Do court costs halt services, and what is their legal impact?

The judicial fees system is one of the systems adopted in the Kingdom of Saudi Arabia, where it imposes specific fees on some lawsuits and judicial requests, with the aim of regulating the course of lawsuits before the judiciary, and reducing the filing of malicious lawsuits, and thus ensuring that individuals have access to justice on the one hand, and preserving the effort and time of the judicial bodies on the other hand.

This mechanism enhances the efficiency of judicial work, speeds up case resolution, and safeguards rights. It also helps to solidify the principle of accountability among litigants, ensuring that no one dares to...LitigationUnless he has a claim worthy of consideration.

In this comprehensive guide, we review the most important aspects of the judicial costs system and answer the most important questions related to this field in order to clarify the mechanisms and procedures in a simple and accurate way.

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What are the legal costs?

The Judicial Costs System in the Kingdom of Saudi Arabia was issued by Royal Decree No. (M/16) dated 1/30/1443 AH, with the aim of regulating the litigation process, reducing malicious lawsuits, and raising the efficiency of work in the courts, by imposing fees on a specific set of lawsuits and judicial requests.

The entity issuing the payment receipt for court costs

The Judicial Costs Department is responsible for issuing payment vouchers for costs due on lawsuits and legal applications, as follows:

Upon registering a lawsuit or application, the administration determines the amount of court costs due, in accordance with the provisions of the law and its implementing regulations, and notifies the plaintiff or applicant of this assessment.

After the lawsuit is concluded and a judgment is issued, the final assessment issued by the Judicial Costs Department becomes an enforceable instrument by which the amounts due are collected in accordance with the procedures stipulated in the Implementing Regulations.

Legislative objectives of the judicial costs system

The judicial costs system was introduced to achieve strategic goals in developing the Saudi judiciary, most notably:

1. Reducing malicious and sham lawsuits, as the obligation to pay court costs acts as a deterrent to those who file lawsuits without legal basis.
2. Enhancing the efficiency of judicial work by reducing the number of unserious cases, thus allowing judges to devote themselves to real cases and resolve them quickly.
3. Encouraging amicable settlement, as the system motivates litigants to resort to reconciliation and alternative means of dispute resolution to avoid court fees.
4. Rationalizing the use of the right to litigation by making it a financial responsibility in addition to being a legal right.

Are all cases subject to the judicial costs system?

Article Two of the Judicial Costs System stipulates that the general rule is that these costs apply to all lawsuits. However, the Saudi legislator has exempted specific categories of cases in order to facilitate matters for litigants or due to the nature of these cases themselves. The following are the most prominent lawsuits exempt from judicial fees:

1. Public criminal cases, which are cases handled by the Public Prosecution on behalf of society.
2. claimsPersonal StatusSuch as marriage, divorce and custody cases, with the exception of their petitions for reconsideration or appeal.
3. Disputes before the Board of Grievances, which are administrative cases in which the state or one of its bodies is a party.
4. Estate and estate division claims, including inheritance and will cases, with the exception of appeals and objections.
5. Final applications, which are applications submitted to the court without a dispute or opponent, such as an application to authenticate a power of attorney or correct a name.
6. Bankruptcy cases, in implementation of the goal of the Bankruptcy Law to revive those who are financially distressed and encourage them to resort to the judiciary.

Court fees payment deadlines and exceptions

The court fees system does not require payment of fees in advance for a lawsuit to be accepted or heard by the court. When the lawsuit is filed electronically, an invoice is issued for the amounts due, but actual payment is not made until the litigation process is completed with the issuance of a final judgment.

In other words, the judge considers the case and issues his ruling regardless of the payment of costs, which are to be collected later from the convicted party. However, there are specific cases stipulated by the system that require payment of fees in advance when filing the application, most notably:

1. Appeals.
2. Requests for reconsideration.
3. Applications to object to the assessment of court costs.

The system requires the convicted party to pay the court fees prescribed for the lawsuit, according to the percentages specified in the system’s Implementing Regulations.

If the claim has multiple elements and the plaintiff is not right in one part but not another, he is obligated to pay the costs due for that part in which he lost his claim, while the defendant bears the costs of the part in which the plaintiff’s rights were proven.

If the dispute ends with a settlement between the two parties before a final judgment is issued in the case, the court costs are divided equally between them, unless they agree otherwise.

It should be noted that costs are reduced to a quarter if a settlement is reached after the first session and before a verdict is issued, in order to ease the burden on the disputants and encourage amicable dispute resolution.

What is the percentage of court costs?

The assessment of judicial costs under Saudi law is subject to specific criteria that vary according to the nature and value of the case, as follows:

1. Costs in financial claims are calculated based on the amount claimed in the statement of claim.
2. The basis for claims relating to contracts is estimated at the value of the disputed item as specified in the contract.
3. In real estate ownership disputes, the valuation is based on the documented value of the property in dispute.
4. Legal costs are calculated as an inversely progressive percentage, decreasing as the value of the claim increases.

The following is an explanation of point four:

• If the value of the claim is less than 100,000 Saudi Riyals, the prescribed rate becomes 5%.
• If the value of the claim is from 100,000 to less than 500,000 Saudi Riyals, the rate becomes 4%.
• If the claim is from 500,000 to less than 1,000,000 Saudi Riyals, the rate becomes 3%.
• If the claim is one million Saudi Riyals or more, the rate becomes 2%.

Cases of reimbursement of court costs

The system stipulates that the payer of court fees is entitled to a refund if it is determined that they were not required or if one of the exemption cases applies, the most important of which are: if a judgment is issued in favor of the payer of court fees; if the plaintiff withdraws their case before the first hearing, in accordance with legal procedures; if the case is settled before the first hearing; when a request to recuse the judge is accepted; when a request to correct or interpret the judgment is granted; in an appeal, the payer is exempt from the fee if the appealed judgment is overturned in its entirety, and is exempt to the extent of the overturned portion if the overturning is partial; in a cassation request, the fees are refunded if the case is remanded to the court that issued the contested judgment; and in cases related to private rights that are filed as ancillary to criminal cases, if they are settled at any stage of the proceedings. The implementing regulations specify the procedures and rules governing this.

Do court costs halt services?

Court fees are not a reason to suspend services for the person responsible for paying them, as the court fees system stipulates that the fees due are considered a debt owed by the person against whom the judgment was issued, and are not a necessary condition for accepting or considering the case.

The collection procedures begin after the lawsuit ends with the issuance of a final judgment, whereby the enforcement judge collects the value of these costs from the convicted party in accordance with the procedures and mechanisms stipulated in the enforcement system.

The final assessment of court costs issued by the competent authority serves as an enforceable instrument through which the convicted person can be required to pay the debt.

Objection to court costs

The plaintiff has the right to object to the court costs estimated by the competent authority, and he can submit his objection within a maximum period of 15 days from the date of being notified of the assessment decision. The objection request is submitted electronically through the Najiz platform of the Ministry of Justice, to be considered by the head of the competent court or his delegate, and his decision in this regard is final.

Practical tips for dealing with legal costs

Now, how do you act legally in relation to court costs? Experts in...Abdulaziz bin Yasser Al-Anzi Law FirmFollow these steps:

1. Consult a specialized lawyer before filing a lawsuit to assess the feasibility of your claim.
2. Use the court costs calculator to find out the expected fees.
3. Explore the possibility of an amicable settlement before resorting to litigation.
4. Make sure you have sufficient documentation to prove your claim, and keep copies of it.
5. Pay the outstanding costs after the judgment is issued to avoid enforcement proceedings.
6. Provide documentation proving your exemption if you are exempt from the costs.
7. If there is an objection to the assessment, you must submit it within the legally specified deadline.

The importance of hiring a Saudi lawyer specializing in the judicial costs system

Given the legal precision inherent in the judicial system, hiring a specialized Saudi lawyer provides a genuine guarantee for protecting your rights and avoiding potentially costly mistakes. This is because an expert lawyer offers you real legal value manifested in several aspects, most notably:

1. Assistance in determining whether your claim is subject to fees or exempt, and accurately calculating the amounts due according to the nature and value of the case, using the fixed percentage and fee schedules stipulated in the system and its implementing regulations.
2. Submit a formal objection within the legal deadline of 15 days from the date of notification if an estimate of costs is issued that does not conform to the legal reality, and work to reduce or correct the amounts due before the competent authority.
3. Take advantage of exemption cases and submit supporting documents for the exemption, which will save you from financial burdens that you may not be obligated to bear.
4. Representation before enforcement authorities if court costs are converted into an enforceable instrument and referred to the enforcement judge, to ensure that collection procedures are followed legally, and to object to any illegal procedures.

Although court fees themselves do not lead to the suspension of services, neglecting them and not handling them properly can lead to them becoming enforceable debts. In this case, a lawyer can guarantee that you will not reach this stage and will spare you its indirect consequences.

Based on the above, investing in obtaining specialized legal advice fromAbdulaziz bin Yasser Al-Anzi Law FirmOr any accredited law firm in the Kingdom of Saudi Arabia is a smart step that protects your interests, saves you time, effort and money, and ensures that your case proceeds on the right track from the very first moment.

What are you waiting for?Contact us.