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Law & Diplomacy
04 - January 25th thru January 31st 1999, Vol IX 
 
 
 
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Commercial Courts from Success to Downfall


By: Husain Al-Hubaishi,
Former Minister of Legal Affairs
for the President and Prime Minister of Yemen

A. In Search of a Model Court
For all reasons mentioned above, along with the prime cause envisaged by no response if not resistance to reform and no accountability, the Reformers seized their chance in 1976 and convinced the Authorities to promulgate a number of laws regulating commercial matters. Due to incompetence of the supreme court and Ministry of justice in administrating justice the state legal office reluctantly accepted to administer Commercial courts for a period of time. They were intended to be the milestone of all judicial reforms and a model to be copied by regular courts.

In addition other related laws were issued on court fees (law no. 116) for the first time and on civil and commercial procedure. The main law of Commercial courts (no. 40) of 1976 provided that the courts would be constituted in the center of provinces as determined by economic and judicial necessity. The law stipulated cases to be decided by the courts and since this stipulation is related to public order no party can choose otherwise. On matters of appeal there is a commercial circuit of appeal established in the capitol Sanaa acting as an immediate court.
There were reasons other than judicial for setting up commercial courts such as; the pace of economic change as determined by the transformation from subsistence agriculture to progression towards a cash economy and hence partial integration in the international economy. Yemen started reaching out for foreign participation in investment in the economy and one of those investors' main incentive requirements was efficient and speedy litigation. This is why in certain countries commercial courts are called "Investment Judiciary".

B. Courts: A Success and a Model
We emphasize here that the main aim behind establishing commercial courts as a separate judiciary was to set an example for regular courts to follow suit, to deter any delay tactics in due process of law and as a result enhance the performance of the judiciary as a whole. The idea of commercial courts was not against anything of good quality in the old system, whether it is the Sharia law or those judges of Sharia. The commercial law as a bill was discussed and consented to by some of the best judges equipped in Sharia and the first judge of all commercial courts was chosen from amongst those old judges versed in Sharia.

Nevertheless the resistance to reform and intrigues against any kind of judicial reform continued, but the very success of those commercial courts kept opposition dormant for a while. The apparent success was due to many factors. To mention some; firstly the judges were well-paid along with other incentives like lodging, communications, and expenses. Secondly, court buildings were well-chosen for judicial functions. Thirdly, judges were well protected from the outside and without interference, though they were accountable through inspection and reports. Judges were immune from corruption to the extent that in a few instances they reported to me cases of attempted bribery. All expenses of the courts were covered by litigation rates and dutiable charges which were collected for the first time in the country according to law. Judges of those laws were proudly rewarded when foreign courts started quoting their rules. Dr. N Omar of Alexandria University called for the establishment of courts on their model after praising their success.

C. Change of the Guards
In many developing countries, and Yemen is one of them, the main issues depend on personalities rather than institutions. Therefore when a new person takes the responsibility of a government body he has a free hand to apply his beliefs, since there are very few binding regulations and institutions to check and balance his deeds and actions.

Hence when a new government was formed at the end of the seventies, the New Guards of the judiciary saw to it that the commercial courts ended their semi-independence from the decaying judiciary. The steps taken included creating a first degree of appeal, thus killing the notion of speedy litigation in commerce matters. Secondly they decreed that the supreme court should have the last say. That court then, with due respect, was the last one equipped to deal with the worldly concept of commerce and investment. Thirdly it was the State office for legal affairs administering temporally those Commercial courts which suggested in good faith the transfer of Administration. The Ministry of justice provided that all structural work and facilities were maintained. Nothing of those provisions were fulfilled and all the goodness done was swallowed by the rotting system. Thus commercial courts were amalgamated with regular courts.

D. Segregated or Affiliated Courts?
By segregation here we mean detaching the good and much needed from the bad and can-wait courts because the latter ones need a longer time to reform. This separation of few specialized courts is meant to be temporary until a long-term plan for the reform succeeds and thus all courts to a degree are united under one judicial administration.
On the other hand we mean by affiliated courts, that all of the regular ones and the newly created courts for commercial, administrative, and constitutional purposes are united under the umbrella of one administration and one high court, be it qualified, or not qualified to deal with new concepts of law and its institutions.

The idea of a united judiciary is simple and preferable in countries where the judiciary is functioning equally well and according to law, but in Yemen when you amalgamate efficient courts with non-efficient ones the latter courts are treated as "more equal" and the modern efficient courts become infected with all the ailing of the traditional ones. On the other hand separate courts may not be a lofty idea, but as a means of gradual reform it is worth trying and after all there is no other way in sight because the overall reform is a theoretical blue-print which will take ages to achieve.

E. Slow Death of Commercial Courts
The beginning of the fall of commercial courts was manifested by deliberate, ignorant, and indifferent acts performed and not performed to undermine the functions of those courts. The last stroke was the appointment by the supreme council of judges most of whom have no knowledge whatsoever of commercial or financial or investment matters. In addition to the declaration by the court of appeal in Sanaa that all suits of commerce will be dealt with by the civil cases circuit in the fore- mentioned courts. Observers deduced from those moves that there is a fight behind the scenes to inherit commercial courts and enlarge certain circle pay-offs.

It was pointed out to those opposing men of law and Sharia that the Egyptian government which is embarking on a full drive to encourage investment, started setting up special units of commercial litigation. But in the absence of government interest which though claiming Economic reforms, those in the judiciary with vested interests will have the first say and the upper hand.
It is unfortunate that the commercial courts that once expelled their performances had been in decline since the eighties. But mostly "after darkness there is light" thus all of a sudden before the end of last year the world bank pressed the government to see that regular or special courts deal equitably and in a speedy manner with legal suits concerning investment and credits.

The government's response through it's central bank was to create courts for settling financial disputes, but at the last moment it was convinced to receive what remained of commercial courts since the issue concerns investment and commerce as a whole, thus new decrees were passed to give commercial courts a degree of administrative and financial independence. However, the old guards saw to it that those nominated to the restored courts were judges from their ranks, or competent judges who would not fall into the trap and thus refuse the appointment. Hence the last try to save the courts was doomed to failure, and those reformers started thinking of the second escape, but this time to arbitration.

 
 
The League of Sons of Yemen
Political Parties Series: #1

Starting with this issue, the Yemen Times will run profiles of the political parties of Yemen. We will print the information as received from the parties.
The aim is to inform the public - local and international.

Historical Origin
The League of the Sons of Yemen (LSY) was established in April, 1951 under the name of the League of the Sons of the South. Nationalist figures from north and south of the country participated. The League's main aim was to secure independence of the southern part of the country, then to establish the unity of Yemen. It assumed its new name following reunification of the country in 1990 and is seen as one of the main opposition political parties.

Political & Economic Doctrine
In printed material made available to the 'Yemen Times', the League said that the most important distinctions of the League's doctrines and programs are its objective view toward the importance of unity, in addition to its moderation and anti-violence trends. "We are an Islamic party which believes in dialogue with the others and in justice, moderation, and tolerance."The League also believes in economic freedom and market policy and rejects monopoly. It calls for protecting the poor through the availability of social and health care in addition to providing work opportunities and elevating professional competency and rehabilitation.

"We advocate balancing political, economic, and social interests and the establishment of local rule with vast jurisdictions, and we believe in the election according to relative voting lists." Such an option ensures that the parliament would represent all sectors of the society. The League further calls for forming a Shoura (Consultative) Council on the basis of free elections to complement the Council of Deputies (parliament).
"We support the presence of an independent judiciary system that secures justice, security and stability and the independence of the official media away from government control."
The League also calls for a vivid and active role for women in the society and backs national dialogue in which all political, social, economic, and religious elements should participate.

The League is a Modern Party
The League is a modern party which views the government as a board of directors of a company, the people being its shareholders who can replace that board. The party is independent in its ideology and moves and is under no guardianship from anybody outside Yemen. The party is proud for being the first to underline the importance of neutralizing the presidency of the country in November 1990 away from partisan struggle. It was the first to ask the supreme court to supervise its 8th general conference elections in 1992.
The party also endorsed transparency in partisan work when it recorded all details of its 8th general conference on video tapes, providing them to whoever wishes. The League gave women the opportunity to rise to higher posts.
It was the first party to establish centers for illiteracy eradication and rehabilitating women in Aden and Sanaa, but which were looted in the 1994 war. The party further tabled practical solutions to problems of nationalization and confiscation in the southern and eastern provinces, but which were not heeded by the authority.
The League, finally, tables alternatives to what it opposes, most prominent of which being the local rule's draft law.

The Party's Hierarchy
The party's hierarchal structure is as follows:
-Party Leader.
-Secretary General.
-Executive Committee (22 members).
-Central Authority (71 members).
-The General Conference (held once every five years under normal circumstances).
The Executive Committee, which also groups the President and the Secretary General) is the daily dynamic tool of the party and is divided into several bureaus including the General Secretariat. The Committee convenes weekly. The Central Authority, which normally meets every three months, is the party's expanded leadership. It elects members of the Executive Committee, drafts the party's strategy, and amends its bylaws whenever needed.
The party has suffered a lot from the displacement of its leaderships and members ever since its establishment and until 1989 by the British colonialists and later by the dictatorial rule that took over control of the southern part of the country since 1967. Hundreds of its cadres further left the country following the 1994 war which had its impact on the party but which at the same time elevated its cadres' competency in dealing with various circumstances.

The League General Conferences
The League held its first general conference in Aden in 1951 and was followed by five others in the same place with the sixth being held in 1957. The party could not hold its seventh general conference until November 1986 due to the deportation of its leaders at the hands of the British occupation authority then because of the totalitarian regime's practices following independence of the southern part of the country in 1967.
Even that seventh conference was held secretly within and outside the country and the results brought Abdul Rahman Al Jaffry as party Leader and Mohsin Mohammed bin Farid as Secretary General.
The 8th conference was held in Sanaa, in February 1992 under the supervision of the Supreme Court, and five women were elected to high posts; two as assistants to the party Leader and another two as assistants to the Secretary General.

The Party's Participation in the 1993 General Elections
The League believed that elections were part of the democratic process and realized that they would lack integrity but it hoped that the process would start correctly. The party tabled a distinguished election program but with nothing else to support it while the parties in power were backed by the army, police, media, the Central Bank and government jobs.
Thus, the party's 90 candidates failed. However, books could be written about the forgery, threats and use of money and arms to ensure the success of the others.

The League and the 1997 General Elections
The League refrained from entering the 1997 Parliamentary elections since they came shortly following the 1994 war which greatly affected the country's political and social balance.
The party expressed the opinion that the country's ruling powers and the opposition should meet to evaluate the reasons and results of that war and to heal the wounds it inflicted through a real and comprehensive national reconciliation.
The League, along with other opposition parties, considered that indulging in the elections without such a conciliation and without amending the legal and procedural violations that preceded the polling, would cause the elections to lose their meaning and the results would be known beforehand. Thus the party decided to boycott the elections.

By: Dr. Salah Haddash,
Yemen Times Managing Editor

 
 
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