Part 2 -CASE LAW N° 1  

Page	I/ Lebanese Case Law*  A/ Courts Judgments   a- Domestic Arbitration
59	1 - Arbitral award - Recourse - Acceptance - Omissions of arbitrator - Foreign currency - Contradiction -Annulment - Interpretation. Court of Appeal of Beirut, 1st Section, Decision of 10/11/1987.
60	2 - Arbitration - Court of Appeal - Competence - Obligations of arbitrator - Annulment - Privity of contracts. Court of Appeal of Beirut, 1st Section, Decision of 10/11/1987(Kassabian / Bank Pharaon & Chiha)
60	3 - Arbitral award - Recourse - Effects - Discharge - Public policy - Statute of Limitation - Commencement. Supreme Court, 1st Section, Decision No 5 of 4/ 1/ 1990. (Geitani / Engineering & Construction Company)
*	Case of reference, décisions are published in chronological order together. Partie's names are then mentioned and a comment where relevant.
61	4 - Amiable composition - Arbitrators - Competence - Arbitrator's task Supreme Court, 1st Section, Decision No 9 of 13/ 12/ 1990. (Achkar / Bitar)
61	5 - International arbitration - Condemned party not party to the arbitration - Rejection of international arbitration award - Annulment (No). Supreme Court, Decision No 13/1991 of 25/ 4/ 1991. (Mohammad Tamin Salaheddine Khayat /Oxford University Publishing Company).
62	6 - Drafting of the Arbitration Agreement : Amendments and corrections. Supreme Court, 2nd Section, Decision No 22/93 of 8/4/1993. (Jean Tamer & Abdo Chemaly / Antoine Chahine & Sons Company)
62	7 - Challenge to arbitrator -Voice recording. Tribunal of 1st Instance of Beirut, 3rd Section, Decision No 98 of 31/ 8/ 1993 (Popular Credit Bank / Katrib).
62	8 - Recourse - Challenge to arbitrator - Appeal - Privity of arbitration - Quality of Attorney - Previous opinion of the arbitrator - Evidence (writing or confession) - Secret voice recording. Court of Appeal of Beirut, 9th Section, Decision No 766/ 93, of 15/ 12/ 1993 (Popular Credit Bank / Mr. Maurice Baz, Arbitrator Mr. Joseph Abou Charaf and Mr. Michel Joseph Katrib; Reversal of arbitral award decision which has decided to reject the appeal against the decision of the Tribunal of 1st Instance of Beirut, 3rd Section, Decision No 225/ 93 of 31/ 8/ 1993).
63	9 - Arbitral award - Conditions - Possibility to appeal - Recourses. Court of Appeal of Beirut, 9th Section, Decision No 93/94, (Kamel / Zouein Mounié)
63	10 - Arbitration - Recourse - Impartiality of arbitrator - Adversity - Evidence - Quality. Court of Appeal of Beirut, 9th Section, President Tabbarah, Decision No 766/ 1993, of 5/ 12/ 1994. (Popular Credit Bank S.A.L. / Dr. Edouard Eid).
64	11 - Arbitrator - Challenge - Adjudication - Appellant not party - Statute of limitation Bar. Court of Appeal of Beirut, 9th Section, Decision No 94 of 21/ 2/ 1994 (Kmati & others / Tabet).
64	12 - Recourse in cassation against an arbitral award - Acceptance of cassation. Tribunal of 1st Instance of Beirut, 3rd Section, Decision No 65 of 22/ 3/ 1994. (Souleiman Hector Franjieh / Emile Khoury, Antoine Amin El-Khoury & Khalil Amin Khoury).
65	13 - Arbitral award - Annulment - Cassation (no) *. Supreme Court, 1st Section, Decision No 20/1994 of 5/4/1994 (Abd el Rahman Al-Tabchi / Mohammad Aref Abou Zanja).
65	14 - Arbitral award - Recourses - Annulment. Court of Appeal of Beirut, 3rd Section, Decision No 19/1994, of 14/ 4/ 1994. (Helou / Helou).
66	15 - Constitution of the arbitration panel. Supreme Court, 1st Section, Decision No 24/94 of 26/ 4/ 1994 (Edouard Eid / Popular Credit Bank).
66	16 - Arbitral award - Appeal - Annulment - Cassation - Adjudication -Possibility of cassation of the award (No). Supreme Court, 1st Section, Decision No 32 of 14/ 6/1994* (Emile Fares El Kousseifi / Byblos Tourism Company S.A.L.)
67	17 - Arbitral award - Ordinary recourses - Cassation - Waiver - Admissibility - Foreign currency - Borrowing in dollars. Supreme Court, General Assembly, Decision No 37/94 of 30/6/1994, by majority with two dissident opinions (President Roger Chidiac & President Monah Mitri), case note by Dr. Abdo Ghossoub.The Lebanese Company for Construction & Development (Kassabian / Bank Pharaon & Chiha S.A.L.)
71	18 - Arbitral award - Recourse - Fees - Exequatur - Appeal - Fixed fee and not proportional fee - Evaluation. Court of Appeal of Beirut, 9th Section, Decision Number 186/94 of 11/7/1994, (The Lebanese Steel Company / Teissen Stal Union).
72	19 - Arbitral award - Motivation - Arbitration or Amiable Composition - Express terms - Competence - Principles - Annulment - Effects on competence of the court - Procedure - Place of issue - Binding effect - Final character - Waiver - Minutes of arbitration. Court of Appeal of Beirut, 9th Section, Decision Number 4/94 of 17/10/1994, President, Tabbarah, Choueiri, and Ajlani (Fadi Yammine & others vs. Mobayed).
73	20 - Arbitral award - Appeal - Annulment - Restrictive interpretation - Compromise - Waiver - Annulment procedure - Annulment of the arbitral award - Non registration in the Real Estate Register - Statute of Limitation. Court of Appeal of Beirut, 9th Section, Decision Number 1017 of 29/12/1994. (Traboulsi & Haidar / Hamami & Choueikati, Jaber & Kajal).
	* See Abdo GHOSSOUB, comments on No 17.
74	21 - Challenge of the arbitral award before its notification - Conditions - Production of ordinary copy - Waiver - Arbitration clause - Arbitration agreement - Duration of arbitration - Extension - Deliberation - Signature - Exequatur. Court of Appeal of Beirut, 9th Section, Decision Number 1019 of 29/12/1994 (Consumer Cooperative / Salameh).
75	22 - Arbitration procedure - Annulment - Representation - Principles - Capacity - Minority - Custody - Non representation of one of party one - Nullity - Public policy - Challenge - Duration - Third party - Notification - Effects. Court of Appeal of Beirut, 9th Section, Decision of 30/1/1995. (Khalil / Souren Khanamerian).
75	23 - Arbitration panel - Constitution - Absence of the chairman - Annulment. Court of Appeal of Beirut, 9th Section, Preliminary Decision of 23/1/1995. (Itani / Chaïb).
76	24 - Foreign ownership - Public Policy - Lease agreement - Promise to sell - Decision to buy - Amiable composition - Option on time - Extension. Court of Appeal of Beirut, 9th Section, Decision Number 267/95 of 16/3/1995 (AssociationTerre des Hommes / Mohammad Bassam Amine & wife).
77	25 - Arbitration - Consolidation - Admissibility of appeal - Validity - Denaturation. Supreme Court, 1st Section, Decision Number 13/95 of 30/3/1995 (Michel Boutros Helou / Antoine Boutros Helou)
78	26 - Annulement of an arbitral award - Apparent Proxy - Adversarial procedure. Court of Appeal of Beirut, 9th Section, Decision Number /95/ of 13/11/1995 (Morico Enterprise / Vision Company).
	b/ International arbitration in Lebanon
79	27 - Exequatur - Foreign arbitral award - Arbitration clause - Option of arbitration - Agreement - Opposition - No exequatur . Supreme Court, 1st Section, Decision Number 11 of 27/4/1987 (International Company for Middle East & Africa / Mita Import-Export).
80	28 - Commercial agency - Arbitration - Appeal - Admissibility of cassation - Waiver - Public policy - Settlement - Civil procedure - Motivation. Supreme Court, 1st Section, Decision Number /16/ of 7/7/1988 (Gérard Fortier Company / Georges Abou Adal Enterprise).
81	29 - Exequatur - Arbitration clause - Admissibility - Applicable law (Law of 1983) - Award based on previous law - Relative effect. Court of Appeal of Beirut, 1st Section, Decision Number /227/ of 11/7/1988 (Khayat / Oxford University Publishing Company).
82	30 - International arbitration - Foreign award - Condemned party not party to the arbitration - Rejection of the award - Annulment (no). Supreme Court, Decision No 13/1991 of 25/ 4/ 1991. (Khayat v.Oxford University Ed.).
82	31 - Exequatur - Arbitration - Foreign award - Opposition - Effects - Suspension - Supreme Court, 2nd Section, Decision Number /13/ of 18/2/1993. (Eid Case).
82	32 -Commercial agency - Exclusivity - Termination of the agreement - Arbitration clause - Protection of agent - Public policy - Article 5, Legislative Decree No 34*. Tribunal of 1rst Instance of Beirut, 4th Section, Decision No 149/2914 of 16/6/1993, (Rodolphe Saadé & Co S.A.L. / Cypriot Airlines).
83	33 - International arbitration - ICC award - International agency - International Agencey - Ultra vires - Violation - Law-Decree N° 34/67 - Lebanese courts - Law - Competence*. Court of Appeal of Beirut, 14th Section of 2/9/1993.(Middle East Telecommunications SAL / OKAI Electric Industry Company SARL).
83	34 - Commercial agency - Arbitration - Arbitration clause - "Company de facto " - "Company created de facto" - Private international law . Tribunal of first instance - 3rd Section specialized in commercial matters - Decision Number 2898/92 of 3/2/1994 (Kazzi & Co S.A.L. / Bell's Whisky & United Distilleries Company B.L.S.)
84	35 - Exclusive agency - Merger -Agreement Succession - Korean Arbitration Panel - Appreciation. Tribunal of first instance - 3rd Section - Preliminary Decision of 5/4/1994 (Middle East for development Company / Comho & Zeinoun).
	* See case note by Nathalie NAJJAR, on page 57 (part I).
	B - Lebanese and Foreign Arbitral Awards.
86	36 - Company's exploitation agreement - Domestic arbitration - Termination of contract - Admission of arbitration - Fictitious character - Additional request - Arbitration object - Change - Evaluation - Down payment - Arbitration fee. (Arbitral award of 24/ 6/ 93 issued by President Youssef Saadallah El Khoury, Mr. Edmond Rizk and Dr. Ibrahim Najjar, with partial dissident by Dr. Ibrahim Najjar (VDL/JH).
86	37 - Banks - Domestic Arbitration - Arbitrator - Trading in Dollars - Interest. Arbitral award of 7/3/86 issued by the arbitrator Mr. Emile Abou Kheir (LTA / BPC).
88	38 - Commercial agency agreement between an Italian and Saudi - International arbitration - Application of Islamic law - Execution (No) - Trade Promotion (No)- Compensation. Arbitral award of 27/8/94 issued by an Arbitration Panel composed of Attorneys Abdo Oueidate, Walid El-Nakib, Abd- El Latif Kassem (PV / RS).
89	39 - Promise to sell a foreign tenant - Arbitral award - Real Estate Register - Lebanese public policy - Option - Nature - Application of the Foreign Ownership Law -Statute of limitation - Extension- Equity principles - Powers of the amiable compositeur . Arbitral award of 17/1/94 issued by the amiable compositeur Professor Hassan Rifaat (TDH / MBA).
	II/ Arab Case Law   A/ Court decisions
93	Egypt :  40 - The most important principles found by the Egyptian Supreme Court in civil and commercial Arbitration.
104	41 - The Extracted principles from the Arbitral Awards given under the authority of Cairo Regional Center for International Commercial Arbitration.
106  108  110	Jordan :  42 - Decision of 8/3/1987.  43 - Decision of 28/8/1991.   44 - Decision of 6/2/1992.
113	B/ Legal Principles and arbitral awards  a/ Egypt   45 - International arbitration - Cairo Regional Center for International Commercial Arbitration - Uncitral - International sale contract - Public tender - Arab and European companies - CAF Free out - Egyptian law - International custom - Obligations - Summary courts - Compensation. Decision of 24/9/ Cairo Regional Center for International Commercial Arbitration
114	b/ Sultanate of Oman :   46 - Legal principles adopted by the Court, judicial year 1986-1987.*

N° 2

I- Lebanese Case Law and award:

Case law concerning Lebanese arbitral awards :

38 1- Court of Appeal of Beirut, 9th Section, dated 11/7/1996,

No 134/94,

- Award of Mr. Chafic AL-WAZZAN of April 20, 1994

(Jammal Trust Bank & Safa)

II- Case Law in Arab Countries :

Jordan

48 2- Supreme Court, No 874/86, of 8/3/1987.

49 3- Supreme Court, No 768/91, of 6/2/1992.

51 4- Supreme Court, No 47/91, of 28/8/1991.

Page

Syria

53 5- Supreme Court, First Civil Section, No 306/95 of 26/9/1995.

53 6- Tribunal of First Instance of Damascus, 6th Section, No 662/95 662/95 of 19/6/1995.

54 7- Supreme Court, General Assembly, No 9/95 of 6/2/1995.

55 8- Supreme Court, third Civil Section, No 661/95 of 30/5/1995.

56 9- Supreme Court, third Civil Section, No 2974/93 of 10/11/1993.

56 10- Supreme Court, third Civil Section, No 949/94 of 27/3/1994.

57 11- Supreme Court, third Civil Section, No 958/94 of 27/3/1994.

N° 4

- Comments on the ICC award in the case No 7418/95,
By Fady Ziadé. 

N° 7

I - Lebanese Case Law

A - Courts Decisions.

1 - Tribunal of 1st Degree of Beirut, 2nd section, Decision  n° 197/3 of
     27/12/1991.
2 -  Court of Appeal of Beirut, 9th section, Decision n° 766/93 of
       27/12/1993.
3 - Court of Appeal of Beirut, 9th section, Decision of 31/1/1994.
4 - Court of Appeal of Beirut, 9th section, Decision of 5/4/1994.
5 - Court of 1st Degree of Beirut, 1st section, Decision n° 535/94
     of 22/12/1994.
6 - Court of Appeal of Beirut, 1st section, Decision n° 1086/95, of
     23/11/1995.
7 - Court of Appeal of Beirut, 9th section, Decision of 22/1/1996.
8 - Court of Appeal of Beirut, 9th section, Decision of 11/4/1996.
9 - Court of Appeal of Beirut, 9th section, Decision n° 65/92 of 4/11/1996.
10 - Court of Appeal of Northern Lebanon, 2nd Section, Decision n° 222/96 of 2/5/1996.
11 - Court of Appeal of Beirut, 9th section, Decision of 20/5/1996.
12 - Court of Appeal of Beirut, 9th section, Decision n° 40/97 of 13/1/1997.
13 - Referee, Beirut Decision of 22/1/1997.
14 - Court of Appeal of Beirut, 1st section, Decision n° 192/97, of 18/2/1997.
15 - Court of Appeal of Beirut, 9th section, Decision of 10/3/1997.
16 - Supreme Court, 2nd section, Decision  n° 19/97 of 18/3/1997.
17 - Tribunal of 1st Degree, 4th Section, Decision  n° 117/97
      of 27/3/1997.
18 - Court of Appeal of Beirut, 9th section, Decision n° 613/97 of 29/5/1997.
19 - Tribunal of 1st Degree of Beirut, 4th Section, Decision n° 319/97 of 23/10/1997.
20 - Supreme Court, 1st Section, Decision n° 29/97, of 18/12/1997.
21 - Supremme Court, 1st Section, Decision  n° 9/98 of 22/1/1998.
22 - Supreme Court, 1st Section, Decision n° 10/98  of 27/1/1998.
23 - Court of Appeal of Beirut, Decision of  4/3/1998
       (of Tribunal of 1st Degree of Beirut, decision of  23/10/1997).

B - Lebanese Internal Arbitral Awards.

24 - OUEIDA (1997).
25 - GEDAY (27/7/1996).

II - Arab Case Law

A - Courts Decisions

- JORDAN
26 - Recourse n° 92/1992, Hearing of 14/2/1993.
27 - Recourse n° 19/1993, Hearing of 9/5/1993.

- UNITED ARAB EMIRATES
28 - Supreme Federal Court, Civil Section, Decision of  14/2/1995.
29 - Supreme Federal Court, Civil Section, Decision of 10/11/1991.

- TUNISIA
30 - Civil recourse of 17/3/1993.
31 - Civil cassation recourse of 17/31993.
32 - Civil cassation recourse of  10/11/1993.
33 - Court of Appeal,  14/6/1994.
34 - First Instance Tribunal,  27/1/1994.

- QATAR
35 - Appeal of 3/2/1997.

- EGYPTE
36 - Court of Appeal of Cairo, 62nd Section, commercial, Decision of  19/2/1997.

B -  ARBITRALE AWARDS

37-  Partial Arbitral Award n° 95/97 (Regional Cairo Center for International Commercial Arbitration).
 

N° 9

12 - The new "LCIA" Rules (1st January 1998).
 

THIRD SECTION: DECISIONS IN FRENCH LANGUAGE (COMMERCIAL AGENCY)
 

1- Arbitration - ICC - Exclusive distribution agreement in Lebanon. French Company - Lebanese law, law of the place of performance of the international contract. - Decree-law n°34/67 - Legality of arbitration - Mandatory rules - Public policy (no) - Effectiveness of the award - Arbitration clause - Text - Interpretation - Autonomy - power of the arbitrators. - Arbitrator - Internal public policy - Transnational rules. - Termination of an exclusive concession - Abuse - Motion - Legal cause - Damages - Elements - Evaluation.

ICC award - Case n° 8606/AC - Sole Arbitrator - Mr. Kamel BEN SALAH (Tunisia) - Paris, July 21, 1997 - Tradax S.A.L. (Lebanon) vs. Laboratories VALDOR S.A. (France).

N° 10

SECOND SECTION: CASES

A- LEBANESE COURT DECISIONS

60 - 1- Supreme Court, 1rst Section, N° 8/98 of 17/11/98

63 - 2- Supreme Court, 1rst Section, N° 104/98 of 10/12/98

65 - 3- Supreme Court, 4th Section, N° 6/98 of 19/3/98

65 - 4- Court of Appeal of Beirut, 1rst Section, of 2/2/99

71 - 5- Court of Appeal of Beirut, 12th Section, N° 1004/98 of 15/7/98

- 6- Court of Appeal of Beirut, 12th Section, N° 936/98 of 8/7/98

78 - 7- Chairman of the tribunal of 1rst instance of Beirut, 3rd Section, of 18/5/95

B- LEBANESE ARBITRATION AWARDS

79 - Ad hoc arbitration award reviewed in appeal by the Court of Appeal (hereabove N°1004/98) of 4/9/1997

87 - Ad hoc arbitration award, of the 19/6/1998

C- ARAB AND INTERNATIONAL DECISIONS: EGYPT

95 - Administrative Court, Section of Administrative Contracts and indemnifications of 10/5/98 97 - Tribunal of 1rst instance of South Cairo, First Civil Section, of 27/1/98

99 - Arbitration rules of Saudi Arabia, its decree of application, the decision of the Council of Ministers of 27/5/85 and the Royal Ordinance of 25/4/83

N° 11

LEBANESE COURT DECISIONS

17 1- Court of Appeal of Beirut, 1st section, Decision n° 1259 of 17/10/1968

19 2- Court of Appeal of Mount Lebanon, Decision n° 492 of 1/7/1970

20 3- Tribunal of 1st instance of Beirut, 5th section, n° 86 of 16/4/92

21 4- Tribunal of 1st instance of Beirut, n° 303/2588 of 22/12/93

24 5- Tribunal of 1st instance of Mount Lebanon, 3rd section, n° 123/95 of 12/10/95

35 6- Supreme Court, 4th section, n° 1/98 of 27/1/98

36 7- Tribunal of first instance of Mount Lebanon, 2nd section, n°88/98 of 13/2/98

37 8- Judge of Metn District n° 49/98 of 1/4/98

38 9- Tribunal of 1rst instance of Mount Lebanon, 3rd section, n° 204/98 of 10/7/98

39 10- Supreme Court, 5th section, n° 85/99 of 8/6/99

ARAB DECISIONS

JORDAN

41 1- Supreme Court, of 29/12/97

42 2- Supreme Court, of 30/12/97

43 3- Supreme Court, of 3/6/98

44 4- Supreme Court, of 7/6/98

45 5- Supreme Court, of 12/10/98

N° 12

Lebanese Law on leasing (December 1999).

N° 13

-1- Chairman of the Tribunal of First Instance of Tour, of January 27, 1994.

18-2- Tribunal of Frist Instance of Tunis, of October 8, 1994.

19 -3- Tribunal of First Instance of Tunis, of April 4, 1995.

25 -4- Supreme Court, of July 3, 1995.

30 -5- Court of Appeal of Tunis, of October 16, 1996.

32 -6- Court of Sppeal of Tunis, of November 20, 1996

34 -7- Court of Appeal of Tunis, of June 4, 1997.

39 -8- Court of Appeal of Tunis, of November 17,1997.

41 -9- Court of Appeal of Tunis, of January 27,1998.

46 -10-Court of Appeal of Tunis, of January 27,1998 (the same day than the previous decision ?

47 -11-Court of Appeal of Tunis, of February 10,1998.

57 -12-Court of Appeal of Tunis, of March 11,1998.

59 -13-Court of Appeal of Tunis, of March 17,1998.

61 -14-Court of Appeal of Tunis, of May 26,1998. 63 -15-Court of Appeal of Tunis, of January 12,1999.

65 -16-Court of Appeal of Tunis, of May 4,1999.

 

N° 14/15

II- COURT DECISIONS AND ARBITRATION AWARDS:

54         A- Arbitration awards

-         1- Lease Contract: Award of Mr. M. EL KAïSSI,

         of April 10, 1999.

55         - 2- Solidere: Award of Mr. N. TYAN, of September 30,1999.

69         -3- Leasing: Award of Mr. M. HARMOUCHE, of January 21, 2000.

 

78           -4- Contract – Inexecution : Award of Mr. S. AOUN, of February 21,      

       2000.

85         -5- Contract – Unilateral termination : Award Mr. R. MAALOUF, of     

       April 3, 2000.  

B- Court decisions

a- International Arbitration

95         -1- Court of Appeal of Beirut, Third Section, No 764/99, of June 3,   

       1999.

99         - 2- Court of Cassation, First Section, N°77/99 of June 17,1999.

b- Internal Arbitration

102     - 3- Court of Cassation, First Section, N°84/99, of June 22,1999.

109      -  4- Tribunal of First Instance of Beirut, Fifth Section, N°1425/99, of

          November 11, 1999.

110      -5- Tribunal of First Instance of Beirut, Civil Section, of December 9,

         1999.

110      -6- Court of Cassation, First Section, N°108/99, of December 10, 1999.

113      -7- Court of Appeal of Beirut, of December 17, 1999.

116    - 8- Court of Cassation, First Civil Section, N°112/99, of December

        21,1999.

117      -9- President of the Tribunal of First Instance, N°551/99, of December  

       27, 1999.

119      -10- Tribunal of First Instance of Mount Lebanon, Third Commercial

        Section, N°996/99, of December 29,1999.

122    -11- Court of Cassation, First Section, N°5/2000, of January 21,2000.

125      - 12- Court of Appeal of Beirut, Third Section, N°211/99, of March 2^nd,

           2000.

126      - 13- Court of Appeal of Beirut, Third Section, of May 4^th, 2000.

130      -14- President of the Tribunal of first instance of Beirut, of July 6, 2000.

N° 16

B. CASE LAW 

1. ARBITRATION AWARDS 

a. Lebanese Awards

--No. 1- Arbitrator and liquidator at the same time– amiable composition based on equity—extension of the term of the arbitration – limited partnership – expiration of the term of the company—liquidation—substitution of the liquidator for the manager personality of the company during its liquidation. Award of M.W. TABBARA, of 31 August 1999

(Merhej/Moujaess).

 --No. 2 and 3- Leasing – non-payment of amounts due – agricultural machines – their restitution – application of contractual provisions – damages and interest – rectification of the arbitration award – deadline of six months from the date of signature of the Terms of Reference.

Award of M.I . NAJJAR, of 26 April 2000, No. 6/99 (Lebanese Center of Arbitration) and the rectifying award completing it of 23 June 2000 (Lebanese  Leasing Company S.A.L./Ezzedine and Omar).

 --No. 4- Power of attorney – arbitration clause signed by the principal – a general power of attorney is sufficient – amiable composition – disregard for the text of the law – parties’ right to defense and to due hearing – contract – impossibility of execution – Syrian armed force occupying the building – nullity of contract – restitution of money with interest and in a foreign currency.  Award of the Arbitral Tribunal composed of M. Metri (President), Mrs. Nayla Obeid (dissenting) and M.A. Nasser, of 16 June 2000 (General Company for construction and investment S.A.L./KAIS).

 --No. 5—International arbitration in Lebanon – Arbitral award – execution abroad – New York Convention – American law of bankruptcy – force majeure – application of American law to a foreign company.  Award of the Arbitral Tribunal rendered in Beirut by the tribunal composed of Mr. Hammoud, Mr. Faresi and Mr. Makarem, 27 May 1999, Kuwait Airlines/Falcon Company).

                                                                                                                                               

b. Saudi Arabian Awards
--No. 1- Arbitration Award, 26/12/1995.
--No. 2- Arbitration Award, 31/12/1998.
--No. 3- Arbitraation Award, 27/7/1417 (a.h.).
--No. 4-Arbitration Award, 29/11/1419 (a.h.).
--No. 5- Arbitration Award, 19/8/1416 (a.h.). 
--No. 6-Arbitration Award, 29/11/1419 (a.h.). 

2. COURT DECISIONS

--No. 1- Arbitration – Arbitration clause – judge of urgent causes – right of retention – bilateral contract – competence of judge of urgent causes – competence after submission of the case to the arbitrators.

CA North, 4^th ch., no. 599/97, 29 December 1997 (Atlantic Oils and Mills/Arab International Oil Producing Company.

 --No. 2- Preliminary arbitration award– recourse against such award for expiration of the term of the arbitration – inadmissible – competence of the Court of Appeal (article 800, Code of Civil Procedure) – Nullity.

CA Beirut, No. 697/2000, of 15 June 2000 (Moujaess/Merhej).

 --No. 3- Aimable composition – expert  – right to defense – interruption of the term of the arbitration – mandatory mentions in the arbitration award – annulment request not serious – damages and interest.

CA Beirut, 3^rd ch., no. 864/2000, of 13 July 2000 (Ammar/Daaboul).

 --No. 4- Aimable composition – arbitration award – exequatur – annulment request equivalent to recourse against the judgment granting the exequatur– arbritration agreement – tacit agreement – drafting the award – due hearing principle  – prejudicial question ­­­-- action in forgery.

CA Beirut, 3^rd ch., No. 977/2000, of 7 September 2000 (Harake/Pharaon).

 --No. 5- Arbitration clause – arbitration in equity – reference to the code of civil procedure – validity of the clause (affirmative).

CA Beirut, 3^rd ch., of 19/10/2000 (Tabbah/Tabbah).

-6- International Arbitration – amiable composition – waiver of the right of appeal –

 recourse to annulment remains possible – international arbitration award rendered in Lebanon – recourse to annulment in Lebanon – exequatur not required – due hearing procedure – foreign law – not produced and not discussed – annulment of the arbitration award.

CA Beirut, 3^rd ch. no. 1135/2000, of 31 October 2000 (Kuwait Airlines/Falcon Company).

 

 

No17

B- LEBANESE DECISIONS

 

1- ARBITRATION AWARDS

 -  No. 1- Arbitration - Confirmation of acts passed by the representative - Signature of the compromise and annexes (yes).

Constuction code – Permit for occupation of the premises - Condition for sale or rent - Commitment of the lessor - Member of municipal council - Special conditions offering stronger guarantees than the law-Authorised.

Arbiration award given by the Arbitral Tribunal Composed of M. MITRI, A. YAZEGI and M. BAZ, 7/6/2000 (A.A. Company/A.T.A Company).

 - No. 2- Arbitration - Companies - Real estate project - Acquisition by foreigners  Arbitration in equity - Nationality of partners - Nominative shares - Necessity of this mention in the Statutes - Shareholder actions - Annulment of contract.

Arbitration award given by the arbitral tribunal composed of P. KHAIRALLAH, E. GASPARD and G. ADOUAN, 10/8/2000 (Syrian Catholic Patriarchate/Promotion and Enterprise Company).

                                                                                                                                    …/…

  2- COURT DECISIONS

 A- International Arbitration  

- No. 1- International Arbitration - Foreign Company - Competence - Court of the place of Signature of the arbitration compromise - Arbitration clause  - Designation of arbitrator - Degree and method of his designation - Exclusive method (no) - Lack of cooperation of one of the parties in the designation of the arbitrator - Intervention of the judge (yes).

Court of Appeal of Beirut, 3^rd Civ. Chamber, n° 232, 18/2/1999 (Sea Star Company/Azov Co.).

 - No. 2- International arbitration award - Rendered in a foreign country - Recourse in Lebanon (no) - Appeal against the decision of exequatur (yes) - Commercial representation - Trade protection in Lebanon - D-L n° 34/67 - Prohibition of recourse to arbitration - Violation of public order - Exequatur - Annulment.

Court of Appeal of Beirut, 3^rd Civ. Chamber, n° 1011, 5/10/2000 (Jean Sami Haddad and Associates company/Lesco Mobilkit company).

 

B- International Arbitration

 - No 1- Arbitration - Penal law controls the civil law in the state - Identity with the penal process - Not necessary - Appreciation - Public Order.

Court of Cassation, 2^nd Ch., 26/5/1986.

 - No. 2- Arbitrator - Arbitration clause - Method of designation of the arbitrator -  Cooperation of the judge - Examination of exceptions regardless of the merits - Not necessary.

Court of Cassation, 1^st Ch., n° 3, 26/5/1988 (Mallat/Moghabghab).

 - No. 3- Arbitration - Object - Plurality of demands in dispute - Divisibility - Recourse to cancellation of the arbitration award - Request on the merits in a subsequent stage  -Possibility - Arbitration awards on the aforesaid right - Causes of nullity.

Court of Appeal of Beirut, 3^rd Ch., n° 1010, 5/10/2000 (Harb/Mourad) 

- No. 4- Arbitration awards - Request for annulment - Causes of invalidity - Appeal (no) - Evaluation of compensation - Power of the arbitrator which motivates his award - Rights of defense - Definition.

Court of Appeal of Beirut, 3^rd Civ. Ch., n° 221, 16/11/2000, (Solidere Co./Lebanese Hotels Company).

 - No.5- Arbitration - Extension - Tacit extension - New extension - Incident appeal -First memorandum in response - Absence of extention.

Court of Appeal of Beirut, 3^rd Civ. Ch., n° 202/99, 16/11/2000 (Salha/El Aouar and others).

 - No. 6- Arbitration award - Annulment - Rights of the defense - Respect for imperative legal rules - Judged matter - End of litigation - Urgent and temporary measures  - Distortion of the parties’ demands - Denial of remedy.

Court of Appeal of Beirut, 3^rd Civ. Ch., n° 1313, 5/12/2000 (Obegi Co./Mawassem Taanayel Co.).

 - No. 7- Arbitration clause - Promise of sale contract - Transfer of right of option by the beneficiary - Its maintenance in the contract.

Court of Appeal of Beirut, 10^th Civ. Ch., 18/12/2000 (OFI Co./Development and Constuction Co. and Urban Construction Co.), followed by a commentary by Mr. Ibrahim NAJJAR.

   

- No. 8- Arbitration in equity - Statutes of the company - Acquisition by foreigners of property rights - Arbitration award - Public order - Annulment of the arbitration clause - Control of the judge.

Court of Appeal of Beirut, 3^rd Civ. Ch., n° 1417, 19/12/2000 (Promotion and Enterprise Company/Syrian Catholic Patriarchate).

  

- No. 9- Arbitration award - Appeal consisting of demand for cancellation  -Requalification by the judge - Violation of law - Causes of cancellation of sentence  -Leasing.

Court of Appeal of Beirut, 3^rd, civ. Ch., n° 1439, 21/12/2000 (Ezzedine/Lebanese Leasing Co.).

  

- No. 10- Arbitrational award - Motivation system - Confusion of grounds and system  -Possibility of execution - Indifference in the site of the system - Confirmation of the award.

Court of Appeal of Beirut, 3^rd civ. ch., no. 269, 15/2/2001 (Khoury and others/Kataeb Party).

  2- ARAB ARBITRATION DECISIONS:  

LEBANON

 EGYPT

  a- International Arbitration

   - No. 1- International arbitration - Agreement on the application of a determined law  -Law linked to the litigation - Respect for the litigated conditions of contract and customers - Administrative contract - Definition - Functioning of a public service   -Exorbitant clauses of common law.

Court of Appeal of Cairo, 7^th Commercial Section, 7/9/1999 (Public Transport Service/Italorc Co.).

  b- Internal Arbitration

 - No. 2- Arbitration Award - Recourse to cancellation - Causes of cancellation  -Evaluation of compensation without sentence - Ultra petita – Cancellation  -Incompetence of the court to examine the demand for compensation.

Court of Appeal of Cairo, 7^th Commercial Section, n° 1560, 31/12/1998 (Misr Assurance Co./Nephtis Commercial Co.).

  - No. 3- Arbitration award - Defect in motivation - Absence of agreement of the parties - Cancellation.

Court of Appeal of Cairo, 8^th Commercial Section, 23/3/2000 (Medical Bottle Co./H. Farm Co.)

  - No. 4- Arbitration award - Recourse in cancellation - Law of the date of its pronouncement.

Court of Appeal of Cairo, 62^nd Commercial Section, 5/7/1999 (Egyptian Chamber of Commerce of Port Said/Saadallah and Azmi).

 - No. 5- Arbitration - Public order - Order of execution.

Court of Appeal of Cairo, 63^rd Commercial Section, 24/6/1999 (Fiberwing Co./Arab Brothers Industrial and Agricultural Company).

  - No. 6- Arbitration - Designation - Associate or representative of a party - Possibility  - Quality of the arbitrator is limited to the President of the arbitral tribunal.

Court of Appeal of Cairo, 7^th Commercial Section, 7/9/1999 (Kargil Co./General Petroleum Co. and Cairo Regional Center of International commercial Arbitration).

- No. 7- Arbitration - Arbitration agreement - Failure to mention the problems and disputes concerned - Nullity.

Court of Appeal of Cairo, 7^th Commercial Section, 7/9/1999 (Ghorayeb/Rizk).

 

N° 18

B. COURT DECISIONS

           

            1. LEBANON

            No. 1— Arbitrator - Behavior - Impartiality and objectivity - Liquidator of a company - Agent’s obligations - Accountiong - Difference with the arbitrator -  Combination of the qualities of arbitrator and agent in one person (no).

             Court of Appeal of Beirut, 1^st ch., no. 1135, 12/10/1999.

            No. 2— Arbitration - Arbitrator - Designation - Judge making provisional rulings (no) - Public policy.

            Court of Appeal of Mount Lebanon, 4^th ch., no. 138, 9/2/2001.

             No. 3—Arbitration - Points in dispute – Conclusions of the parties – Motivation for the sentence – Not detailed (possible) – Arbitrator – Powers – Assessment of the facts – Requalification of the contractual relationship – Development of the arbitration – Date of hearings – Verbal process – Official document.

            Court of Appeal of Beirut, 3^rd ch., 22/3/2001 (Lebanese-Arab Hotel Co./Hecate Co.). 

            No. 4—Arbitrator – Request for recusal – Extension (5 days) – Institutional Arbitration – Lebanese Center for Arbitration –            Reference to its rules – Its Adoption – Tacit withdrawal of appeal.

            Court of Appeal of Beirut, 3^rd ch., no. 541, 29/3/2001 (Abou Nader/Lebanese Leasing Co. S.A.L.).

             No. 5—Arbitration award – Recourse – Requalification – Demand for repeal – Arbitration in equity – Not express – Recourse to equity by the arbitrator – Exceeding the mission entrusted to him – Repeal.

Court of Appeal of Beirut, 3^rd ch., 26/4/2001 (Al Wahab/Abou Nassar).

             No. 6—Arbitration – Provisional measures – Consulted (yes) – Commercial representation – Stock – Illegal holding – Anonymous company – Demand for intervention – Urgency – Majority.

            Consultation judge of Baabda, 27/4/2001 (Boustany/Gemaco Co. S.A.L.).

             No. 7__Arbitration Award – Demand for annulment – Defect in mention of the place of pronouncement – Motivation – Arbitration in equity – No annulment – Referred provision – Provisional execution – Motivation (not necessary).

            Court of Appeal of Beirut, 3^rd ch., no. 776, 3/5/2001 (Tourism Development Co./Assi).

            No. 8__ International arbitration - Arbitration award rendered in Syria - Lebanese - Syrian judicial agreement - Two exequatur in Syria and in Lebanon  -Demand for annulment in Lebanon (no) - Appeal in Lebanon (no) - Refusal of exequatur  Recourse (yes).

            Court of appeal of Beirut; 28/5/2001 (Senjab Trade Corporation / Senjab).

            2.  JORDAN

            No. 1 – 34: Decisions of the Jordanian High Court in arbitration matters.

             3. TUNIS

            -Decision of the Court of Appeal of Tunis, n° 64474, 3/10/2000, note by M.

Ahmad Al WOURFALI.

 

N° 19

B- ARBITRAL JURISPRUDENCE 

- Lebanese Judicial Decisions 

- N° 1- B.O.T. – Administrative contract – Ban of compromise clause – International arbitration – Incompetence of the arbitral tribunal – Concession to competitive character – Public policy – Ban on arbitration and bilateral (international) convention – Limitation of the domain of public policy by the State.

State Council, decision on appeal no 9573/2000, of 17 July 2001 (Lebanese State / F.T.M.L.) 

- N° 2- B.O.T. and arbitration – Compromise clause – Administrative contract – immediate application of legal texts unless impossible – Competence of administrative courts.

State Council, decision on appeal n°  9536/2000, of 17 July 2001 (Lebanese State / Libancell) following the report of M. Youssef NASR.

 Jordan 

The major principles of jurisprudence of the Court of Cassation in the matter of Jordanian arbitration between 1999 and 2001.  

N° 20

B- ARBITRATION AWARDS 

- N° 1- Arbitration - Leasing - Appointment of the arbitrator - Legal entity  -Acceptance of the arbitrators by the parties - Penalty clause - Compensation due to breach of contract - Previous determination - Reduction.

Award of the Arbitrator Mr. Raymond HARFOUCHE (Lebanese Arbitration Center) of December 13, 2000 (Lebanese Leasing Company S.A.L. / Labada)

 - N° 2- Arbitration - Legal Characterization - Not restricted to the description of the parties - Enforcement fine - Reduction (yes) - Penalty clause - Reduction (yes) - Joining of two compensations based on different damages.

Award of the Arbitrator, former Chairman of the Bar Mr. Samir ABILLAMAH (Lebanese Arbitration Center) of June 6, 2001 (Lebanese Leasing Company S.A.L. / Hobeiche).

 - N° 3- Arbitration - Leasing - Force majeure (No) - Impossibility of execution  -Penalty clause - Contractual damages - Enforcement fine - Reduction - Partial performance.

Award of the Arbitrator Mr. Fadi GEBRANE (Lebanese Arbitration Center) of June 19, 2001 (Lebanese Leasing Conpany S.A.L. / Atallah).

 C- LEBANESE COURT DECISIONS

 - N° 1- Contractual Arbitration - Substance of the dispute - Binding the arbitrator - Limits of the arbitrator’s powers - Renunciation to the arbitration procedure - Arbitration award - Inexistence - Lack of fundamental characteristics - Exequatur - Rejection.

Court of Appeal of Beirut, 3rd Section, Decision n° 686/2000 of June 8, 2000 (Fayad / Dennaoui).

 - N° 2- International arbitration - Definition - International State contract  -Criterion - Transfer of values over borders - Payment order issued by the competent administration - Existence of an arbitration clause - Opposition to the payment order - The arbitration clause does not stop enforcement.

Court of Appeal of Beirut, 10th Section, Decision n° 192/2000, of March 2nd, 2001 (Lebanese State / Bank of Lebanon).

 - N° 3- Arbitration award - Recourse to the Supreme Court - Formal conditions required for its admission - Certified copy of the decision of appeal - Payment of the duties of the decision of appeal.

Supreme Court, 1st civil section, Decision n° 68/2001, of June 13, 2001 (Geday / Commission for Liquidation of Banks and National Institute of Deposits Guarantee).

 - N° 4- Arbitration clause - Joint-stock Company - Matters suitable for arbitration - Non violation of public policy - Shareholders General Meeting  -Agenda of the meeting - Decisions concerning matters not included in the agenda - Relative nullity - Decision relating directly to the person requesting the nullity.

Tribunal of First Instance of Mount Lebanon, 2nd Section, Decision n° 25/2001 of June 25, 2001 (Boustany / Gemaco S.A.L.).

 - N° 5- Arbitration - Institutional Domestic Arbitration - Exequatur - Recourse decision (No) - Jurisdiction - President of the Tribunal of First Instance  -Exequatur decision - Annulment procedure - Appeal - Mandatory territorial jurisdiction - Pleading it in all levels of litigation.

Court of Appeal of Beirut, 3rd Section, Decision n° 1277/2001 of July 12, 2001 (Najarian / Najarian).

- N° 6- Arbitration - Challenge of the arbitrator - Analogy with the challenge of the judge - Special procedure for arbitration - Challenge of the arbitrator  -Reasons - Potential bias - Contradiction among two experts reports - Partiality (No).

Court of Appeal of Beirut, 3rd Section, Decision n° 1443 of October 11, 2001 (Aad / The arbitrator Mr. Ibrahim Traboulsi and other parties).

- N° 7- Arbitration - Duration - Six months period - Beginning of the period  -Extension - Procedure - Expressly - Implicitly - Power of the parties and of the arbitrator in the extension.

Court of Appeal of Beirut, 3rd Section, Decision n° 1444 of October 11, 2001 (Boustany / Dahdah).

D- TUNISIAN DECISIONS RELATING TO ARBITRATION

- N° 1- Decision of the Supreme Court (Civil Section), n° 54672 of June 11, 1998 (Maniklem Company / Russel company).

- N° 2- Decision of the Court of Appeal (Civil Section), n° 39 of June 15, 1996 (Al Mahdia / Al Moutawassitiya Company).

- N° 3- Decision of the Court of Appeal (Civil Section). n° 61133 and n° 61134 of October 9, 1999 (Hadia Company / Jat Company).  

N° 21

 

B- CASE LAW: 

Decisions of Lebanese Courts: 

- N° 1- Domestic arbitation - Arbitration clause - Conservation measures - Urgent admission - Extreme urgency - Sequestration - Conditions - No urgency - Missions of the sequestrators - Commercial company - Liquidation  -Sequestration (No) - Independent lawsuit.

Baabda Civil Judge of Urgent Causes, Decision of April 27, 2001 (Boustany/Gemaco).

  - N° 2- International arbitration - New York Convention - Lebanese arbitration law - Principles more favorable to the validity of the arbitration award  -International public policy - Violation at the level of the grounds of the judgment and not of its results (No) - Applying the Estoppel rule - Invoking the matter of the invalidity of the arbitration clause for the first time in front of the judge of annulment - Rejection.