Court rules ‘lack of subject-matter jurisdiction’ on Al Mawarid’s SAR 32M claim

Al Mawarid Manpower Co. plans to appeal the preliminary ruling

Al Mawarid Manpower Co. announced that the Commercial Court in Riyadh issued, on Sept. 16, a preliminary ruling declaring lack of subject-matter jurisdiction in the case filed against Quick Services Co. for Electronic Marketing (MATIC).

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In a statement to Tadawul, the company said the ruling was based on the court’s view that the contract between Al Mawarid and MATIC was a service contract and not commercial.

The company added that its legal counsel will appeal the decision and escalate the case to the Court of Appeal.

Al Mawarid noted that there will be no changes to costs, as the amounts related to the claim were already allocated in its consolidated financial statements for 2024.

The company also stated that its lawyer believes the ruling has no bearing on the progress of the case, as it was issued on procedural grounds only and did not address the merits of the dispute. He added that there is a strong likelihood the appeal will be accepted.

Should the appeal be rejected, the case will be refiled before the General Court, the statement added.

According to data available with Argaam, Al Mawarid announced the filing of a lawsuit, on Aug. 26, with the Commercial Court in Riyadh to claim due unpaid amounts worth SAR 31.97 million from MATIC in accordance with the mutually signed agreements.