Al-Tamyeez rejects new fee mechanism

The Court of Cassation ruled that it is not permissible to modify or reevaluate the arbitrator's fees in an arbitration dispute. It emphasized that the judiciary's role is limited to interpreting the parties' agreement regarding the fees, not establishing a new mechanism for determining them. In the same case, an agreement was made on fees amounting to 52,000 dinars. However, the Court of Appeal reduced these fees to 12,000 dinars, a decision the court found unlawful, as it exceeded the court's jurisdiction, constituted an interference with the parties' will, and risked creating new conditions that had not been mutually agreed upon. The court clarified that an arbitrator’s lack of authority to decide on the dispute does not imply that their performed work is considered unpaid. Furthermore, the judiciary does not have the power to reevaluate fees unless the agreement explicitly provides for such reevaluation. In this case, reevaluation was not permitted. The Court affirmed that the contested judgment violated this principle by modifying the arbitrator’s fees despite the absence of any clause permitting such an adjustment. It stated that interpreting an agreement should be confined solely to its explicit terms and should not lead to modifying its conditions or imposing new fees under the guise of interpretation.

Size: 120%Text Size

Notice: This Is an AI-Generated Summary

Display The Full Article