Competing rationalities: The evolution of arbitration in commercial disputes in modern Jordan.

258 Pages·2014·7.74 MB·English

The London School of Economics and Political
Science
Competing Rationalities: The Evolution of Arbitration
in Commercial Disputes in Modern Jordan.
Aseel Al-Ramahi
A thesis submitted to the Department of Law of the
London School of Economics for the degree of
Doctor of Philosophy, London, July 2008
UMI Number: U615945
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In dedication to
My teacher, inspiration and ideal
Dr Fahmi Zimmo
The only Dad that I ever knew
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Declaration
I certify that the thesis I have presented for examination for the
MPhil/PhD degree of the London School of Economics and Political
Science is solely my own work other than where I have clearly
indicated that it is the work of others (in which case the extent of any
work carried out jointly by me and any other person is clearly
identified in it).
The copyright of this thesis rests with the author. Quotation from it is
permitted, provided that frill acknowledgement is made. This thesis
may not be reproduced without the prior written consent of the author.
I warrant that this authorization does not, to the best of my belief,
infringe the rights of any third party.
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Abstract
International commercial arbitration is recognised as the most widely
accepted form of dispute resolution in international trade in both the Middle
East and the West. But in the Middle East divergent, competing rationalities
are constantly close to the surface and repeatedly collide in arbitration cases
of international commercial disputes. The Islamic Middle East focus is on
maintaining tradition and safeguarding relationships, features that both stand
at the heart of the dispute resolution culture of the region. By contrast, in the
West, international commercial arbitration is adversarial and individualistic,
following the neo-classical model of law. In recent times when the western
model has been superimposed on this deeply entrenched dispute resolution
culture, hostility and dissatisfaction have resulted. In addition, instances of
perceived or actual Western ignorance and bias against Shari ’ah have led to
even more resentment on the part of the Arab players. Both Islamic law and
tribal customs impose a duty of reconciliation on any intervener in a dispute.
This third party must attempt to help the disputing parties reach a settlement
that is just and fair. This clash of cultures is explored in detail in this thesis
which uses Jordan as the case study. Jordan has a rich and embedded tribal
history and traditions, which remain very much a part of contemporary
society. The tribes of Jordan are critical stakeholders of the state and their
customs are presented as key pillars of the identity of a Jordanian.
Reconciliation is a positive feature of Middle Eastern dispute resolution
dimensions of which this thesis suggests could be incorporated in the
international commercial arbitration model, making it more representative of,
and responsive to, a wider variety of cultural traditions.
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Acknowledgements
I would like to start by thanking my doctoral supervisor, Professor Simon
Roberts for all his support and advice. Professor Roberts taught me to look at
the law in context and introduced me to the inspiring, fascinating world of
anthropology and more specifically ethnography. I also want to thank Dr
Hamza Haddad, Jordanian lawyer and Professor for encouraging me to fall in
love with arbitration and alternative dispute resolution.
I want to thank my friends and colleagues, especially Alpa Ghelani, Marina
Brilman and Filipinna Marziano who stood by me, helped me and supported
me throughout this long journey. Without them this journey would have been
even more difficult. My gratitude to: David Hicks; Pramod Reddy and Debbie
DeGirolamo, colleagues in the PhD program at the LSE; Dr David Kershaw, a
lecturer in law at the LSE for criticisms, challenges and questioning of my
arguments and views; and Najeeb Maa’bra for his assistance with the Arabic
literature.
The Central Research Fund of the University of London, the Arab-British
Chamber of Commerce and the law department at the LSE contributed
financially.
I also want to note my appreciation to the Jordanian lawyers and engineers who
gave me their time, wisdom and granted me an insight into the world of
arbitration in Jordan. Also, I am grateful for the support of the academic
community in London and from all across the world, and especially the many
Arab lawyers and academics, who helped shape my views on this subject
through conference papers, comments and informal discussions.
I also would like to thank my family for keeping me firmly grounded and
focused on the bigger picture. I note my appreciation for my mother, Mrs
Tuhama Zimmo, who kept pushing me when it was easier to comfort me. I also
want to thank my aunt Mrs Haifa Sabi-Aish for her support and love.
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Table of Contents
Declaration..................................................................................................................3
Abstract.......................................................................................................................4
Acknowledgements.....................................................................................................5
Table of Contents.......................................................................................................6
Chapter One: Introduction...................................................... 9
1.1 Two Arbitration Cases................................................................................10
1.1.1 An international Dispute.....................................................................11
1.1.2 Commentary........................................................................................13
1.1.3 A Local Arbitration.............................................................................15
1.2 Thesis Outline.............................................................................................18
1.3 The Growth of International Commercial Arbitration................................19
1.4 Arbitration in Jordan...................................................................................20
1.5 Legal Culture...............................................................................................26
1.6 Methodology...............................................................................................35
Chapter Two: The International Commercial Arbitration World..............................38
2.1 The Players..................................................................................................42
2.2 The Practice................................................................................................46
2.3 The Discourse.............................................................................................48
2.4 The Culture............................................................... 59
Chapter Three: Sulh: The Essence of Islamic Dispute Resolution............................66
3.1 Reconciliation in Pre-Islam.........................................................................72
3.1.1 Duty to Reconcile (Sulh) in Islam...............................................................76
3.1.2 Is Sulh an Unequivocal Duty?....................................................................78
3.2 Sulh in Arbitration.......................................................................................81
3.2.1 Qur’an.................................................................................................81
3.2.2 Sunna...................................................................................................82
3.2.3 The Hanafi School...............................................................................84
3.2.4 The Shafi School................................................................ 84
3.2.5 The Maliki School...............................................................................85
3.2.6 The Hanbali School.............................................................................85
3.2.7 The Medjella of Legal Provisions.......................................................85
3.3 ‘Arbitration is Part of Our Culture’.............................................................88
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Chapter Four : Arbitration in the Middle East During the 20th Century....................93
4.1 The Hostility...............................................................................................95
4.2 The Shift in Attitudes..................................................................................99
4.3 The Reality.................................................................................................105
4.5 The Crisis...................................................................................................108
4.6 International Commercial Arbitration through the eyes of Jordanian
Arbitrators................................................................................................................110
4.6.1 International Arbitration....................................................................Ill
4.6.2 International Chamber of Commerce (ICC).....................................112
Chapter Five: Jordan and its Tribes..........................................................................115
5.1 The Tribal Foundations of the Jordanian State.........................................117
5.2 Tribal Justice and Dispute Resolution......................................................126
5.3 The Tribal Legal System...........................................................................133
5.4 Tribal Justice after the Jordanian State.....................................................142
5.5 Tribes and Dispute Resolution..................................................................145
5.5.1 Jala’...................................................................................................148
5.5.2 Atweh................................................................................................150
5.5.3 The Negotiations...............................................................................152
5.5.4 Sulh...................................................................................................153
Chapter Six: Formal Dispute Resolution Mechanisms............................................158
6.1 The Judiciary.............................................................................................158
6.1.1 The Judicial Institute of Jordan.........................................................160
6.1.2 Case Management in Jordanian Civil Courts....................................162
6.2 Jordanian Lawyers....................................................................................163
6.3 Arbitration Act 2001.................................................................................165
6.4 Foreign Awards.........................................................................................170
6.4.1 Enforcement of Foreign Judgements Act..........................................170
6.4.2 The Riyadh Convention....................................................................171
6.4.3 The New York Convention 1958...........................................:.........173
6.5 The Mediation Act....................................................................................174
6.6 The Commercial Chamber........................................................................176
6.7 Arbitration in Amman as Seen by the Arbitration Players.......................177
6.7.1 Perceived Advantages and Disadvantages of Arbitration.................178
6.7.2 Lawyers and Arbitration...................................................................179
6.7.3 Arbitration is a Business...................................................................182
6.7.4 The Story of the Courts and Arbitration............................................183
6.7.5 Advantages of Arbitration Compared to the Court...........................184
Chapter Seven: Informal Dispute Mechanisms.......................................................194
7.1 Wasta and the Tribes..................................................................................194
7.2 Wasta in Modem Jordan..........................................................................201
7.3 The Changing Face of Wasta....................................................................205
7.4 Partisan Arbitrators and Wasta..................................................................212
7.5 Differences between East and West Embodied in the Use of Wasta 216
7.5.1 Wasta and Transaction Formation....................................................217
7.5.2 Wasta and Conflict Resolution..........................................................221
Concluding Remarks.............................................................................................230
The Competing Rationalities as Described in this Thesis........................................230
The Paradox of Competing Rationalities.................................................................233
Bibliography...........................................................................................................239
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