordan’s intent to deepen economic cooperation and encourage mutual investments with these key regional players.

The Armenia – Jordan BIT, which came into effect in 2017, and similar treaties with countries such as Estonia, Cyprus, Canada, and the United Arab Emirates, that have entered into force, reflect Jordan’s broad approach to establishing a widespread network of investment treaties. These treaties not only cover traditional Western investment partners but also extend to emerging markets and regional neighbors, illustrating Jordan’s strategic approach to diversification in its economic relations.

Notably, the BITs with European countries, including the Estonia – Jordan BIT and the Cyprus – Jordan BIT, have facilitated Jordan’s economic engagement with the European market, providing Jordanian and European investors with assurances regarding the safety and treatment of their investments.

On another front, the Jordan – Iraq BIT and the Jordan – State of Palestine BIT, though signed, have not entered into force, indicating ongoing discussions or the need for further procedural steps to bring these treaties into effect. This situation underscores the dynamic nature of international investment agreements and the need for continuous diplomatic engagement to fully operationalize these agreements.

Jordan’s approach to bilateral investment treaties is characterized by its inclusive engagement with a diverse set of countries, reflecting its open economic policy and the recognition of the importance of foreign investment for economic growth. Through these treaties, Jordan aims not only to attract foreign investment but also to protect its investors abroad, contributing to the overall development and diversification of the Jordanian economy.

In the context of global and regional economic integration, Jordan’s network of BITs plays a critical role in positioning the country as a competitive destination for investment. These treaties, by establishing clear legal frameworks for investment, help mitigate risks associated with cross-border investment activities, thereby enhancing investor confidence and contributing to the economic prosperity of Jordan and its investment treaty partners.

The legal framework governing arbitration proceedings in Jordan is established under the Jordanian Arbitration Law No. 31 of the year 2001, along with its subsequent amendments. This legislation draws inspiration from the Egyptian Arbitration Act, which itself is modeled on the UNCITRAL Model Law, signifying Jordan’s alignment with internationally recognized principles and practices in arbitration.

The 2018 amendments were a pivotal moment for the Jordanian Arbitration Law, enhancing its congruence with the UNCITRAL Model Law, albeit with certain distinctive features tailored to Jordan’s legal environment. One notable aspect is the Law’s comprehensive scope, encompassing both international and domestic arbitration proceedings conducted within Jordan. It mandates the formation of arbitral tribunals consisting of an odd number of arbitrators, ensuring decisiveness and clarity in arbitral decision-making.

A unique procedural aspect under the amended Law is that any preliminary ruling on the tribunal’s jurisdiction can only be contested through an annulment application against the final award. This provision streamlines the process and focuses disputes on substantive issues rather than prolonged jurisdictional debates.

The power of arbitral tribunals to issue interim measures is not presumed but requires explicit authorization through the parties’ agreement. This ensures that the use of such measures respects the parties’ autonomy and their preferences for how the arbitration should proceed.

In cases where parties have not specified the applicable law, the tribunal is directed to apply the law most closely connected to the dispute, guiding the tribunal towards a legal framework that is most relevant and appropriate for resolving the specific issues at hand.

Innovatively, the Jordanian Arbitration Law embraces modern technology by expressly allowing virtual procedural meetings and hearings, reflecting a forward-thinking approach to arbitration that accommodates the evolving needs of the legal and business communities.

Article 3(a) of the Arbitration Law clearly articulates its applicability, stating that it governs any consensual arbitration with its seat in Jordan or any arbitration agreed to be subject to this Law. It covers a broad spectrum of disputes, whether civil or commercial, between parties of public or private law, and regardless of the contractual nature of the relationship in dispute.

Through these provisions, Jordan’s Arbitration Law facilitates a robust and flexible arbitration framework. It aligns with international standards while incorporating specific adaptations that reflect the unique aspects of Jordan’s legal system and the practical requirements of arbitration practitioners and parties in the region.

The influence of the UNCITRAL Model Law on Jordan’s Arbitration Law is evident in its approach to international standards and best practices. This alignment with UNCITRAL standards makes Jordan an attractive jurisdiction for international arbitration, providing a familiar and predictable legal environment for international parties. The law facilitates the enforcement of foreign arbitral awards in Jordan, in accordance with the New York Convention, to which Jordan is a signatory. This international compatibility underscores Jordan’s commitment to being a part of the global arbitration community.

Certain provisions in Jordan’s Arbitration Law are mandatory and cannot be waived by the parties. These include provisions related to the enforcement of arbitral awards, the grounds for setting aside an award, and the arbitrability of disputes. These mandatory provisions ensure the integrity of the arbitration process and the enforceability of its outcomes.

In Jordan, the legal framework does not establish a specialist arbitration court dedicated exclusively to handling arbitration-related matters. Instead, the Jordanian Arbitration Law allocates specific responsibilities and competencies to existing judicial entities within the Jordanian legal system, ensuring that arbitration proceedings are supported by the national courts in a structured manner.

The Court of Appeal holds a pivotal role under the Jordanian Arbitration Law, being designated as the competent authority for overseeing certain crucial aspects related to arbitration. This includes providing judicial assistance to arbitration proceedings, such as facilitating the collection of evidence, and the appointment of arbitrators in instances where the parties fail to reach an agreement or when the agreed-upon method for their appointment encounters obstacles. This designation underscores the supportive stance of the Jordanian legal system towards arbitration, ensuring that the arbitration process operates smoothly and efficiently.

Further emphasizing the structured approach to arbitration, the Court of Cassation, Jordan’s highest court, is vested with the authority to handle the annulment and enforcement of local arbitral awards. This delineation of responsibility ensures that appeals against or challenges to arbitral awards are addressed at the highest judicial level, providing a clear and definitive legal recourse for parties involved in arbitration.

For foreign arbitral awards, the jurisdiction to oversee their enforcement is assigned to the Court of First Instance. This arrangement facilitates the implementation of international arbitration agreements and the recognition of arbitral awards issued outside Jordan, in line with Jordan’s obligations under international conventions such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

The overall familiarity of Jordanian courts with arbitration and the supportive attitude of the legal system towards arbitral proceedings are reflective of Jordan’s commitment to arbitration as a viable and effective method of dispute resolution. The legal framework, through the allocation of arbitration-related responsibilities to established courts, ensures that arbitration in Jordan is conducted within a reliable and supportive judicial environment. This not only reinforces the confidence of national and international parties in choosing arbitration as a dispute resolution mechanism but also promotes Jordan as an arbitration-friendly jurisdiction.

In Jordan, the autonomy granted to parties in arbitration extends to the selection of the substantive law that governs their dispute. This principle is enshrined in the arbitration framework, empowering parties to align the legal basis of their arbitration with the specific needs and nuances of their contractual relationship. In instances where the parties have not explicitly chosen the applicable substantive law, the arbitral tribunal is tasked with selecting the law based on conflict of laws principles that it determines to be most relevant. This approach ensures that the arbitration process remains flexible and responsive to the diverse legal landscapes that may influence the dispute.

Article 36 of the Jordanian Arbitration Law outlines the tribunal’s obligations in applying substantive law. According to this provision, if the parties have reached a consensus on the application of a specific legal system, the tribunal is bound to apply the substantive aspects of that legal system, expressly excluding its conflict of laws rules. This direct application of substantive law underscores the commitment to honoring the parties’ choice and the principle of party autonomy that is central to arbitration.

In the absence of an agreement between the parties regarding the governing legal rules, the tribunal is endowed with the discretion to apply the substantive law of the legal system it deems most closely connected to the dispute. This ensures that the tribunal can select a legal framework that is appropriately tailored to the specificities of the case, fostering a fair and just resolution.

Furthermore, the tribunal is mandated to consider the terms of the contract at the heart of the dispute, along with any relevant trade customs, established practices, and previous dealings between the parties. This comprehensive approach to applying substantive law not only aligns with the factual and commercial context of the dispute but also reflects a commitment to ensuring that the resolution is grounded in the realities of the parties’ relationship and the broader commercial environment.

Additionally, the law provides for the possibility of the tribunal acting as an “amiable compositeur” or deciding the dispute based on principles of equity, provided the parties have expressly granted it such authority. This option allows the tribunal to depart from strict legal prescriptions and to issue a decision based on fairness and equity, further emphasizing the flexible and party-driven nature of arbitration.

Through these provisions, the Jordanian Arbitration Law facilitates a dispute resolution process that is adaptable, equitable, and attuned to the parties’ preferences and the substantive complexities of their dispute.

In the Hashemite Kingdom of Jordan, the scope of disputes that can be referred to arbitration is broad, encompassing civil, commercial, contractual, or non-contractual disputes. The Arbitration Law delineates between subjective and objective arbitrability to determine which disputes are amenable to arbitration. Subjective arbitrability concerns the capacity of parties to enter into an arbitration agreement. Under this provision, only natural or juridical persons possessing the legal capacity to dispose of their rights can validly conclude an arbitration agreement. Any agreement entered into by parties lacking this capacity is deemed void.

Objective arbitrability, on the other hand, pertains to the nature of the disputes themselves. The law stipulates that matters not capable of settlement, or compromise, are deemed non-arbitrable. While the Arbitration Law does not exhaustively list such matters, it generally includes disputes of a criminal and administrative nature, as well as those specifically reserved for resolution by the courts or state agencies. In addition, the law expressly states that issues related to employment contracts and consumer contracts, especially those based on pre-printed forms, cannot be subject to any prior agreement to arbitrate. Such provisions are deemed void, reflecting a protective stance towards employees and consumers by ensuring their access to judicial recourse.

The principle of non-arbitrability is further entrenched in other legislative texts where exclusive jurisdiction is attributed to Jordanian courts. A prime example is found within the Maritime Law, which accords Jordanian courts exclusive jurisdiction over disputes arising from bills of lading and contracts for the carriage of goods. Any agreement that deviates from this provision is considered void. However, the judiciary has recognized arbitration clauses in contracts governed by the Hamburg Rules of 1978, illustrating the precedence of international treaties and conventions over national legislation, provided these international agreements do not contravene public order.

The issue of non-arbitrability is closely linked to public order considerations within the Jordanian legal system. To safeguard against the arbitration of disputes deemed non-arbitrable, the Arbitration Law empowers the Court of Cassation to annul arbitration awards ex officio if the subject matter of the dispute falls within the realm of non-arbitrability. This provision underscores the importance of distinguishing between arbitrable and non-arbitrable matters, ensuring that arbitration remains a viable and appropriate method of dispute resolution within its legally defined boundaries.

In the Hashemite Kingdom of Jordan, the validity and enforceability of an arbitration agreement are contingent upon its execution in writing. The definition of what constitutes “in writing” under the Arbitration Law is comprehensive, embracing a variety of forms. This includes any documentation signed by both parties involved, encompassing both paper and electronic correspondence. Furthermore, it extends to any means of communication that can be regarded as a record of the agreement, provided the receipt of such communication can be evidenced. Moreover, an arbitration agreement may also be validly incorporated by reference to another document that contains such an agreement, except in instances where the parties have explicitly excluded this form of incorporation.

Regarding the scope of arbitration agreements, Jordanian law accommodates a broad range of disputes. An arbitration agreement can encompass both existing disputes, known as a submission agreement, and disputes that may arise in the future. Notably, parties retain the flexibility to commit their dispute to arbitration even after initiating litigation before the courts. In these circumstances, the submission agreement must explicitly define the subject matter of the dispute to be arbitrated; otherwise, it is deemed void. Should the court decide to refer the dispute to arbitration, such a decision is deemed sufficient, obviating the need for an additional submission agreement.

This flexibility underscores the Jordanian legal framework’s emphasis on arbitration as a viable and encouraged method of dispute resolution. Additionally, it is noteworthy that Jordanian law does not impose any special formalities for arbitration agreements involving the state or any of its entities, highlighting the state’s openness to arbitration as a dispute resolution mechanism. This approach facilitates a conducive environment for arbitration, ensuring that agreements to arbitrate are accessible and enforceable across a wide array of disputes and parties, including those involving state entities.

In Jordan, the judiciary’s approach to arbitration agreements is fundamentally supportive, reflecting a broader pro-arbitration stance within the legal system. Courts in Jordan are inclined to honor the agreements made by parties to settle their disputes through arbitration. This is evident in the judiciary’s practice of directing parties to arbitration in accordance with their agreements, except in instances where the agreement is found to be invalid or unenforceable based on concrete and persuasive grounds. Such a practice ensures minimal interference from the judicial system in the arbitration process, affirming the principle that arbitration agreements are binding and must be respected.

The legal framework governing the enforceability of arbitral awards is meticulously outlined in Article 41 of the Jordanian Arbitration Law. This article delineates the essential legal and formal criteria that an arbitral award must meet to be recognized and enforced. Specifically, the award must be documented in writing and bear the signatures of the arbitrator or arbitrators. In situations where an award is rendered by a majority decision of an arbitral tribunal, the law requires that any absence of signature be justified in writing, ensuring transparency and accountability in the decision-making process.

Further, the award must be reasoned, providing a clear rationale for the decision reached by the arbitrators. It must also contain comprehensive details, including the names and addresses of the parties involved, as well as the identities, addresses, nationalities, and titles of the arbitrators. A concise summary of the arbitration agreement is required, alongside a brief overview of the dispute’s facts, encompassing the claims, statements, defenses, and documents presented by the parties.

Additionally, the text of the ruling must be included, specifying the arbitral decision. The award should also indicate the date and place of its issuance, reflecting the geographical and temporal context of the arbitration. Lastly, the determination of the arbitrators’ fees, the costs associated with the arbitration, and the distribution thereof must be explicitly stated, providing clarity on the financial aspects of the arbitration process.

Through these detailed requirements, Article 41 of the Arbitration Law ensures that arbitral awards are comprehensive, transparent, and grounded in the principles of fairness and due process. By adhering to these standards, arbitral awards gain the requisite legal formality and substance to be enforceable, thereby reinforcing the efficacy and reliability of arbitration as a dispute resolution mechanism in Jordan. This alignment of legal requirements with the principles of clarity and accountability underpins the enforceability of arbitral awards, facilitating their recognition and execution within the Jordanian legal system.

The principle of separability is recognized in Jordan’s arbitration framework. This principle ensures that the validity of the arbitration agreement is not affected by the possible invalidity of the main contract in which it is embedded. This is crucial in maintaining the effectiveness of arbitration clauses, even in cases where the main contract is disputed.

In the realm of arbitration, the fundamental principle is that only those who have expressly consented to arbitrate are bound by the terms of an arbitration agreement. This principle underscores the consensual nature of arbitration, ensuring that parties are not involuntarily subjected to arbitration processes without their agreement. Nevertheless, Jordanian legal practice acknowledges scenarios where non-signatories, such as successors or assignees of a contract that includes an arbitration clause, may find themselves bound by or capable of invoking the arbitration agreement.

Jordanian legal principles stipulate that a contract, inherently including any arbitration clauses it may contain, binds not only the original parties but also their legal successors. This extension to successors or assignees underscores the continuity of contractual obligations beyond the original signatories. Legal commentary further elaborates on situations where arbitration agreements could extend to third parties. A notable example provided involves the incorporation of an arbitration clause within the memorandum of association of a company. Such a clause, intended to govern disputes between the company and its shareholders, by virtue of the memorandum’s application, extends to all current and future shareholders, irrespective of their direct involvement in the memorandum’s signing. This example illustrates how arbitration agreements can transcend the immediate circle of signatories, encompassing a broader spectrum of individuals connected to the contractual relationship.

In summary, while the default position under Jordanian law emphasizes the consensual nature of arbitration agreements, there are recognized pathways through which third parties may become bound by or capable of leveraging such agreements. This nuanced approach reflects an understanding of the complexities inherent in contractual relationships and the evolving dynamics of commercial and legal interactions.

In Jordan, the ability for non-signatory third parties to participate in arbitration proceedings is subject to specific conditions, primarily the agreement of all original parties and, in many cases, the approval of the arbitral tribunal. The Jordanian Arbitration Law does not directly address the issue of adding third parties, known as joinder, to ongoing arbitration. This omission suggests that incorporating third parties into arbitration requires mutual consent from all initial parties involved in the arbitration agreement.

The decision to allow third-party participation also often depends on the rules of the arbitration institution overseeing the case, if such rules are applicable. Many arbitration institutions have set guidelines on how to handle the involvement of third parties, providing a structured method to manage this aspect of arbitration when the national legislation does not offer clear guidance.

Thus, in situations where the inclusion of a third party in arbitration is considered, the consent of all parties to the original arbitration agreement is essential, along with compliance with relevant institutional rules. This approach ensures the arbitration process remains orderly and consensual, reflecting the intentions and agreements of the original parties while accommodating the complexities of involving additional participants.

The Groups of Companies Doctrine, which allows for the extension of arbitration agreements to non-signatory entities within a group of companies under certain circumstances, is not expressly recognized in Jordan. However, courts and tribunals may consider the involvement and conduct of parties in relation to the contract to determine the applicability of the arbitration agreement.

In Jordan, the framework governing multiparty arbitration agreements is not explicitly detailed within the Arbitration Law. However, the law permits such agreements, emphasizing the importance of their careful drafting to maintain clarity regarding the appointment of arbitrators and the management of the arbitration process. The law leaves specific drafting requirements for multiparty arbitration agreements to the discretion of the involved parties, allowing them to determine the number of arbitrators and the method of their appointment. A critical stipulation is that the number of arbitrators must be odd to ensure the validity of the arbitration proceedings; any deviation from this requirement invalidates the proceedings.

Addressing the potential complexities arising in multiparty agreements, Article 16 of the Arbitration Law provides mechanisms for resolving disagreements among the parties regarding the appointment of arbitrators. When parties have reached an agreement on the number of arbitrators and the method of their appointment but have failed to agree on the selection of a chairperson, the appointed arbitrators are tasked with consensus-building to decide on the chairperson. Should the arbitrators be unable to agree on a chairperson, the responsibility then falls to a competent judge who will appoint the chairperson at the parties’ request.

If the parties have agreed on the number of arbitrators but left the method of their appointment undecided, it becomes the duty of a competent judge to appoint the arbitrators and select the chairperson from among them. Furthermore, in situations where parties have not established both the number of arbitrators and the method of their appointment, the law mandates the appointment of three arbitrators by a competent judge who also has the authority to choose the chairperson from among them.

This legal approach ensures that Jordan’s Arbitration Law can accommodate the complexities of multiparty arbitration agreements, providing a structured pathway to resolve disputes over arbitrator appointments. It reflects the law’s capacity to offer solutions in instances where the parties involved in a multiparty arbitration agreement have not reached full consensus, thereby facilitating the smooth progression of arbitration proceedings.

The consolidation of arbitration proceedings is not explicitly provided for in Jordanian law. Parties wishing to consolidate must agree to do so, and such agreements are subject to the consent of all involved parties and the arbitral tribunal’s ability to manage consolidated proceedings effectively.

In Jordan, the approach to the eligibility of arbitrators in arbitration proceedings is inclusive and flexible. The Jordanian Arbitration Law does not impose stringent nationality restrictions on arbitrators. This policy facilitates the inclusion of foreign arbitrators in disputes, a feature that is particularly advantageous in international arbitrations. Such arbitrations often benefit from the diverse legal perspectives and specialized expertise that arbitrators from different jurisdictions can provide.

The law prioritizes the principles of impartiality, independence, and the effective execution of duties as the fundamental criteria for the selection of arbitrators. These criteria ensure that arbitrators are capable of adjudicating disputes in a fair and unbiased manner, upholding the integrity of the arbitration process. Moreover, parties engaging in arbitration have the liberty to stipulate additional qualifications for arbitrators within their arbitration agreement, allowing for a tailored approach to the selection process that can address the specific needs and complexities of the dispute at hand.

While the Arbitration Law is liberal in terms of the nationality, gender, experience, or skills of arbitrators, it establishes essential conditions related to the legal and moral standing of an individual serving as an arbitrator. Specifically, an arbitrator must not be a minor, must not be legally incapacitated, and must possess full civil rights. The disqualifications for serving as an arbitrator include having a final conviction for a felony or misdemeanour that breaches moral integrity or being declared bankrupt, unless the individual has been legally rehabilitated.

An additional stipulation of the Arbitration Law is the requirement for the number of arbitrators to be odd, ensuring that decisions can be reached without deadlock. Failure to adhere to this requirement renders the arbitration proceedings void, emphasizing the importance of careful consideration in the formation of arbitral tribunals.

This comprehensive yet flexible framework for the eligibility of arbitrators under Jordanian law supports the effective and equitable resolution of disputes through arbitration. It reflects Jordan’s commitment to upholding high standards of arbitration practice while accommodating the diverse needs of international and domestic arbitration parties.

Parties are free to agree on the qualifications and professional background of arbitrators. This flexibility allows parties to appoint arbitrators with expertise relevant to the dispute, which can be particularly beneficial in complex commercial arbitrations.

In situations where parties involved in arbitration proceedings are unable to reach a consensus on the appointment of arbitrators or the method by which these arbitrators should be appointed, Jordanian law provides a mechanism for judicial intervention to resolve the impasse. This intervention is designed to ensure that arbitration proceedings can commence without undue delay, preserving the efficiency and efficacy of arbitration as a dispute resolution mechanism.

In instances where the arbitration is to be conducted under the auspices of an institutional arbitration body, the rules and procedures stipulated by the respective institution will dictate the default number of arbitrators and outline the process for their appointment. These institutional rules are crafted to ensure a streamlined and standardized approach to the formation of arbitral tribunals, thereby facilitating the smooth progression of arbitration proceedings.

Conversely, in ad hoc arbitrations, where the parties have not subscribed to the rules of an arbitration institution, and the Jordanian Arbitration Law is designated as the governing procedural law, the mechanism for the default appointment of arbitrators is clearly outlined. Unless the parties have expressly designated an alternative appointing entity in their agreement, the President of the Court of Appeal serves as the default authority responsible for the appointment of arbitrators. This judicial figure is empowered to act upon a request submitted by either of the disputing parties.

The process mandates that the judge consults with the other party to ensure that all perspectives are considered before making an appointment. Additionally, any specific conditions or qualifications for arbitrators that have been mutually agreed upon by the parties, or those that are mandated by law, must be taken into account by the judge. The overarching mandate for the judge in this context is to issue the decision regarding the appointment of arbitrators “as soon as possible.” This directive underscores the priority given to expediting the arbitration process, minimizing any potential delays that could impede the timely resolution of disputes.

This framework within the Jordanian Arbitration Law ensures that disputes can be moved to arbitration even in the absence of agreement between the parties on the selection of arbitrators, thereby upholding the arbitration agreement and facilitating dispute resolution in an efficient manner.

The Jordanian Arbitration Law establishes a comprehensive mechanism for addressing concerns regarding the impartiality, independence, or qualifications of arbitrators, which is vital for maintaining the integrity and fairness of the arbitration process. Under this framework, a party that questions an arbitrator’s ability to adjudicate without bias or doubts the arbitrator’s qualifications must articulate these concerns through a written statement detailing the basis of the challenge. This procedure is fundamental to ensuring that any potential threats to the fairness of the arbitration proceedings are promptly and effectively addressed.

For a challenge to proceed, it must be grounded in substantial circumstances that legitimately call into question the arbitrator’s impartiality or independence. The law mandates that arbitrators proactively disclose any situations that could potentially compromise their neutrality. Importantly, a party is restricted in its capacity to challenge an arbitrator it has appointed, with such challenges being permissible only under circumstances that were not apparent at the time of the arbitrator’s appointment. Furthermore, the legislation places limitations on the frequency and grounds for challenging an arbitrator, prohibiting parties from making repetitive challenges against the same arbitrator for identical reasons within the same arbitration proceedings.

In ad hoc arbitration scenarios, the procedural timeline for challenging an arbitrator is clearly defined. A challenge must be initiated within 15 days following the arbitrator’s appointment or from the moment the challenging party becomes aware of the justification for the challenge. Should the arbitrator opt not to voluntarily withdraw, they are required to respond to the challenge, substantiating their position with evidence within 15 days from the challenge’s submission. If the challenging party requests, the matter is then escalated to the Court of Appeal by the tribunal. The Court of Appeal is tasked with reviewing the challenge and issuing a definitive ruling within 30 days of receiving the relevant documentation. The court’s decision on such matters is conclusive and carries the weight of finality.

While the Arbitration Law itself is the primary reference for addressing these challenges, it also encourages the consideration of international business practices and principles prevalent in international arbitration, including potentially the IBA Guidelines on Conflicts of Interest. This openness to international standards underscores the law’s aim to align with best practices in arbitration globally. Conversely, when issues of impartiality or independence are brought before the courts, the legal standards applied to judges are likely to inform the courts’ deliberations and decisions, ensuring consistency with broader legal principles governing judicial conduct.

The relationship between the parties and the arbitrators is governed by principles of independence, impartiality, and confidentiality. Arbitrators must disclose any circumstances likely to give rise to doubts about their impartiality or independence.

In Jordan, the arbitration process is fundamentally consensual, allowing parties significant latitude to tailor the arbitration to their specific needs and preferences. This flexibility extends to the procedural aspects of arbitration, where the parties have the option to incorporate or exclude certain legal provisions as they see fit. Although the Jordanian Arbitration Law does not prescribe exhaustive procedural rules, it is understood that the Law of Civil Procedure and the Law of Evidence apply to arbitration proceedings, providing a basic legal framework within which arbitration is conducted.

In practice, parties often choose to specify their procedural preferences in the Terms of Reference, a document that outlines the arbitration’s procedural framework. It is common for parties to agree that procedural matters will be governed by the general principles of Jordanian law, explicitly excluding the direct application of the Law of Civil Procedure and the Law of Evidence. This approach allows for a more tailored and potentially streamlined arbitration process, adapted to the particular needs of the parties and the specifics of the dispute.

Despite this flexibility, there are certain foundational principles of Jordanian law that remain inviolable and must be observed throughout the arbitration process. These principles include the independence and impartiality of the arbitral tribunal, a cornerstone of fair and unbiased adjudication. Additionally, the rights of the parties to be heard, to be treated equally, and to have their case adjudicated in accordance with the principles of due process are paramount. These basic tenets ensure that the arbitration proceedings are conducted in a manner that respects the rights and expectations of all parties involved, safeguarding the integrity and legitimacy of the arbitral process.

By balancing flexibility with the adherence to fundamental legal principles, the Jordanian arbitration framework provides a robust foundation for dispute resolution. This approach facilitates effective and equitable arbitration proceedings, ensuring that the duties of arbitrators and the rights of parties are upheld in accordance with the highest standards of justice and fairness.

In the context of arbitration in Jordan, the issue of arbitrators’ immunity from liability is not addressed through explicit statutory provisions within the Arbitration Law. Instead, the matter is governed by the overarching principles of general law that apply to professional conduct and liability. According to these principles, arbitrators, like other professionals, are expected to execute their duties with a certain standard of care and integrity. They are held accountable for actions that constitute gross negligence, fraud, willful misconduct, or a denial of justice. These criteria set a high threshold for liability, recognizing that arbitrators must be able to perform their functions without undue fear of litigation, yet ensuring accountability in cases of serious misconduct or breach of duty.

The general law’s approach to arbitrators’ liability emphasizes the balance between the need for arbitrators to have the freedom to make impartial decisions based on their best judgment and the protection of parties’ rights to a fair and equitable arbitration process. It acknowledges the unique role of arbitrators in the dispute resolution process and the trust placed in them by the parties.

Furthermore, any attempt to contractually exempt arbitrators from liability for actions that meet the criteria of gross negligence, fraud, willful misconduct, or denial of justice is deemed void. This provision ensures that parties cannot waive their rights to seek redress for conduct that fundamentally breaches the arbitrators’ duty to act fairly and impartially. It reflects a commitment to maintaining the integrity of the arbitration process by holding arbitrators to a standard of accountability, while also safeguarding the essential principle of judicial independence that underpins the role of arbitrators in dispute resolution.

This framework for the liability and potential immunity of arbitrators underscores the careful balance that the Jordanian legal system strikes between ensuring the accountability of arbitrators and protecting the fundamental principles of arbitration as an autonomous and impartial mechanism for dispute resolution.

When a party initiates court proceedings in a matter that is subject to an arbitration agreement, Jordanian courts are required to refer the parties to arbitration if one of the parties requests such a referral before submitting its first statement on the substance of the dispute. This principle is in line with the New York Convention and underscores the commitment of Jordanian legal system to uphold the parties’ agreement to arbitrate. The court will only proceed to hear the dispute if it finds that the arbitration agreement is null and void, inoperative, or incapable of being performed, thereby providing a judicial safeguard against the misuse of arbitration agreements.

The principle of kompetenz-kompetenz recognized in Jordanian arbitration law allows the arbitral tribunal to rule on its own jurisdiction. This includes any objections with respect to the existence or validity of the arbitration agreement. It empowers the tribunal to address and decide on preliminary questions about its authority to hear the dispute, ensuring that the arbitration can proceed efficiently without undue interference.

Jordanian arbitration law distinguishes between the admissibility of a claim and the jurisdiction of the arbitral tribunal. This distinction is crucial for understanding the scope of the tribunal’s authority and the nature of the disputes it can resolve. While jurisdiction relates to the tribunal’s power to hear a case based on the arbitration agreement, admissibility concerns whether a particular claim can be arbitrated based on its merits or legal standing. This differentiation helps in streamlining the arbitration process by clarifying the types of issues that can be brought before the tribunal.

The Jordanian Arbitration Law specifies that any choice of law by the parties will be interpreted as referring to the substantive law, explicitly excluding any conflict of laws rules. This provision underscores the importance of the parties’ choice of law in guiding the resolution of the dispute. A tribunal’s failure to adhere to the chosen substantive law is grounds for the annulment of the arbitral award, highlighting the critical nature of this choice in the arbitration process. The tribunal’s role extends to ensuring that the dispute is resolved in accordance with the substantive law chosen by the parties.

In arbitration proceedings in Jordan, the principle of party autonomy plays a pivotal role, especially concerning the determination of the place of arbitration, the language to be used throughout the proceedings, and the law applicable to the substance of the dispute. This autonomy allows the parties to customize aspects of the arbitration process to suit the specific requirements of their dispute, ensuring that the process aligns with their preferences and the nuances of the case at hand. In scenarios where the parties have not reached an agreement on these matters, the responsibility falls to the arbitral tribunal to make these determinations. The tribunal considers various factors in its decision-making process, including the specifics of the case, the convenience of the parties involved, and overarching considerations of fairness and efficiency in the arbitration process.

In instances where the parties have not designated a substantive law, the tribunal is tasked with applying the law that shares the closest connection to the dispute. This approach ensures that the tribunal exercises its discretion in a manner that respects the context and substantive issues of the dispute. Additionally, the tribunal is mandated to consider relevant customs and practices within the field of the dispute, as well as any established patterns of interaction between the parties, further informing its decision-making process.

Moreover, the Jordanian Arbitration Law accommodates situations where the parties seek an amicable settlement of their dispute. If the parties grant the tribunal the authority to settle the dispute amicably, the tribunal may decide the matter based on principles of justice and equity, without being strictly bound by the letter of the law. This provision offers an avenue for resolutions that prioritize fairness and equity, providing the tribunal with the flexibility to issue awards that reflect the underlying principles of justice, even in the absence of explicit legal mandates.

Under Jordanian Arbitration Law, the initiation of arbitration proceedings is closely linked to the constitution of the arbitral tribunal. This approach underscores the importance of establishing a complete tribunal as a prerequisite for the formal commencement of arbitration, providing a structured foundation for the proceedings. The law embeds a principle of flexibility, allowing parties to define their own procedures for initiating arbitration, including the possibility of commencing proceedings prior to the full formation of the tribunal if they so agree.

In scenarios where the arbitration agreement stipulates a tribunal consisting of three arbitrators, the law sets forth specific procedural timelines for the appointment of these arbitrators. Each party is required to appoint one arbitrator within a 15-day period following the receipt of the arbitration notice. Subsequently, the two arbitrators appointed by the parties are given another 15 days to agree upon a chairperson. This structured timeline facilitates a swift formation of the tribunal, ensuring that arbitration proceedings can proceed without undue delay.

Should the parties fail to adhere to these timelines, either party is entitled to seek judicial intervention, requesting a competent judge to appoint the necessary arbitrator(s). This provision acts as a safeguard to prevent stalling in the constitution of the tribunal, thereby maintaining the momentum of the arbitration process.

Article 26 further elaborates on the commencement of proceedings, affirming that, unless the parties decide otherwise, arbitration officially begins upon the completion of the tribunal’s composition. Additionally, it addresses the procedural aspects related to the claim’s substance, which must be filed within a legally specified timeframe following the issuance of certain preliminary orders. The law clarifies that for the purpose of interrupting the statute of limitations, it suffices for the party initiating arbitration to send a legal notice to the other party. This notice should inform the latter of the arbitrator appointed by the initiator and confirm the arbitrator’s acceptance of the appointment.

This framework within the Jordanian Arbitration Law ensures that arbitration proceedings are initiated on a clear legal basis, with specific provisions designed to streamline the formation of the arbitral tribunal and to safeguard the parties’ rights from the outset. By delineating these procedural steps and timelines, the law reinforces the efficiency and efficacy of the arbitration process in Jordan.

In the arbitration process governed by Jordanian law, the arbitral tribunal is granted the authority to determine the format of the proceedings, specifically whether to include oral hearings for the presentation of evidence and arguments or to proceed solely on the basis of documents. This decision-making power allows the tribunal to tailor the arbitration process to the needs of each specific case, aiming for a resolution that is both fair and efficient.

While the tribunal holds the discretion to decide on the necessity of oral hearings, parties engaged in the arbitration generally retain the right to request such hearings. Tribunals take these requests into consideration, balancing the need to provide a comprehensive forum for the parties to present their cases against the overarching goal of efficient dispute resolution. Oral hearings play a crucial role in the arbitration process, offering a dynamic platform for parties to verbally present their claims, examine witnesses, and articulate their arguments directly before the tribunal.

The Jordanian Arbitration Law stipulates that the tribunal is obliged to conduct hearings to afford parties the opportunity to thoroughly present their claims and evidence. However, this requirement is flexible, with the law allowing the tribunal, upon agreement of the parties, to bypass oral hearings in favor of relying exclusively on written submissions and documentary evidence. This reflects a recognition of the efficiency and convenience that a documents-only approach can offer in certain contexts.

In practice, the emphasis in arbitration proceedings tends to be on written submissions, with oral hearings primarily convened for the purpose of witness and expert examination rather than extensive deliberation on the substantive merits of the dispute. Furthermore, the law accommodates the logistical flexibility of conducting hearings at locations different from the arbitration’s designated seat, enhancing the accessibility and convenience of the arbitration process.

A distinctive aspect of the Jordanian Arbitration Law is its explicit provision for conducting hearings and procedural meetings using electronic means, making it one of the few national laws to formally recognize and accommodate the use of virtual platforms in arbitration. This forward-looking approach acknowledges the evolving landscape of dispute resolution, embracing technological advancements to facilitate the conduct of arbitration in a manner that is adaptable to the practical realities faced by parties today.

In the framework of Jordanian arbitration proceedings, parties have the latitude to introduce a wide array of evidence that they consider pertinent and significant to their case. This includes, but is not limited to, documentary evidence, witness testimony, expert reports, and other forms of evidence that might support their claims or defenses. The authority vested in the arbitral tribunal to assess the evidence is expansive, covering the admissibility, relevance, materiality, and the significance of the evidence presented during the proceedings. Moreover, the tribunal possesses the authority to direct parties to furnish additional evidence or to call upon witnesses, aiming to acquire a thorough comprehension of the dispute’s facts and the issues at hand.

The Jordanian Arbitration Law remains neutral regarding the types of evidence that may be admitted into arbitration proceedings, leaving this determination to the discretion of the tribunal, guided by the specificities of the dispute, the procedural rules in place, and any agreement between the parties. In the absence of an alternative arrangement agreed upon by the parties, the Law of Evidence is applicable, allowing for the admission of factual, expert, and documentary evidence, either in written or oral form.

Furthermore, the arbitral tribunal is empowered to request the support of competent courts for certain procedural actions that could enhance the arbitration process. This support could manifest in various forms, such as summoning witnesses or experts, compelling the production of documents, or addressing any other procedural matters deemed necessary by the tribunal.

Notably, the Arbitration Law does not explicitly dictate procedures for document production in the context of international arbitration, leaving such considerations to be governed by the procedural rules selected by the parties and the tribunal’s prerogative to order document production. In practice, the approach to document production in proceedings influenced by Jordanian civil procedure tends to be more restrained compared to practices common in jurisdictions with a common law tradition. Even in international arbitrations, where tribunals might adopt a more streamlined approach to document production, the influence of the rigorous standards of the Law of Evidence may still be palpable, reflecting a careful and measured approach to the handling of documentary evidence.

In Jordan, the involvement of courts in arbitration proceedings is delineated with precision, ensuring that judicial intervention supports and complements the arbitral process rather than intrudes upon it. This structured approach facilitates the smooth operation of arbitration and addresses potential challenges that may arise, enhancing the overall efficacy of dispute resolution through arbitration.

According to Article 8 of the Jordanian Arbitration Law, court intervention in matters governed by the law is limited to specific instances outlined within the law itself. This provision establishes a clear boundary for court involvement, reserving judicial action for scenarios where it is expressly permitted. Notably, the arbitral tribunal is granted the authority to seek the assistance of competent courts for various procedural matters, such as summoning witnesses or experts, ordering the production or examination of documents, or any other action deemed necessary by the tribunal. This mechanism ensures that the tribunal has access to judicial support for essential procedural tasks, thereby overcoming obstacles that might otherwise impede the arbitration process.

Further illustrating the courts’ supportive role, Article 41d.3 specifies that decisions made by the arbitral tribunal regarding arbitration fees can be contested in the competent court within a fifteen-day period following notification to the parties. The court’s decision on such matters is final and binding, providing a recourse for parties dissatisfied with decisions related to fees.

Articles 45e and 46d address situations where it becomes impracticable for the arbitral tribunal that issued an award to reconvene for the purposes of considering requests for interpretation or correction of the award. In these circumstances, the matter may be referred to the competent court, unless the parties have agreed on an alternative approach. This provision ensures that there remains a pathway for addressing interpretative or corrective requests even when the original tribunal cannot fulfill this role.

Collectively, these provisions from the Jordanian Arbitration Law highlight the supportive and facilitative role of Jordanian courts in the arbitration process. By setting clear parameters for court involvement and providing mechanisms for judicial assistance when needed, the law ensures that arbitration remains an effective and enforceable method of dispute resolution, bolstered by the judiciary’s capacity to assist in overcoming procedural hurdles.

Arbitration proceedings in Jordan are generally confidential, with the arbitration agreement or applicable arbitration rules often stipulating the extent of confidentiality. This confidentiality covers the existence of the arbitration, the proceedings, the evidence presented, and the arbitral award. Confidentiality is a key feature of arbitration, providing the parties with a private forum for the resolution of their disputes.

Before or during the arbitration proceedings, parties may seek interim measures from Jordanian courts to protect their interests. These measures can include injunctions, orders for the preservation of assets, or the maintenance of the status quo. The ability to obtain such measures from the courts is critical for ensuring that the arbitration process is not rendered futile by the actions of one party that could harm the other party or prejudice the enforcement of a potential arbitral award.

Some arbitration rules provide for the appointment of an emergency arbitrator who can grant interim measures before the constitution of the arbitral tribunal. While this mechanism is not explicitly provided for in Jordanian law, parties may agree to arbitration rules that include provisions for emergency arbitrators.

In Jordanian arbitration proceedings, the arbitral tribunal is endowed with the authority to issue interim measures deemed necessary for the matter in dispute. This includes, but is not limited to, measures aimed at preserving evidence, maintaining or restoring the status quo, and providing security for the costs associated with the arbitration. The objective of these interim measures is to safeguard the integrity of the arbitration process, ensuring that the proceedings are conducted smoothly and that the eventual arbitral award is both meaningful and enforceable.

Article 23 of the Jordanian Arbitration Law provides a framework within which parties can empower the tribunal to order various types of interim reliefs. This empowerment can occur either through a direct agreement between the parties or, absent such an agreement, by the tribunal’s own initiative or upon the request of a party. The scope of interim measures that a tribunal can grant is subject to the nature of the dispute at hand, offering the tribunal a broad discretion to respond to the specific needs and circumstances of each case.

The Jordanian courts have adopted a broad interpretation of Article 23, recognizing the tribunal’s capacity to grant interim reliefs unless explicitly restricted by an agreement between the parties. This judicial stance underscores a commitment to upholding the autonomy of the arbitral process and ensuring that tribunals have the necessary tools to manage disputes effectively.

In instances where a party does not comply with an ordered interim measure, the tribunal has the further authority, upon request from the aggrieved party, to permit that party to undertake necessary actions to enforce the interim relief. This includes the ability to approach the competent court to secure an enforcement order. This mechanism ensures that interim measures have practical efficacy, providing a means to enforce such orders and thereby maintain the arbitration’s integrity and effectiveness.

Through these provisions, the Jordanian Arbitration Law ensures that arbitral tribunals possess the necessary powers to order and enforce interim measures, reflecting a comprehensive approach to dispute resolution that recognizes the importance of safeguarding the arbitration process and the interests of the parties involved.

Arbitral tribunals in Jordan have certain powers to sanction parties for non-compliance with their orders or the arbitration rules. These powers can include drawing adverse inferences, excluding evidence, and awarding costs against a non-compliant party. These sanctioning powers are essential for maintaining the integrity and efficiency of the arbitration process, ensuring that parties adhere to the procedural rules and respect the tribunal’s authority.

In Jordan, the decision-making authority vested in arbitral tribunals is extensive, enabling them to adjudicate disputes based on the case’s merits and the applicable law, as selected by the parties or determined by the tribunal in the absence of such selection. This authority encompasses the issuance of various types of decisions, namely interim, partial, and final awards, each serving distinct purposes within the arbitration framework.

Interim awards are utilized to address preliminary matters essential for the continuation of the arbitration process, such as questions regarding the tribunal’s jurisdiction. Partial awards are aimed at resolving specific segments of the dispute, allowing for a phased approach to dispute resolution. Finally, final awards provide a comprehensive resolution to all matters brought before the tribunal, effectively concluding the arbitration.

The procedural dynamics of the arbitration process are outlined in Article 24, which affirms the parties’ freedom to agree on the arbitration procedures, including the submission of statements, evidence, and pleadings. The arbitral tribunal, in turn, is responsible for issuing a procedural decision that delineates the arbitration procedures, including a timeline for the arbitration, reflecting any agreement between the parties.

Language considerations, as stipulated in Article 28, ensure that arbitration is conducted in Arabic unless the parties agree otherwise or the tribunal decides on a different language. This flexibility extends to all aspects of the arbitration, including evidence submission and tribunal communications.

The role of experts in the arbitration process is addressed in Article 34, where the tribunal may appoint experts to assist on specific matters requiring specialized knowledge. The tribunal either accepts the parties’ choice of experts or appoints them independently, clearly defining the experts’ duties and the allocation of expenses.

Decision-making within the tribunal, as described in Article 38, is typically aimed at achieving unanimous or majority decisions, with the presiding arbitrator holding the authority to decide procedural questions if authorized. In cases where a majority decision cannot be reached, the chairman of the tribunal may issue the final award, contingent upon the parties’ agreement.

Article 39 recognizes the parties’ ability to settle the dispute during arbitration, allowing for the settlement terms to be recorded by the tribunal in a decision with the same enforceability as an arbitral award. This provision underscores the tribunal’s role in formalizing settlements agreed upon by the parties.

Lastly, Article 40 empowers the tribunal to issue interim, provisional, or partial decisions prior to the final award, facilitating a responsive approach to the evolving needs of the arbitration process. This includes the immediate issuance of a final award upon the admission of claims by one of the parties, ensuring timely and efficient resolution of disputes.

These provisions collectively highlight the arbitral tribunal’s comprehensive decision-making powers in Jordan, providing a structured yet flexible framework for arbitration that accommodates the specific needs of the dispute and the parties involved.

The arbitration law in Jordan allows for dissenting opinions, where one or more arbitrators disagree with the majority’s decision. These opinions are attached to the main award and provide insight into the tribunal’s deliberations. While not affecting the award’s enforceability, they can be relevant in setting aside or enforcement proceedings, offering a comprehensive view of the tribunal’s decision-making process.

Arbitral awards must meet specific form and content requirements under Jordanian law. They must be in writing, signed by the arbitrators (with any dissenting opinions noted), and provide the reasons upon which the decision is based unless the parties have agreed otherwise. The award must also include the date and place of arbitration. These requirements ensure transparency and facilitate the understanding and enforcement of the award.

Under Jordanian Arbitration Law, specifically outlined in Article 37, the arbitral tribunal is mandated to render the final award concluding the dispute within a timeframe agreed upon by the parties. In the absence of such an agreement, the law stipulates a default period of twelve months from the date the tribunal is fully constituted for the award to be issued. This period can be extended by the tribunal for an additional twelve months, ensuring flexibility in the arbitration process, with the possibility of further extensions if agreed upon by the parties involved.

The legislation is designed to ensure that arbitration proceedings conclude within a reasonable period, fostering efficiency and predictability in dispute resolution. However, should the tribunal fail to issue its award within the designated or extended timeframe, any party to the arbitration may petition the President of the Court of Appeal. This petition can either request the setting of a new deadline for the award or seek the termination of the arbitration proceedings, providing an opportunity for the other party to respond to such a request. In the event that the arbitration proceedings are terminated, either party retains the right to pursue their claim in the competent court initially vested with jurisdiction over the dispute.

Moreover, the law requires that a copy of the award be delivered to each party within 30 days of its issuance, ensuring transparency and access to the tribunal’s findings and conclusions. For matters concerning the interpretation or issuance of additional awards, parties have a 30-day window from receipt of the award to submit an application to the tribunal. The tribunal, in turn, has specified periods within which to respond to these requests, with provisions for extensions, underscoring the law’s accommodation for comprehensive consideration of all aspects of the dispute.

Additionally, the Arbitration Law empowers the tribunal to correct any errors in the award, either proactively or in response to a party’s request, within 30 days following the award’s issuance or the submission of a correction request. In scenarios where tribunal consensus on interpretations or corrections is unattainable, the matter may be escalated to the Court of Appeal, barring any contrary agreement between the parties.

For the setting aside of an award, applications must be lodged with the Court of Cassation within 30 days from the notification of the award to the party seeking its annulment. The opposing party is then afforded a similar timeframe to submit its response, ensuring procedural fairness and the right to be heard.

This comprehensive framework delineated in the Jordanian Arbitration Law establishes clear guidelines for the timely issuance of arbitral awards and provides mechanisms for addressing delays, corrections, and interpretations, reflecting a balanced approach to arbitration that values efficiency, fairness, and the resolution of disputes in accordance with agreed or statutory timelines.

In Jordanian arbitration proceedings, arbitral tribunals have the authority to issue various types of awards, catering to different stages and aspects of the dispute resolution process. This flexibility in the types of awards available ensures that arbitration can adapt to the specific needs of the case and the parties involved.

Consent awards represent a collaborative resolution, where the parties, through the course of arbitration, reach a mutual agreement on the outcome of the dispute. This type of award formalizes the agreement reached by the parties and is recognized by the tribunal as the resolution of the dispute, embodying the principle of party autonomy in arbitration.

Interim or partial awards address specific issues or aspects of the case without resolving the entire dispute. These awards can be particularly useful in complex arbitrations where certain preliminary matters need to be decided to move forward with the arbitration process. According to Article 40 of the Jordanian Arbitration Law, the arbitral tribunal is empowered to issue such interlocutory decisions, provisional decisions, or partial awards before rendering the final award. This provision allows for a segmented approach to dispute resolution, enabling the tribunal to efficiently manage disputes by resolving certain issues as they arise.

Final awards conclusively settle the dispute between the parties, covering all the issues that were submitted to arbitration. A final award represents the culmination of the arbitration process, providing a definitive resolution that is binding on the parties. The Jordanian Arbitration Law also contemplates situations where one party admits some of the claims made by the other party. In such cases, the party whose claims have been admitted may obtain a final award on those specific matters, further demonstrating the law’s accommodation for flexibility and efficiency in resolving disputes.

The diverse types of awards that an arbitral tribunal can issue under Jordanian law reflect the arbitration process’s adaptability and responsiveness to the needs of the disputing parties. By allowing for consent awards, interim or partial awards, and final awards, the law ensures that arbitration can provide timely and effective resolutions to various aspects of a dispute, reinforcing the effectiveness of arbitration as a dispute resolution mechanism.

In the context of Jordanian arbitration, the termination of arbitration proceedings is governed by specific conditions as outlined in Article 44 of the Arbitration Law. The proceedings come to a close primarily upon the delivery of the final award, which resolves the dispute in its entirety. This marks the culmination of the arbitration process, with the arbitral tribunal fulfilling its mandate by providing a definitive resolution to the matters at hand.

Additionally, arbitration proceedings may be terminated through an order of the tribunal under several circumstances beyond the issuance of the final award. If the claimant decides to withdraw the claim, this action can lead to the termination of proceedings, provided that the tribunal does not recognize a legitimate interest on the part of the respondent to continue. Similarly, a mutual agreement between the parties to terminate the arbitration proceedings results in their conclusion, reflecting the principle of party autonomy that underpins arbitration.

The tribunal also has the authority to terminate proceedings if it determines that continuing would be futile or impossible. This could occur in situations where the resolution of the dispute becomes unfeasible due to external factors or if the prerequisites for a meaningful conclusion are no longer present.

Another instance leading to the termination of proceedings is the failure to achieve the majority required for the issuance of an award, as per the agreement between the parties. This scenario underscores the importance of clear agreements regarding decision-making within the arbitral tribunal to ensure the smooth progression towards an award.

Following the termination of proceedings, the mandate of the arbitral tribunal concludes, subject to the provisions of Articles 45, 46, and 47 of the Arbitration Law. These provisions further detail the consequences of termination, including matters related to the tribunal’s mandate, the potential annulment of awards, and the enforcement of the decision. This comprehensive framework ensures that the termination of arbitration proceedings is handled with clarity and finality, allowing the parties to move forward from the dispute in a structured and legally sound manner.

In Jordanian arbitration proceedings, the allocation and recovery of costs are governed by principles that afford the arbitral tribunal significant discretion. These costs encompass arbitrators’ fees, administrative expenses, and legal or other expenses incurred by the parties. The tribunal’s decision on cost allocation takes into account various factors, including the outcome of the arbitration and the conduct of the parties throughout the process.

In scenarios of ad hoc arbitration, the agreement between the parties and the tribunal can predetermine the arbitrators’ fees and the distribution thereof among the parties. In the absence of such an agreement, the tribunal is empowered to determine the fees as part of its award, with the default approach being an equal split between the parties. This determination, as part of the arbitral award, can be subject to challenge by the parties at the Court of Appeal, whose decision on the matter is final and binding.

When it comes to expenses and legal fees, the tribunal has the authority to decide on their allocation. Although the “loser pays” principle, prevalent in Jordanian civil litigation, often influences this decision, the Arbitration Law provides the tribunal with the flexibility to depart from this norm. This flexibility allows the tribunal to make alternative decisions, such as requiring each party to bear its own legal fees or allocating costs on a pro rata basis, depending on what it deems appropriate given the circumstances of the case. Such arrangements can also be made through an agreement between the parties.

Article 41 of the Arbitration Law explicitly addresses these aspects, stating that the arbitral award must determine the arbitrators’ fees, the costs of arbitration, and the method of distributing such costs between the parties. In situations where the parties and arbitrators have not reached an agreement on fees and their distribution, the tribunal will decide on the fees, requesting equal payment from both parties, subject to the tribunal’s final decision on the allocation of expenses and fees in the arbitral award. If one party fails to pay its share of the expenses and fees, the tribunal may request the other party to cover the shortfall.

Furthermore, any decision made by the arbitral tribunal regarding arbitration fees is subject to challenge before the Competent Court within fifteen days from notification to the parties, and the court’s ruling on this matter is conclusive. This procedural safeguard ensures that the allocation and recovery of costs in arbitration proceedings are subject to judicial oversight, providing a mechanism for addressing disputes over cost allocation and ensuring fairness in the financial aspects of arbitration.

In alignment with common practice, arbitral awards under the Jordanian Arbitration Law frequently include provisions for the payment of interest, drawing upon the precedents established in the Law of Civil Procedure. The specification of the interest rate is contingent upon whether the parties had previously agreed upon a rate within their contract. Should such an agreement exist, the tribunal or court will adhere to the rate stipulated by the parties.

In Jordanian arbitration proceedings, there exists a provision for parties to seek the interpretation or correction of an arbitral award to clarify the rights and obligations stipulated within it or to rectify any typographical, computational, or similar errors present in the award. This mechanism is crucial for ensuring that the award accurately reflects the tribunal’s decisions and intentions, thus safeguarding the integrity of the arbitration process.

The arbitration tribunal is responsible for correcting any material errors, whether they are typographical or computational, that may have occurred in the award. This correction can be initiated by the tribunal itself or upon a request made by one of the parties involved in the dispute. The tribunal undertakes this correction without the need for further hearings and must do so within thirty days following the issuance of the award or the submission of a correction request, depending on the specific circumstances of the case.

The decision regarding the correction of the award must be documented in writing by the tribunal and communicated to both parties within thirty days from its issuance. Should the tribunal exceed its authority in making such corrections, the affected party has the right to challenge the validity of the correction decision by filing a claim for annulment, subject to the provisions of the arbitration law.

Furthermore, any correction decision made by the tribunal is appended to any claim for the annulment of the arbitration award, should such a claim be filed or considered before the issuance of the correction decision. In situations where it proves impossible for the original arbitral tribunal to convene for the purpose of considering a correction request, the matter may be escalated to the competent court for resolution, unless the parties have agreed to an alternative arrangement.

This framework for the interpretation and correction of arbitral awards in Jordanian arbitration law ensures that errors can be efficiently addressed, maintaining the accuracy and reliability of the award. It provides a clear process for parties to seek clarifications or corrections, enhancing the finality and enforceability of arbitral awards by ensuring they are free from material errors and accurately represent the tribunal’s determinations.

In Jordan, the possibility of challenging and seeking the annulment of arbitral awards is circumscribed by the Jordanian Arbitration Law, which delineates specific grounds upon which such challenges can be based. This framework ensures that the challenge process is not misused to revisit the substantive aspects of the dispute but is reserved for addressing procedural irregularities and legal discrepancies that might undermine the integrity of the arbitral award.

Article 49 of the Jordanian Arbitration Law specifies the conditions under which an arbitral award may be challenged. These include the absence of a valid and written arbitration agreement, the incapacity of one of the parties at the time the arbitration agreement was made, and the inability of a party to present its case due to inadequate notice or other circumstances beyond its control. Other grounds include the arbitration agreement’s exclusion of the law agreed upon by the parties for the dispute, the formation of the arbitral tribunal or appointment of arbitrators in violation of the law or the parties’ agreement, the award addressing issues not covered by the arbitration agreement or exceeding its bounds, and the award’s non-compliance with the mandatory requirements affecting its substance or based on invalid arbitration procedures.

Furthermore, Article 49 allows the Court of Cassation to annul an arbitration award if it finds that the award contradicts public order in the Kingdom or deals with matters that are non-arbitrable under Jordanian law.

Challenges to the arbitral award must be brought before the Court of Cassation within thirty days following the notification of the award, as stipulated in Article 50. The opposing party has a similar timeframe to submit its response to the challenge. The Court of Cassation conducts a thorough examination of the annulment application, addressing all raised grounds for annulment unless it decides otherwise.

In the event that the Court of Cassation upholds the arbitral award, it orders its enforcement. Conversely, if the court decides to annul the award, it declares the award null and void, although such annulment does not necessarily invalidate the arbitration agreement unless the agreement itself is inherently void.

This structured approach to the challenge and annulment of arbitral awards within the Jordanian legal framework provides a clear and fair process for addressing concerns related to the validity and legality of arbitral decisions. It ensures that while arbitration remains a preferred and effective mechanism for dispute resolution, there are adequate safeguards in place to protect the parties’ rights and uphold the principles of justice and public order.

Arbitral awards are final and binding, with no avenue for appeal on the merits. However, the parties may agree on an appellate arbitration mechanism to review the award within the arbitration framework. Absent such agreement, the only recourse against an arbitral award is its challenge or setting aside on the limited grounds provided by law.

In Jordan, both domestic and foreign arbitral awards are recognized and subject to enforcement, guided by the provisions of the New York Convention (NYC) and local laws. To initiate the enforcement process, the party seeking to enforce an award must submit an application to the competent court. This application must be accompanied by either the original arbitral award or a certified copy of it, along with a certified translation in instances where the award was issued in a language other than Arabic.

The enforcement of foreign arbitral awards in Jordan is principally regulated by the Law on the Enforcement of Foreign Judgments (LEFJ). As per Article 2 of this law, the definition of a “Foreign Judgment” encompasses any arbitral award that, according to the laws of the country where the arbitration took place, is enforceable in the same manner as a judgment issued by the courts of that country.

Jordan’s adherence to the New York Convention further shapes the enforcement landscape. One notable provision under the NYC is that awards which have been set aside or annulled in the country of origin are not subject to enforcement. Therefore, Jordanian courts will not enforce a foreign arbitral award if it has been annulled by the competent authorities in the country where the arbitration was conducted.

While Jordanian courts are generally acquainted with the procedures for enforcing arbitral awards, it is important to note that, despite being a signatory to the NYC, the courts require an exequatur—a judicial recognition of a foreign arbitral award—before proceeding with enforcement actions.

In the context of commercial transactions involving the state or state entities, such entities are treated as normal juridical persons. However, the laws provides protection for state assets against enforcement actions. In cases where enforcement against state assets is sought, the process involves submitting an application to the Prime Minister, who will then make a determination regarding the enforcement action.

This framework ensures that arbitral awards, whether originating domestically or internationally, are accorded recognition and can be effectively enforced in Jordan, albeit with certain procedural requirements and protections, particularly concerning state assets. This approach underscores Jordan’s commitment to upholding the enforceability of arbitral decisions, aligning with international standards while considering the nuances of domestic law and state interests.

In Jordan, while the Arbitration Law itself does not set forth specific time limits for the enforcement of arbitral awards, such time limits are established under the country’s procedural laws. For parties seeking to enforce an arbitral award, it is crucial to initiate enforcement proceedings within the legally prescribed timeframe after the award has become binding on the parties involved.

Concerning the recognition and enforcement of foreign arbitral awards, there indeed exists a limitation period within which legal proceedings must be commenced. The applicable limitation period for initiating such proceedings is 15 years, commencing from the date on which the arbitral award was issued. This extended period reflects a commitment to allowing sufficient time for the enforcement of foreign awards, recognizing the complexities that may be involved in international dispute resolutions and the subsequent enforcement process.

This framework ensures that parties have a clear understanding of the timeline within which they must act to seek the enforcement of both domestic and foreign arbitral awards in Jordan, thereby providing a measure of predictability and security in the post-arbitration phase. The 15-year limitation period for foreign awards underscores Jordan’s alignment with the principles of international arbitration, facilitating the effective enforcement of arbitral decisions while respecting the procedural safeguards provided by Jordanian law.

In Jordan, the enforcement of foreign arbitral awards is facilitated under the framework of the New York Convention, with the stipulation that such awards must be final, binding, and not in violation of Jordanian public policy. This ensures that foreign arbitral awards are recognized and enforced in a manner that respects both the integrity of the arbitration process and the legal standards of Jordan.

The Courts of First Instance hold jurisdiction over the recognition and enforcement of foreign awards. Notably, Jordanian legal practice does not specify explicit requirements for these courts to accept jurisdiction over such matters. This absence of clear prerequisites suggests a broad scope for the enforcement of foreign judgments, potentially irrespective of the domicile of the respondent or the presence of their assets within Jordan.

The process for obtaining the first decision on the recognition and enforcement of foreign awards is conducted through inter partes proceedings, involving both parties in the dispute. This initial decision is subject to appeal, with two levels of recourse available to the parties. They have the right to appeal to the Court of Appeal and, subsequently, with permission, to the Court of Cassation.

Execution against assets based on a foreign arbitral award can generally commence following the lapse of the appeal period against the first decision granting enforcement. This appeal period expires 30 days after the award debtor has been officially notified of the enforcement decision.

For a foreign award to be recognized and enforced, specific documentation is required, including:

  • A certified copy of the arbitral award.
  • A certificate confirming the award’s enforceability in the jurisdiction of its origin.
  • A certified translation of the award if not in Arabic.
  • The original arbitration agreement or a certified copy.

 

These documents must be submitted in their entirety, with both the original or a certified copy of the award and the arbitration agreement required. Two copies of these documents must be provided to the court, which retains the originals filed.

All documents submitted for the recognition and enforcement of a foreign award must be translated into Arabic. The translations must be certified by a translator recognized by the notary public in Jordan, ensuring the accuracy and reliability of the translation for legal proceedings.

The Jordanian courts do not have the provision to stay legal proceedings for the recognition and enforcement of foreign awards pending the outcome of an application to set aside or suspend the award in the country of origin. The courts will proceed with the enforcement unless there is convincing evidence that the award has not become final and conclusive. Furthermore, a stay of proceedings for reasons other than mutual agreement between the parties for a valid cause is unlikely, with the courts opting to either dismiss or accept the enforcement claim based on the merits of the case and adherence to procedural requirements.

The enforcement of orders by emergency arbitrators is not explicitly addressed in Jordanian law. However, parties may agree to arbitration rules that provide for the recognition and enforcement of such orders.

Third-party funding, where a third party finances the cost of arbitration in exchange for a share of the award, is not expressly regulated in Jordan. However, this practice is increasingly recognized in international arbitration, and parties may resort to third-party funding arrangements.

Contact

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Reach out to JIAC for inquiries, support, or collaboration opportunities. Connect with our dedicated team to learn more about our arbitration services, partnership possibilities, or to share your insights and feedback.

JIAC Secretary-General

Abdulla Abuwasel

awasel@jiac.world

We welcome your questions and look forward to engaging with you to advance the practice of arbitration in Jordan and beyond.

Abdulla