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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
This ICC Guide to National Rules of Procedure for Recognition and Enforcement of Foreign Awards under the New York Convention is the third, updated edition to mark the 60th anniversary of the New York Convention. Country Answers, which reflect the state of law at 1 October 2018, have been provided in response to a Questionnaire drawn up by a task force of the ICC Commission on Arbitration and ADR.
A. The Contracting State and the New York Convention
1. Name of Contracting State (also specify jurisdiction(s), if relevant)
The Republic of Lebanon.
2. Date of entry into force of the New York Convention
9 Nov. 1998.
(Sources: Multilateral Treaties Deposited with the Secretary General, status as at 31 Dec. 2004, vol. II, p. 313; New York Convention of 1958, Art. XII(2).)
3. Has any reservation been made under Art. I(3) of the New York Convention regarding:
(a) reciprocity
Yes, Lebanon has made a reciprocity reservation under the New York Convention. The Government of Lebanon has declared that it will apply the Convention, on the basis of reciprocity, to the recognition and enforcement of awards made only in the territory of another Contracting State.
(b) commercial relationships
No.
4. In addition to arbitral awards made in the territory of another State, the New York Convention (Art. I (1)) also applies to arbitral awards not considered as domestic awards in the State where recognition and enforcement are sought. Are there any awards rendered in your country that are not considered as domestic awards such that the New York Convention and the answers to this Questionnaire are applicable to them?
Under Lebanese law, awards rendered in Lebanon that involve the interests of international trade are considered to be international awards. In the answers to this Questionnaire, the term ‘foreign awards’ refers both to awards rendered outside Lebanon and such international awards rendered in Lebanon.
(Source: Lebanese Code of Civil Procedure, Art. 809.)
B. National sources of law
5. What specific sources of law are applicable to recognition and enforcement of foreign awards (e.g. statutes, regulations, codes, directives, and other legal instruments)?
Arts. 792 to 795 and Arts. 809 to 815 of the Lebanese Code of Civil Procedure, enacted by the Decree Law 90/83, with amendments resulting from Law No. 440, dated 29 July 2002; and judge-made rules.
C. Limitation periods (time limits)
6.
(a) Is there a limitation period (time limit) applicable to the commencement of legal proceedings for recognition and enforcement of foreign awards?
Lebanese law does not provide any specific limitation period for recognition and enforcement of foreign awards. However, it may be argued that the limitation period applicable to legal proceedings for enforcement of judgments under Lebanese law also applies to foreign awards.
(b) If yes, what is the applicable limitation period (time limit) and when does it start running?
If the limitation period applicable to legal proceedings for enforcement of judgments also applies to foreign awards, the relevant limitation period would be 10 years from the date of the award.
(Source: Lebanese Code of Obligations and Contracts, Arts. 344, 349.)
D. National courts and court proceedings
7. What authority or court has jurisdiction over recognition and enforcement of foreign awards?
In civil and commercial matters, the president of the court of first instance, either in the place where the award was made if it is an international award rendered in Lebanon, or in Beirut if the award was rendered outside Lebanon. In administrative matters, the president of the Council of State. There is only one Council of State in the Republic of Lebanon, based in Beirut. Therefore, the enforcement of foreign awards in administrative matters has to be sought in Beirut. (Note: These are state courts.)
(Source: Lebanese Code of Civil Procedure, Arts. 770, 775, 793, 795 and 810.)
8. What requirements, if any, must be met for the authority or court to accept jurisdiction over recognition and enforcement of foreign awards (e.g. domicile or assets of respondent in the jurisdiction, etc.)?
A legitimate interest is required.
(Source: Lebanese Code of Civil Procedure, Art. 795.)
9. Is the first decision granting or denying recognition and enforcement obtained through ex parte or inter partes proceedings?
The first decision granting recognition or enforcement is generally obtained through ex parte proceedings. In such ex parte proceedings, the judge will only verify (i) the existence of the award and (ii) that recognition of the award is not manifestly contrary to Lebanese international public policy.
(Source: Lebanese Code of Civil Procedure, Arts. 795, 814, 815, 816 and 819.)
10.
(a) Is the first decision granting or denying recognition and enforcement subject to any form of appeal or recourse?
A decision denying recognition or enforcement of a foreign award rendered outside the Republic of Lebanon, or of an international award, is subject to appeal.
(Source: Lebanese Code of Civil Procedure, Art. 816.)
Appeal against the decision granting recognition or enforcement is only possible in the following cases:
(Source: Lebanese Code of Civil Procedure, Art. 817.)
A decision granting recognition or enforcement of an international award rendered in Lebanon is not subject to any recourse. However, an application may be made to the court of appeal to set aside such an award. This necessarily involves the reversal of any decision granting exequatur.
(Source: Lebanese Code of Civil Procedure, Art. 819.)
(b) How many levels of appeal or recourse are available against this decision?
Two, as a general rule.
At the first level, an appeal against the decision granting or denying enforcement of an international award or an award rendered outside Lebanon may be filed with the court of appeal.
(Source: Lebanese Code of Civil Procedure, Arts. 816, 817.)
Legal proceedings to set aside an international award rendered in Lebanon may be filed with the court of appeal in the cases provided for in Art. 817, as stated in Q.10 above.
At the second level, legal proceedings to set aside the decision of the court of appeal may be filed with the Court of Cassation, whose review is limited to legal as opposed to factual grounds.
A distinction must be made between arbitration by law and arbitration ex aequo et bono: a decision rendered by the court of appeal in relation to an arbitration ex aequo et bono can be referred to the Court of Cassation only if the court of appeal has set aside the award.
(Source: Lebanese Code of Civil Procedure, Art. 804.)
For administrative matters, only one level of recourse is possible: any objection to a decision denying enforcement may be raised in the judicial section of the Council of State.
(Source: Lebanese Code of Civil Procedure, Art. 795; Beirut Court of Appeal, 3d Chamber, decision no. 627, 7 Apr. 2005, Lebanese Review of International Arbitration, No. 34, p. 31 et seq.)
11. What is the earliest stage in legal proceedings for enforcement of foreign arbitral awards at which a party can obtain execution against assets (i.e. party actually obtains possession of assets as opposed to simply freezing assets)?
As a general rule, execution against assets in Lebanon may be obtained after the expiry of the time limit of 30 days for (i) filing an appeal against the first ex parte decision granting enforcement of an award rendered outside Lebanon (exequatur), (ii) commencing legal proceedings to set aside an international award rendered in Lebanon.
(Source: Lebanese Code of Civil Procedure, Arts. 820, 866, 867, and 869.)
Unless the arbitral award is subject to provisional execution, its execution is suspended by an appeal filed within the time limit.
(Source: Lebanese Code of Civil Procedure, Art. 820.)
E. Evidence required
12.
(a) What evidence must be supplied for recognition and enforcement of foreign awards (e.g. arbitral award, contract containing arbitration clause, affidavits, witness statements, etc.)?
The arbitral award and the arbitration agreement must be supplied.
(Source: Lebanese Code of Civil Procedure, Art. 814.)
(b) Is it necessary to provide the entire document or only certain parts (e.g. entire contract or only arbitration clause)?
It is necessary to supply the award in its entirety and the relevant pages of the document containing the arbitration clause.
(Source: Lebanese Code of Civil Procedure, Art. 814; court practice.)
(c) Are originals or duly certified copies required?
One original or a certified copy of the award; one certified copy of the arbitration clause (certified by either the arbitrators or a competent authority).
(d) How many originals or duly certified copies are required?
One original or one certified copy of the award; one certified copy of the arbitration clause.
(e) Does the authority or court keep the originals that are filed?
In Lebanon, the court of first instance keeps the original award, unless a written and reasoned request for the return of the original is submitted to the judge.
13.
(a) Is it necessary to provide a translation of the documents supplied?
Yes.
(b) If yes, into what language?
Arabic.
(c) Is it necessary for the translations to be certified and, if yes, by whom (official or sworn translator, diplomatic or consular agent (of which country?) or some other person)?
An award rendered in a language other than Arabic must be translated by a sworn translator.
(d) Is it necessary to provide a full translation of the documents or only a translation of certain parts (e.g. entire award or only part setting forth the decisions; entire contract or only arbitration clause)?
It is necessary to provide a full translation of the award and the arbitration clause. There is no need to provide a translation of the entire contract containing the arbitration clause unless requested by the judge.
F. Stay of enforcement
14.
(a) Can the authority or court stay legal proceedings for recognition and enforcement pending the outcome of an application to set aside or suspend the foreign award before the competent authority referred to in Art. V(1)(e) of the New York Convention?
An application made at the place of arbitration to set aside or suspend the effectiveness of an award rendered outside Lebanon does not provide grounds for staying or refusing recognition and enforcement of that award in Lebanon.
(b) On what other grounds, if any, can the authority or court stay legal proceedings for recognition and enforcement (e.g. forum non conveniens)?
There are no grounds under Lebanese international arbitration law for staying legal proceedings for recognition and enforcement.
(c) Is the granting of a stay of legal proceedings for recognition and enforcement conditional on the provision of security?
Not applicable.
G. Confidentiality
15.
(a) Do the documents filed in legal proceedings for recognition and enforcement form part of the public record? If yes, can any steps be taken to preserve the confidentiality of such documents?
The arbitral award and the arbitration clause as filed form part of the public record. In legal proceedings to set aside an international award rendered in Lebanon, or an appeal against the first ex parte decision granting recognition or enforcement of an award, the parties’ written pleadings form part of the public record. The Lebanese courts do not have a duty to preserve the confidentiality of these pleadings once they have been filed. It should be noted that no pleadings are filed in the first ex parte proceedings for recognition or enforcement. No steps can be taken to preserve the confidentiality of such documents.
(b) If there are hearings on recognition and enforcement, are such hearings confidential? If not, can steps be taken to maintain the confidentiality of the legal proceedings?
There are generally no hearings in the first ex parte proceedings for recognition or enforcement of an award.
Hearings held in any following inter partes proceedings are generally public. However, if all parties agree, the judge may decide that such hearings shall be confidential. The parties cannot take any steps to preserve confidentiality, in the absence of an agreement, as the principle is that the hearings must be public.
(Source: Lebanese Code of Civil Procedure, Arts. 376, 484.)
(c) Are judgments on recognition and enforcement published? If yes, can steps be taken to remove the names of the parties or avoid publication of confidential information (such as business or State secrets)?
Recognition and enforcement decisions are generally made by stamping the exequatur on the award. There is therefore no judgment as such and the exequatur is not published. Judgments in the following proceedings are part of the public record: (i) appeals of decisions granting enforcement of an award rendered outside Lebanon (exequatur) and (ii) proceedings to set aside an international award rendered in Lebanon. As a matter of practice, the names of the parties and their counsel are removed when a court decision is published.
H. Other issues
16. When, if ever, can a party obtain recognition and enforcement of interim or partial foreign awards?
It is possible to obtain recognition and enforcement in Lebanon of interim and partial awards made by arbitrators, provided these awards (i) relate to the merits of the dispute, or (ii) relate to jurisdiction, or (iii) terminate the arbitral proceedings on a procedural ground.
(Sources: principles of Lebanese procedure; Lebanese Code of Civil Procedure, Arts. 814, 815.)
17. When, if ever, can a party obtain recognition and enforcement of non-monetary relief in foreign arbitral awards (e.g. order requiring a party to deliver up share certificates or other property)?
As a general rule, it is possible to obtain recognition and enforcement in Lebanon of foreign awards granting non-monetary relief, except where there is a specific legal impediment, such as bank secrecy.
18. When, if ever, can a party obtain recognition and enforcement of only part of the relief granted in foreign awards?
In principle, the judge may only grant or deny recognition and enforcement of an award in full. However, it is possible to obtain partial enforcement of a foreign award if part of that award is separable from the rest of the award. Also, the judge will grant the exequatur to only part of an award if the other part violates public policy.
19. When, if ever, can a party obtain recognition and enforcement of foreign awards which have been set aside by the competent authority referred to in Art. V(1)(e) of the New York Convention?
An award rendered outside Lebanon that is set aside at the place of arbitration may still be recognized and enforced in Lebanon.
(Source: Principles of Lebanese procedure contained in the Lebanese Code of Civil Procedure.)
20. Are there any other procedural or practical requirements relating to recognition and enforcement of foreign awards which are worth mentioning (e.g. unusually high court costs, filing fees, stamp duties, obligation to post security as a condition for seeking recognition and enforcement, obligation to identify the assets that will be the object of enforcement, etc.)?
A fee varying between 25,000 Lebanese pounds (approx. USD 17) and 50,000 Lebanese pounds (approx.. USD 33) is to be paid to obtain recognition and/or enforcement of foreign awards in Lebanon.
(Source: Judicial Fees Law, 10 Oct. 1950 as amended by law no. 710 dated 5/11/1998, Art. 13 para. 68.)
If an award is executed against assets in Lebanon, a proportional fee of 2.5% of the sum awarded is to be paid to the Treasury. In addition, a fee amounting to around 1% is to be paid for the judiciary mutual fund stamp duty, the Bar Association stamp duty, and the fiscal stamp duty.
(Source: Judicial Fees Law, 10 Oct. 1950 as amended by law no. 710 dated 5/11/1998, Arts. 67, 71.)
Country Rapporteur: Nayla Comair-Obeid.