OMAN Law and Practice Contributed by: Mohammed Al Khalili, Jenna Al Bakry, Joud Lashko and Abdullah Al Raiisi, Al Khalili, Al Ghailani & Co LLP
3.12 Settlement and ADR Mechanisms Oman recognises conciliation, mediation and arbitra- tion as formal means of dispute resolution consist- ent with its civil law system and the legislative policy of promoting amicable settlement. Although there is no dedicated “collective settlement” or “class action ADR” regime, the Law of Arbitration in Civil and Com- mercial Disputes provides the principal statutory mechanism through which multiparty or collective claims may be resolved outside the ordinary courts. Pursuant to Article 1 of the Law of Arbitration in Civil and Commercial Disputes, the law applies to “every arbitration between parties with a personality under public or private law, irrespective of the nature of the legal relationship”, where such arbitration is conduct- ed in Oman or constitutes international commercial arbitration agreed to be governed by Omani law. Thus, multiparty contractual or commercial disputes such as those involving groups of consumers, investors or contractors may validly be referred to arbitration through a common submission or unified arbitration clause. Multiparty Arbitration and Procedural Autonomy The Law of Arbitration in Civil and Commercial Dis- putes expressly accommodates situations involv- ing multiple parties. Under Article 4 (3) of the Law of Arbitration in Civil and Commercial Disputes, the term “parties to the arbitration” includes “the parties of the arbitration even if they are multiple”, thereby acknowl- edging the procedural legitimacy of multi-claimant or multi-respondent arbitration. Article 5 of the Law of of Arbitration in Civil and Commercial Disputes confers extensive procedural autonomy, permitting the parties to “determine the procedure to be followed for a specific matter or to authorise a third party, including arbitral organisations or centres, to make that determination”. This provision enables parties to adopt collective arbitral procedures or institutional rules (eg, those of the Oman Commer- cial Arbitration Centre, the ICC, or the LCIA) suitable for group disputes. Furthermore, Article 25 of the Law of of Arbitration in Civil and Commercial Disputes reinforces this auton- omy by allowing parties to agree on the arbitral pro-
cedures to be followed, including submission to the rules of any arbitral centre in Oman or abroad ‒ failing which, the arbitral tribunal may “choose the arbitral
procedures it considers appropriate”. Enforcement and Judicial Supervision
Enforceability of arbitral awards, including those embodying settlements, is governed by Articles 55–58 of the Law of of Arbitration in Civil and Com- mercial Disputes. Pursuant to Article 55 of the Law of of Arbitration in Civil and Commercial Disputes, arbi- tral awards “have the power of res judicata, and shall be enforced taking into consideration the provisions stipulated in this law”. Under Article 56 of the Law of of Arbitration in Civil and Commercial Disputes, enforcement is obtained through an order of the president of the competent primary court, accompanied by: • the original award or a signed copy thereof; • the arbitration agreement; • a certified Arabic translation (if applicable); and • a report evidencing deposit of the award under. These provisions ensure that arbitral settlements and collective awards, once authenticated, acquire execu- tory authority equivalent to judicial decrees. This is a vital attribute in the absence of a statutory class action framework. Informal and Traditional Settlement In addition to statutory arbitration, customary concili- ation ( ṣulḥ ) remains recognised under Omani law as a binding contractual settlement mechanism. Although not codified within the Law of of Arbitration in Civil and Commercial Disputes, such informal agreements may be notarised and enforced as executory contracts under the Civil and Commercial Procedures Law. This traditional avenue remains prevalent in commercial, family and community disputes involving multiple claimants. In summary, collective redress through non-judicial means in Oman is principally facilitated by the Law of Arbitration in Civil and Commercial Disputes, which allows:
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