The Multi-Tiered Dispute Resolution Clause and its Applications in Jordan

Authors

DOI:

https://doi.org/10.35516/law.v51i1.3168

Keywords:

Arbitration, contracting, dispute resolution, FIDIC, multi-tiered

Abstract

Objectives: The aim of this study is to clarify the concept of multi-tiered Dispute Resolution Clause and explain its application and enforceability. This type of clause is particularly useful in resolving engineering disputes, and thus it is incorporated in a wide number of construction contracts including the FIDIC Red Book contract which is used in the projects of the Jordanian Ministry of Public Works and Housing.

Methods: The study uses comparative analysis to examine the relevant legal texts used in the study in the light of Arab and international jurisprudence as well as judicial decisions.

Results: The study reveals that what is stipulated in the multi-tiered Dispute Resolution Clause will be enforced on the parties according to the principle of party autonomy. Following the step-by-step procedure that the clause contains leads to the settlement of disputes outside of court. The study also shows that Jordanian legislators must add an item to Article (109) of the Code of Civil Procedure, responding to the will of the parties to settle disputes through an out-of-court proceeding rather than through litigation, even without an arbitration clause.

Conclusions: The multi-tiered Dispute settlement clause is binding and the parties must follow its mandatory steps in the same order contained therein, even if it does not contain an arbitration clause. For this reason, applying the clause must be raised by the parties before negotiating the case.

Downloads

Download data is not yet available.

References

Berger, K., (2006). Law and Practice of Escalation Clauses. Arbitration International, 22(1), 1–18.

BIENVENU, P. (2003). The enforcement of multi-tiered dispute resolution clauses in international contracts. The Canadian Bar Review, 82(2), 489-533.

FERREIRA, Ana Betina da Costa Pires. (2021), Multi-tiered clauses: Repercussions of mediation on arbitration [Cláusulas escalonadas: repercussões da mediação na arbitragem], Revista Brasileira de Alternative Dispute Resolution, 3(6), 21-36. https://doi.org/10.52028/rbadr.v5i9.RES-DBM

Garimella, S., & Siddiqui, N., (2016). The Enforcement of Multi-Tiered Dispute Resolution Clauses: Contemporary Judicial Opinion. International Islamic University Malaysia Law Journal, 24(1), 157 - 191.

Garnett, R. (2013). Coexisting and conflicting jurisdiction and arbitration clauses. Journal of Private International Law, 9(3), 361-386.

Garnuszek, A., & Orzeł, A., (2016). Enforceability of Multi-tiered Dispute Resolution Clauses under Polish Law. Arbitration Bulletin, (24), 166-180.

Greenwood, L. (2011). A window of opportunity? building a short period of time into arbitral rules in order for parties to explore settlement. Arbitration International, 27(2), 199-210.

Haugen, T., & Singh, A., (2014). Dispute Resolution Strategy Selection. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 7(3), 05014004-1 – 05014004-11.

Sellers, M., Maxeiner, J., de Araújo, N., Bakšic-Muftic, J., Miller, D. L. C., Félix, L. P. M., ... & de Zwaan, J. (2008). Ius Gentium: Comparative Perspectives on Law and Justice. (No Title).

Jagannathan, M., & Delhi, V., (2019). Litigation Proneness of Dispute Resolution Clauses in Construction Contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 11(3), 04519011-1 – 04519011-8.

Kajkowska, E. (2017). Enforceability of Multi-Tiered Dispute Resolution Clauses. (1st ed.). London: Hart Publishing.

Kayali, D. (2010). Enforceability of Multi-Tiered Dispute Resolution Clauses. Journal of International Arbitration, 27(6), 551-577.

Mak, C., (2018). Drafting Dispute Resolution Clauses- Four Main Guiding Principles That Drafters Should Observe. Young Arbitration Review, 31(1), 50-56.

Nigmatullina, D. (2019). Combining Mediation and Arbitration in International Commercial Dispute Resolution. (1st ed.). New York: Routledge.

Nigmatullina, D. (2016). The Combined Use of Mediation and Arbitration in Commercial Dispute Resolution: Results from an International Study. Journal of International Arbitration, 33(1), 37-82.

Otoluwa, P., & Matompo, O. S. (2022). Settlement of Business Contract Disputes through Arbitration Efforts in Civil Law Review, Indonesian Research Journal in Legal Studies, 1(1), 59-72.

Pryles, M. (2001). Multi-tiered dispute resolution clauses. Journal of International Arbitration, 18(2), 159-176.

Qtiashat, K.S., & Qtaishat, A.K. (2021). Third Party Funding in Arbitration: Questions and Justifications. International Journal for the Semiotics of Law, 34(2), 341–356. https://doi.org/10.1007/s11196-019-09635-2.

Rajah, V. K. (2017). W(h) ither adversarial commercial dispute resolution?. Arbitration International, 33(1), 17-34.

Tevendale, G., Ambrose, H., & Naish, V. (2015). Multi-Tier Dispute Resolution Clauses and Arbitration. The Turkish Commercial Law Review, 1(1), 31-40.

Zheng, P., Qin, C., & Li, H. (2020). Navigating Conflict of Laws in International Commercial Arbitration in China. Dispute Resolution in China, Europe and World, 209-228.

Oseni U.A., Adewale A., & Mohd Zain N.R.B. (2016), Customers' perceptions on the dispute resolution clauses in Islamic finance contracts in Malaysia. Review of Financial Economics, 31, 89-98, https://doi.org/10.1016/j.rfe.2016.05.004.

Published

2024-03-15

How to Cite

Alqhaiwi , J. ., Rayyan, I. ., & Alhasan, T. . (2024). The Multi-Tiered Dispute Resolution Clause and its Applications in Jordan. Dirasat: Shari’a and Law Sciences, 51(1), 41–51. https://doi.org/10.35516/law.v51i1.3168

Issue

Section

Law
Received 2022-12-03
Accepted 2023-07-04
Published 2024-03-15