Key Legal Principles from Jordan's Court of Cassation in 2023

Jordan's Court of Cassation serves as the highest court in the Jordanian judicial system, playing a decisive role in achieving justice, interpreting laws, and ensuring their consistent application. This annual review summarizes the most significant legal principles established in 2023 — a valuable reference for lawyers, judges, law students, and businesses operating in Jordan.

Constitutional Court Decisions

In Decision No. 6 of 2023, the Constitutional Court struck down a provision granting the Aqaba Special Economic Zone Authority the power to collect an additional 25% of the cost of environmental damage removal, finding it violated Article 128(1) of the Constitution which prohibits laws from affecting fundamental rights and freedoms.

In Decision No. 5 of 2023, the court reaffirmed that equality before the law is a relative rather than absolute principle — the legislature has discretionary authority to differentiate between situations that are not identical, as long as this does not infringe on constitutionally protected rights.

Key Principles in Loan Contract Disputes

The Court of Cassation established that a bank may not calculate or charge interest other than the interest specifically defined in the loan contract. Where the contract specifies a fixed interest rate, that rate is binding and cannot be unilaterally altered.

The court also clarified that the right to demand all outstanding instalments is contingent on the existence of an acceleration clause in the contract — without such a clause, a claim for the full outstanding amount would be premature.

Key Principles in Insurance Contract Disputes

The court's General Assembly held that a driver's right to claim against an insurance company for medical expenses paid on behalf of an injured party only arises once the driver's liability is established by a final criminal conviction. The statute of limitations runs from the day following the date on which the criminal judgment becomes final.

Key Principles in Labor Law

• Annual Leave: The burden of proving that an employee has used their annual leave falls on the employer, not the employee.

• Release Forms: A release form signed by an employee while still employed, for which no payment was received, is void and has no legal effect.

• Oral Contracts: Where an employment contract was not documented in writing, the employee has the right to prove their entitlements by all available means of evidence.

• Overtime: The criterion for excluding certain persons from overtime provisions is the special nature of their work — this must be proven by evidence rather than assumed from job title alone.

Key Principles in Companies Law

The court confirmed that a general partnership that has not been registered in accordance with the Companies Law is nevertheless recognized as existing for the benefit of good-faith third parties who have dealt with it. The partners themselves, however, cannot invoke the company's legal personality in dealings between themselves.

This review is prepared by the legal team at Shraideh Law Firm as part of our commitment to keeping clients and the legal community informed of developments in Jordanian jurisprudence.