What Are the Conditions for Admitting a Compensation Claim Under Saudi Law?
Compensation lawsuits are among the most common types of cases filed daily before Saudi courts. This is because Article (120) of the Saudi Civil Transactions Law states:
“Any fault that causes harm to others obliges the person who committed it to compensate for such harm.”
Despite this, many compensation claims are dismissed due to various procedural and substantive reasons. In this article, Al Salamah Law Firm explains the essential conditions required for a compensation lawsuit to be admitted before the court.
Statement of Claim for Compensation
A compensation lawsuit is initiated by submitting a formal statement of claim filed by the plaintiff’s legal representative before the competent court to begin litigation and seek compensation for the harm suffered.
Conditions for Claiming Compensation Under Saudi Law
To claim compensation under Saudi law, the following elements must be established:
- Fault
- Damage
- Causal link between fault and damage
Required Elements of a Compensation Statement of Claim
Article (41) of the Law of Shari’ah Pleadings sets out the formal elements that any statement of claim must include. It must be signed by the plaintiff or their representative, submitted in original along with copies for each defendant, and must contain the following information:
- Full name of the plaintiff, ID number, occupation or job title, place of residence, workplace, and the same details for their representative.
- Full name of the defendant, available details about their occupation, place of residence, and workplace. If the defendant has no known residence, then their last known address must be stated.
- Date of filing the claim.
- The court before which the case is filed.
- A chosen address for the plaintiff in the city where the court is located (if the plaintiff does not already reside there).
- Subject matter of the claim, the relief sought, and supporting evidence.
For claims filed against government entities, it is sufficient to state only the name and location of the entity. The claim must not combine multiple unrelated requests in a single filing.
Conditions for Admitting a Compensation Statement of Claim
For the court to accept the compensation claim, the following must be met:
1. Identifying the Competent Court
The claim must be filed before the court that has jurisdiction over the dispute. This is determined based on rules of territorial, subject-matter, and value-based jurisdiction prescribed in the Law of Shari’ah Pleadings.
Choosing the wrong court wastes time, effort, and money and leads to dismissal of the case.
For proper guidance, contact Al Salamah Law Firm.
2. Identifying the Parties
The lawsuit must be filed against the correct party with legal standing. Failure to do so results in dismissal.
The claim must clearly identify the parties involved, with complete and accurate information.
3. Identifying the Legal Right Claimed
The statement of claim must clearly outline:
- The fault committed
- The harm suffered by the plaintiff
- The causal link between them
- The specific right or compensation sought
The legal “cause of action” refers to the factual or legal event from which the plaintiff derives the right they are seeking. The classification of the claim depends on the true nature of the relief sought and the legal basis underpinning it.
Conditions for Filing a Claim for Material Damage
To file a compensation claim for material harm, the plaintiff must:
- Prove the damage suffered
- Prove the defendant’s fault
- Establish the causal link
- Request compensation equivalent to the loss suffered
Common Cases of Compensation Claims in Saudi Arabia
Compensation claims arise in various situations, including:
- Bodily injury, vehicle damage, and other losses resulting from traffic accidents
- Workplace injuries or occupational diseases
- Harm caused by defective or dangerous products, including cosmetics or medical products
- Losses resulting from a party’s failure to comply with contractual obligations
- Harm caused by providing misleading information or concealing essential facts when concluding a contract
- Compensation for products or services that fail to meet agreed specifications or warranties
- Copyright infringement, including unlawful use or reproduction of protected works
- Patent infringement, including unauthorized use or manufacturing of a patented invention
Compensation Claim Template
To request a tailored compensation claim template, please contact Al Salamah Law Firm.
Frequently Asked Questions
What are the conditions for compensation under Saudi law?
Fault, damage, and a causal link between them.
Can moral (non-material) damage be compensated?
Yes. Article (138) of the Civil Transactions Law allows compensation for moral harm.
When is compensation considered proportionate to the damage?
Compensation is proportionate when it covers both:
Actual losses incurred
Lost profits
as stated in Article (137) of the Saudi Civil Transactions Law.
The final amount is subject to the court’s discretion.
When is a person not liable for the damage?
Article (125) of the Civil Transactions Law states that a person is not liable if the damage resulted from a cause beyond their control, such as force majeure, the fault of a third party, or the fault of the victim—unless otherwise agreed.
What is the limitation period for compensation claims?
10 years from the date the damage occurred.
Claims arising from a wrongful act are not heard after 3 years from the date the victim becomes aware of the harm and the liable party.
If the claim arises from a criminal offense, it remains admissible as long as the related criminal case is admissible.
When does the right to claim compensation expire?
After 10 years from the date of knowledge of the damage.
A Well-Drafted Statement of Claim Is the Key to Acceptance
Leave the task of drafting your claim to our specialized legal team to ensure a strong, compliant, and admissible filing.
Do not hesitate to contact Al Salamah Law Firm for legal support and consultation.
