The Spillover Effect of the Arbitration Agreement to Third Parties: An Analytic Study in Jordanian Legislation
Master's Degree, College of Law, Ajloun National University,
Dr. Mohammad Ali Khaled Al-Shurman
Assistant Professor of Civil Law, Amman Arab University- Jordan
Dr. Ahmed Fahd Mohammed Al-Batoush
Associate Professor, Ajloun National University, Faculty of Law, Department of Law
Ahmad Abdlkareem Sarairah
Assistant Professor, Department of Civil law, Faculty of Law, Ajloun National University,
Numan Mohammad Oudat
Assistant professor, Department of Law, Saudi electronic university,
Abstract
In essence, grounded in the doctrines of contractual freedom and pacta sunt servanda, every contracting entity is obligated to perform the duties stipulated within its agreement. Yet, the intensification of global commercial operations and large-scale economic initiatives has given rise to complex mega-projects, which often require the formation of several mutually dependent contracts. These contracts are usually intertwined through their subject matter, underlying cause, temporal coordination, and management by interconnected corporate entities. Such developments have prompted increasing criticism of the absolute application of this principle within the commercial arbitration sphere. Accordingly, this research seeks to delineate the personal scope of arbitration agreements and examine the justification for extending their applicability to non-signatory parties. To fulfil this purpose, the study employed a normative legal methodology, relying on both primary legal texts and relevant secondary materials. The findings indicate that implementing the doctrines of joinder and intervention plays a pivotal role in harmonising the interests of litigants and third parties alike. These mechanisms serve as vital procedural instruments within the arbitration framework, designed to overcome potential obstacles that could impede the arbitration process, in a manner analogous to litigation procedures. They also facilitate the expansion of the arbitration’s personal reach, thereby aligning the dispute’s scope with practical exigencies. The study ultimately advances several recommendations aimed at remedying the deficiencies observed in existing arbitration legislation governing commercial contract disputes. Chief among these is the adoption of joinder and intervention principles to ensure the equitable protection of the rights and interests of external stakeholders and to reinforce the pursuit of justice. Furthermore, the research advocates for the insertion of a new provision into the Jordanian Arbitration Law empowering arbitral tribunals to authorise the inclusion or participation of third parties in arbitration proceedings when deemed appropriate.