Enforcing arbitral awards in Lebanon

The Lebanese Code of Civil Procedure (decree n90 dated 01/09/1983; hereinafter “LCCP”) contains a chapter dedicated to arbitration. The first part governs domestic arbitration (and domestic awards) from articles 762 to 808, and the second part governs international arbitration (and international awards) from articles 809 to 826.

The LCCP differentiates between domestic awards and “international awards”. According to article 809 of LCCP, “[i]f the operation that is the subject matter of the dispute is linked to more than one country, the arbitration is international”.[1] In other words, pursuant to article 809 LCCP, an arbitration is considered international when it involves the interests of “international commerce”. An international award could thus technically be rendered both inside Lebanon (with the place of arbitration in Lebanon) or outside Lebanon (with a foreign place of arbitration), as long as it involves an interest of international commerce.

[1] Prof. Nayla Comair-Obeid, Lebanon in The Middle Eastern and African Arbitration Review 2022, Global Arbitration Review (April 2022).

Yes, Lebanon is a party to the New York Convention of 1958 (NY Convention).  Lebanon ratified the NY Convention on 9 November 1998. However, it made a reservation under article 3 (based on reciprocity).

The competent authority to grant recognition and enforcement of awards differs between domestic awards, international awards rendered in Lebanon and international awards rendered outside Lebanon.

In respect of international awards rendered outside Lebanon, the competent authority is the President of the first instance court in Beirut. If the international award is rendered inside Lebanon, the competent authority is the President of the first instance court where the award is made.[1]

In respect of domestic awards, the competent authority is the first instance court in the region of the agreed seat of arbitration. If the parties have not chosen the seat of arbitration, the competent authority is the first instance court in Beirut.

[1] Prof. Nayla Comair-Obeid, Lebanon in Arbitration Guide of IBA Arbitration Committee (February 2012).

The relevant articles for the commencement of the enforcement proceeding are articles 815 in conjunction with articles 793 to 797 of the LCCP. The award-creditor must submit a request for enforcement with the original award or a certified copy thereof alongside an original or certified copy of the arbitration agreement to the competent court (see question #3).

No, there are no additional requirements besides the rules set out in question #3.

Generally, in Lebanon the legal fees are determined based on the amount in dispute. However, article 13 of the Lebanese Judicial Legal Fees Law (hereinafter “Judicial Fees Law”) contains an exclusive enumeration of types of disputes where the legal fees are not determined based on the amount in dispute but according to a fixed rate. This includes the fees for the enforcement proceedings of both domestic and international awards, which amount to a fixed rate of 25.000 Lebanese Lira (equivalent to 15 euro as per the exchange rate as of 6 April 2022).

The proceedings for the recognition and enforcement of arbitral awards are ex parte.

According to article 793 of the LCCP, the domestic or international award must be submitted as an original or certified copy alongside an original or certified copy of the arbitration agreement.

Yes, documents in a foreign language must be translated into Arabic and authenticated by a sworn translator.

According to article 378 of the LCCP, each party must be represented by a lawyer admitted in Lebanon if the value in dispute is more than 1 million Lebanese Lira (roughly 590,00 euros according to the exchange rate as of 6 April 2022). If the amount in dispute is below 1 million Lebanese Lira, a party can represent itself.

The notification of all documents must be done by a civil servant, who is specifically appointed for judicial notification duties. Usually, the place of notification is the habitual residence of the relevant party in Lebanon.

There is no difference in Lebanese law in the procedure for the enforcement of domestic and international arbitral awards.

Both final awards and partial or interim awards that finally settle a matter in dispute can be enforced in Lebanon.

Lebanese courts will not refuse recognition and enforcement unless one of the grounds of annulment are applicable.[1]

The grounds applicable for annulment of international awards are set out under article 819 LCCP as follows:

• The award is rendered without an arbitration agreement or with an agreement which is null or void due the expiration of the time limit to render the award;
• The award is rendered by arbitrators who were not appointed in accordance with the law;
• The award rendered has exceeded the mandate conferred on the arbitrators;
• The award was rendered in violation of the parties’ due process rights;
• The award violated an international public policy rule.

Article 800 LCCP, on the other hand, specifies the grounds for annulment of domestic awards:

• The award is rendered without an arbitration agreement or with an agreement which is null or void due to the expiration of the time limit to render the award;
• The award is rendered by arbitrators who were not appointed in accordance with the law;
• The award rendered has exceeded the mandate conferred on the arbitrators;
• The award was rendered in violation of the parties’ due process rights;
• The award does not contain the mandatory elements of an award, which are: (i) the relief sought by the parties, along with the grounds and means of substantiating such relief; (ii) the names of the arbitrators; (iii) the legal reasoning; (iv) the relief granted; (v) the date of the award; and (vi) the signatures of the arbitrators;

The award violated a public policy rule.

[1] Marwan Karkabi, Civil procedural principles and arbitration, Sader, 2^nd volume.

The public order concept in Lebanon is not a fixed concept, but a vague, undefined notion. The Lebanese Court of Cassation has defined public order as a set of mandatory rules that protect the highest interests of the Lebanese society.[1]

[1] Fady Nammour, Droit et Pratique de l’Arbitrage Interne et International, Bruylant Delta LDJ, 3^rd edition (2009).

The decision recognizing the award is enforceable once 30 days have passed from the date of notification to the opposing party.

According to articles 805 and 819 of the LCCP, no remedies are available against a court decision recognizing an arbitral award.

According to articles 806 and 816 of the LCCP, a court decision denying recognition or enforcement of an arbitral award is subject to appeal within a deadline of 30 days starting from the date the decision was notified to the parties.

The legislator has not expressly addressed set off claims in the chapter related to arbitration. However, under the LCCP more generally, set off claims are possible.

The LCCP does not contain any provisions prohibiting the court to recognize or enforce an award that has been set aside at the seat of arbitration. However, the award must not violate international public policy.

Yes, the court can take interim measure to freeze the assets of the award-debtor.

The LCCP does not contain any rules regarding security for costs. However, such decisions are taken at times,[1] but publicly available jurisprudence on this is scarce.

[1] Mohamed Alem, Mazen Ghosn and Rana Kahwagi (Alem & Associates), Lebanon in International Arbitration 2021 of Chambers – Global Practice Guides.