Jeddah court restores jewelry firm’s 55% stake to citizen after son’s denial of partnership

  • 12/8/2020
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JEDDAH — The Commercial Court in Jeddah issued a verdict upholding 55 percent partnership of a Saudi citizen in a gold and jewelry firm, established by him but run by his estranged son. The court ruling came following the filing of a lawsuit by the citizen, pleading that the firm is owned by him as it was established with his money though registered in the name of his son, the defendant, who later denied the partnership altogether. The citizen claimed that the registration of the establishment was made under the name of his son because he was his only son at that time. The father produced proof for his 90 percent partnership in the establishment as well as in its properties and bank balances, claiming that he agreed for 10 percent of partnership for his son and that was in exchange for managing the firm. However, the defendant, through fraudulent means, established his ownership of 45 percent of the firm and its properties and bank balances on the ground that he is running the establishment. Subsequently, the stake of his father and his inheritors reduced to only 35 percent. The father was allegedly forced to sign documents to ratify the renewed status of the establishment in an agreement that guarantees the son the largest percentage of control over the firm, according to the lawsuit. However, the defendant son denied the agreement, and even denied any partnership with his father, indicating that he started his business activity and obtained a license for a shop to sell precious metals. The court ruling in favor of the father was based on testimonies of witnesses and evidence that matched the plaintiff’s pleadings as well as vindication of his sincerity and pledge of truth. For his part, lawyer Faisal Al-Mashouh told Okaz/Saudi Gazette that the verdict is another evidence showing that it has become easier and faster for citizens to have access to their rights thanks to the spread of courts, especially commercial courts in various regions of the Kingdom. “The citizens can now have easier access to their rights and know about what they have and what they owe. It is no longer a shameful or unacceptable thing to go to courts, but rather a cultural phenomenon in the form of resorting to a third party either as an arbitrator, judge, or mediator to settle disputes, including those among members of the same family,” he added.

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