In commercial activities, the occurrence of conflicts and disputes is inevitable. One of the methods to resolve disputes is through litigation. Therefore, it is crucial to determine the Court’s jurisdiction to resolve disputes. Here are some important grounds for determining the Court’s jurisdiction to resolve commercial business disputes.
1. Determination of the Court’s Dispute Resolution Jurisdiction
• Jurisdiction is associated with the rights and duties prescribed by law for state agencies, leaders and managerial positions in those agencies to perform their functions and tasks. The jurisdiction of the Court is the power to consider the settlement of cases and the power to make decisions when considering the settlement of such cases according to the proceedings of the Court.
• Pursuant to Clause 1, Article 30 of the Civil Procedure Code 2015, business and commercial disputes fall under the jurisdiction of the Court.
• If the parties agree to settle the dispute at the Court if the contract, as well as the parties do not agree on the dispute settlement body, the dispute shall be settled at the competent Court. At that time, the jurisdiction of the Court to settle disputes is determined as follows:
– Determination of the Court’s jurisdiction according to the case: The jurisdiction of the Court is determined based on the specific case. Business and commercial disputes that fall under the jurisdiction of the Court are listed in Article 30 of the Civil Procedure Code 2015.
– Determination of the Court’s jurisdiction by trial level: The jurisdiction of the Court is also determined by trial level. Depending on the type of dispute and the place of registration of residence or headquarters of the parties concerned, the district or provincial People’s Court has jurisdiction to settle commercial disputes.
– Determination of the jurisdiction of the Court according to territory: The jurisdiction of the Court may be determined based on where the defendant resides, works, or the defendant’s headquarters. In the event that the respondent entity has more than one place of operation, then the court where the respondent resides, works or the final headquarters address shall have jurisdiction.
– Determination of the Court’s jurisdiction at the choice of the Plaintiff: The Plaintiff has the right to choose the Court to resolve a dispute based on certain specific conditions.
2. Determination of the jurisdiction of the Court in the event of an Arbitration agreement
When requesting the Court to settle a dispute over commercial business, the Court will determine whether the parties have an arbitration agreement or not. The court must examine and review the documents attached to the petition to determine that the dispute does not fall under the category of an arbitration agreement.
Normally, when the parties have an Arbitration agreement, the Arbitrator will be the settlement body in case a dispute arises. However, a dispute with an arbitration agreement but falling into one of the following cases shall fall under the jurisdiction of the Court, unless otherwise agreed by the parties or otherwise provided for by law:
• There is a decision of the Court to annul the arbitral award, annul the decision of the arbitral tribunal on recognizing the agreement of the parties.
• There is a decision on suspension of dispute settlement by the arbitral tribunal or arbitration center specified in Clause 1, Article 43, Points a, b, d and đ, Clause 1, Article 59 of the Law on Commercial Arbitration.
• The parties concerned have an agreement to resolve their disputes at a specific arbitration center which has now shut down without any arbitration center that inherits its cases, and the parties fail to reach an agreement on another arbitration center to resolve their disputes.
• Both parties have an agreement on the appointment of a specific arbitrator to resolve disputes, but when the dispute arises, due to force majeure events or objective difficulties, such arbitrator cannot resolve the case, or the arbitration center or court cannot find a substitute arbitrator as agreed by the parties concerned, and the parties concerned also fail to reach an agreement to select a substitute arbitrator.
• Both parties have an agreement on the appointment of a specific arbitrator to resolve disputes, but when the dispute arises, such arbitrator refuses the appointment or the arbitration center refuses the appointment of the arbitrator, and the parties also fail to reach an agreement to select a substitute arbitrator
• The parties have an agreement to resolve their disputes at a specific arbitration center but choose the arbitration rules of another arbitration center, which is different from the agreed arbitration center, and the charter of the arbitration selected by both parties does not allow the application of arbitration rules of other arbitration centers, and the parties fail to reach an agreement on substitute set of arbitration rules.
• The goods seller/service provider and consumers have a general term on the provision of goods/services that contain arbitration terms drafted by the seller as prescribed in Article 17 of Law on Commercial Arbitration, but the consumers refuse to have the dispute that arises resolved by an arbitral tribunal.
However, determining whether the arbitration agreement is null and void or the arbitration agreement is unenforceable is the jurisdiction of the arbitrator. In particular, before deciding the case on merit, the arbitral tribunal must consider the validity of the arbitration agreement; whether the arbitration agreement is enforceable and consider its jurisdiction. If the case falls within its jurisdiction to settle, the arbitral tribunal shall settle the dispute in accordance with the provisions of the law. In case it does not fall within its jurisdiction, the arbitration agreement is invalid, or the arbitration agreement cannot be enforced, the arbitral tribunal shall decide to suspend the settlement and notify the parties.
Above are the contents and legal sharing of TNTP on the legal basis for determining the Court’s jurisdiction to resolve business and commercial disputes. We hope this article will be useful for our readers.
Sincerely.
