International Commercial Arbitration at Lebanon

Here’s a detailed overview of International Commercial Arbitration in Lebanon:

1. Legal Framework

Lebanon’s arbitration law is primarily governed by Lebanon’s Code of Civil Procedure, which contains provisions on arbitration.

In 2009, Lebanon adopted the Law No. 19 of 2009 on Arbitration (also called the Arbitration Law), which is based on the UNCITRAL Model Law on International Commercial Arbitration (1985).

This law applies to both domestic and international commercial arbitration, providing a modern legal framework.

Lebanon is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards since 2001, which facilitates enforcement of foreign arbitral awards in Lebanon and vice versa.

2. Arbitral Institutions

Lebanon has several local arbitration institutions, notably:

The Beirut Chamber of Commerce and Industry (BCCI), which has an arbitration center offering arbitration services for commercial disputes.

Parties often choose international arbitration institutions like:

International Chamber of Commerce (ICC)

London Court of International Arbitration (LCIA)

Lebanon’s strategic location in the Middle East makes it a convenient arbitration hub for regional disputes.

3. Enforcement of Arbitral Awards

Lebanon enforces both domestic and foreign arbitration awards under its Arbitration Law and by virtue of being a party to the New York Convention.

Lebanese courts generally show a pro-arbitration stance and respect arbitration agreements and awards.

Enforcement proceedings require courts to confirm arbitral awards, but refusals are rare and limited to grounds stated under the New York Convention (such as public policy or due process issues).

4. Judicial Role and Support

Lebanese courts play a supportive role in arbitration, including:

Enforcing arbitration agreements.

Assisting in the appointment of arbitrators when needed.

Granting interim measures upon request during arbitration.

Confirming and enforcing arbitral awards.

Judicial interference is generally minimal but courts have supervisory jurisdiction as per the Arbitration Law.

5. Practical Considerations

Parties engaging in contracts involving Lebanon should:

Include an explicit arbitration clause specifying the seat of arbitration.

Choose recognized international arbitration institutions if neutrality is a concern.

Consider the applicable law governing the contract and arbitration.

Lebanon is considered a reliable jurisdiction for arbitration within the MENA region due to its modern arbitration framework and enforcement regime.

Summary

AspectDetails
Arbitration LawLaw No. 19 of 2009 (UNCITRAL-based)
New York ConventionSignatory since 2001
Local InstitutionsBeirut Chamber of Commerce Arbitration Center
Preferred Arbitration RulesICC, LCIA, UNCITRAL
Judicial RoleSupportive with limited intervention
Enforcement of AwardsGenerally smooth and aligned with NYC

 

LEAVE A COMMENT

0 comments