Online Dispute Resolution Service
The Saudi Center for Commercial Arbitration (SCCA) announces the launch of its enhanced Online Dispute Resolution service (ODR Service). The ODR Service offers sophisticated procedures and the latest technologies in a virtual format to resolve small-scale commercial disputes through arbitration. It is flexible and ensures fast and cost-efficient resolution of such disputes.
This step includes a relaunch of the ODR Platform and an enhanced arbitration protocol that accommodates the latest technology, while also incorporating guidance provided by the UNCITRAL Technical Notes on Online Dispute Resolution.
The SCCA ODR Protocol supplements and, where in conflict, modifies the time-tested SCCA Arbitration Rules. Together, they promulgate, inter alia, the principles of fairness, efficiency, effectiveness, due process, neutrality, and transparency.
ODR proceedings administered by the SCCA are backed by its own innovative online platform that allows parties to file and manage a dispute completely online without the need to attend a hearing in person.
Moreover, it enables all stakeholders in the process to upload, receive, store, exchange, or otherwise process communications and documents in a manner that safeguards data security.
Once a neutral expert arbitrator has been appointed, he must issue a final and binding award within 30 days from the date of his appointment.
The determination is generally based on party submissions without holding an in‑person hearing. However, a phone or video conference can be arranged by the SCCA on short notice whenever required.
Who can benefit from the ODR?
The ODR service is designed to address disputes where the sum in dispute (including counterclaims, set-offs, and cross-claims) does not exceed SAR 200,000, exclusive any costs of arbitration.
The ODR process is suitable for disputes arising out of both business-to-business and business-to-consumer transactions. The parties could be anyone from individuals with a simple dispute over an unpaid invoice to entrepreneurs and businesses of all sizes with cross-border, low-value sales or service contracts.
Even the largest corporations regularly need to resolve low-value mass claims, in which the costs and human resources required are often disproportionate to the economic value at stake. In addition, traditional judicial mechanisms for legal recourse may not offer an adequate solution for such disputes.
The SCCA ODR offers a fair and cost-effective alternative for resolving such disputes expeditiously.
What are the advantages of the ODR Protocol and Platform?
- A fully integrated ODR mechanism that results in a final and binding outcome to claims, decided fairly by an expert arbitrator at a low cost within 30 days from the date of his appointment.
- Efficient dispute resolution that does not tie up significant human and financial resources.
- Allows parties to file claims online 24/7 with an instant time-stamped notice of receipt.
- Parties have 24/7 access to the ODR Platform where all submissions and correspondence are uploaded and managed.
- Facilitates instant online correspondence for quick interaction among all stakeholders.
- Ensures confidentiality of the process and provides a secure platform.
- Ensures the appointment of a qualified neutral arbitrator who is a subject-matter expert.
- Determinations are based on documents only unless the parties request an oral hearing via phone or video conference.
- Retains all the benefits of the SCCA Arbitration Rules by replacing or modifying only those provisions of the SCCA Arbitration Rules that conflict with the provisions of the ODR Protocol.
What does it cost to file an ODR arbitration?
- SCCA Filing Fee: SAR 1,000
The filing fee is non-refundable and due on the day of filing the Notice of Arbitration. The filing fee also applies to counterclaims, set‑offs, and cross‑claims.
- SCCA Administrative Fee: SAR 1,000
The administrative fee is non-refundable and is due on the day of the appointment of the Arbitrator.
- Arbitrator Fee: SAR 7,000
The arbitrator fee is all‑inclusive and non-refundable and is due on the day of the appointment of the Arbitrator.
