This is an informal case summary prepared for the purposes of facilitating exchange during the 2025 WIPO IP Judges Forum.
Session 7: Calculation of Damages in Civil Proceedings
Supreme Court of Jordan [2020]: Case No. 2019/5827
Date of judgment: March 17, 2020
Issuing authority: Supreme Court
Level of the issuing authority: Final Instance
Type of procedure: Judicial (Civil)
Subject matter: Competition
Plaintiff: R.C. Company and Al-S. Pharmaceutical Warehouse
Defendant: J. Pharmaceutical Warehouse
Keywords: Unfair competition, compensation, moral damages, legal entities
Basic facts: The first plaintiff, a pharmaceutical manufacturer, produces, among other products, the extract C/Ozapine. It submitted a bid in a Ministry of Health tender for neurological and psychiatric medications, including this product. The defendant also submitted a bid for the same tender with a product of identical formulation but under a different name, manufactured by another company. At the same time, the defendant sent a letter to the Director-General of the Jordan Food and Drug Administration, alleging that the plaintiffs’ product was not registered and that the registration certificate submitted with their bid was invalid. This caused delays in the plaintiff’s ability to secure the tender until the Jordanian authorities verified the registration status, and until the second plaintiff traveled to Cyprus.
The defendant’s actions were deemed by the lower courts to constitute unfair
competition, contrary to fair practices in industrial and commercial affairs,
as they undermined trust in the first plaintiff’s products and commercial
activities.
Held: The Supreme Court upheld the Court of Appeal’s ruling, ordering the defendant to pay 22,000 Jordanian Dinars as compensation for moral damages, along with proportional fees and all expenses. No attorney’s fees were awarded, as both parties lost part of their claims. Statutory interest was also denied, since it had not been requested in the statement of claim.
Relevant holdings in relation to Calculation of Damages in Civil Proceedings: Article 267(1) of the Jordanian Civil Code provides that compensation extends to moral damages. Any infringement on another’s freedom, honor, reputation, social standing, or financial standing gives rise to liability. This provision is general and absolute, applying equally to natural persons and legal entities. Jurisprudence recognizes that moral damages suffered by a legal entity may arise in two ways:
Accordingly, both natural and legal persons may claim compensation for such harm. Since the Court of Appeal followed this reasoning, its decision was lawful, and the grounds for appeal were dismissed.
Relevant legislation: The Unfair Competition and Trade Secrets Law & Law No. 15 of 2000; The Civil Code No. 43 of 1976; and Civil Procedure Law No. 24 of 1988.