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Saudi Arabia: Penalties for Malicious Law Suits Introduced

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00


malicious law suits, saudi arabia

Initiating a case for intimidating another party, without sufficient legal cause, could land you in serious trouble in Saudi from now on, thanks to the new penalties which would entail malicious law suits. The new Judicial Costs Law, which was passed by the Council of Ministers, is expected decrease malicious lawsuits, stimulate litigant reconciliation, and promote transaction and contract documentation. Free litigation will continue to be a right guaranteed to all parties interested in instances not covered by the new law. The purpose of charging fees is to close the gap between court costs and the ideal of unrestricted litigation. The statute also intends to improve court performance and reduce the amount of malicious litigation. There are clauses in the law that state that the loser of a case is responsible for the litigation costs. However, there shall be exceptions for certain kinds of suits. The judicial costs collected shall be added to the special account of the Ministry of Finance.