Kuwait increases claim limit for minor disputes to 2,000 dinars as per the new decree-law.
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Kuwait Raises Bar for Small-Claims Litigation
Dive into the latest judicial revamp as Decree-Law No. 72 of 2025 sweeps through Kuwait, reshaping the small-value financial claims landscape.
The reform marks a monumental step towards updating litigation procedures, with the threshold for small-value financial claims escalating from a grand 1,000 dinars to a whopping 2,000 dinars. This adjustment underscores the government's dedication to adjusting the law in sync with today's economic realities and judicial needs.
Under the revised law, Article (1) now shines bright with the elevated claim threshold. A facelift has also been given to Articles (2) and (9), polishing procedures and bringing them into crystal-clear focus.
In the new Article (2), our faithful court clerks are assigned a new task - sending notifications to defendants the old-school way or via fancy electronic communication like email. The legal system acknowledges the equivalence of electronic notifications to personal service, as ordered by the Court of Cassation and the Civil and Commercial Procedures Law.
Meanwhile, Article (9) embraces a sleek format for judicial rulings on small-value lawsuits. Gone are the days of lengthy justifications; now, brief summaries and concise legal reasoning reign supreme. These rulings are now final and enforceable by nature with no right of appeal, in line with Article (192) of the Civil and Commercial Procedures Law.
When defendants skip town without addressing a claim, the court rides to the rescue in cases where it sides with all the plaintiff's demands.Unable to offer a verbal explanation, the court is now exempt from offering reasoning for the judgment. This ensures a lighter workload for the court while recognizing the practical realities of uncontested small-value claims.
To add an extra layer of protection, the law clarifies that a court's refusal to award attorney's fees should not be misconstrued as a partial rejection of the plaintiff's claims. This safeguard prevents any misinterpretations, keeping the legal process flowing smooth and straightforward.
The fine print? More responsibility rests in the hands of the Prime Minister and ministers to give life to the decree's provisions right off the bat. With that, we bid farewell to the dozy 1989 decree and move forward with optimism, embracing a more efficient court system ready to handle those small-scale financial spats.
It's been over 35 years since the birth of the original decree. The reform signifies Kuwait's determination to modernize its legal infrastructure and bring greater efficiency to the table in resolving minor financial disputes.
In light of the revised decree, businesses and finance sectors may encounter more significant financial claims as the threshold for small-value claims has increased. The government's dedication to adjusting the law reflects its commitment to aligning it with today's economic realities and judicial needs.
Moreover, the new law streamlines the legal process, particularly in the area of small-scale financial disputes, by abolishing lengthy justifications in judicial rulings and enhancing the efficiency of the court system.
