Latest updates
Arbitration in Lebanon: overview
Obeid Law Firm- Arbitration & ADR
- Lebanon
- 01 October 2020
Lebanon has been experiencing an ongoing severe financial, economic and social crisis, which has been further exasperated by the COVID-19 pandemic and the Beirut Port explosion. This situation may give rise to arbitration claims which are subject to Lebanese law or seated in Beirut. As such, this article provides a brief overview of the legislative framework for arbitration in Lebanon.
Landmark decisions in banking sector amid ongoing COVID-19 and economic crisis
Obeid Law Firm- Litigation
- Lebanon
- 14 July 2020
Despite the lockdown and its impact on court activities, decisions have been handed down by judges of summary proceedings in an attempt to restore the rule of law in response to the de facto capital controls imposed by local banks. This article provides an overview of the judicial measures adopted in response to the COVID-19 pandemic and an overview of court decisions rendered against local banks.
Employer-employee relationships amid COVID-19 pandemic
Obeid Law Firm- Employment & Immigration
- Lebanon
- 03 June 2020
The government has adopted exceptional measures to manage the spread of COVID-19. These measures have had an unprecedented impact on employers and employees, which have been adjusting to the rapidly changing situation triggered by the pandemic and the national economic crisis. Faced with the intensifying economic impact of both crises, business owners have been forced to introduce adequate changes to the way in which they work.
COVID-19: impact on contractual obligations
Obeid Law Firm- Corporate & Commercial
- Lebanon
- 01 June 2020
The COVID-19 pandemic has highlighted the importance of using force majeure to repudiate the performance of burdensome contractual obligations that were undertaken before the pandemic. This article discusses Lebanon's approach with regard to the COVID-19 outbreak and its potential characterisation as a force majeure event by discussing recent developments and the general framework for force majeure under Lebanese law.
Public-private partnerships
Obeid Law Firm- Projects, Construction & Infrastructure
- Lebanon
- 25 February 2020
In 2017 Parliament passed Law 48 Regulating Public-Private Partnerships (PPPs). The law aims to attract foreign direct investment and bring specific expertise to Lebanon. Further, it institutes a legal framework that is, to a certain extent, in line with international standards and presents no particular red flags. This article analyses the new legal framework for PPPs in Lebanon, the relevant authorities and the law's advantages and limitations and showcases PPP projects which are currently underway.
Only Lebanese courts can settle disputes between foreign companies and Lebanese exclusive representatives
- Litigation
- Lebanon
- 24 September 2019
The Beirut Supreme Court has ruled that arbitration clauses in exclusive distribution agreements signed with Lebanese representatives are invalid. Thus, only Lebanese courts have jurisdiction to settle disputes between the parties to such agreements. By adopting this approach, the Beirut Supreme Court has enforced the traditional position which grants Lebanese exclusive distributors a high level of protection.
Council of Ministers launches second offshore licensing round
- Energy & Natural Resources
- Lebanon
- 10 June 2019
The Council of Ministers recently launched the second offshore licensing round for oil and gas exploration in numerous blocks. It also approved the updated tender protocol and approved updates to some articles of the model exploration and production agreement. The Lebanese Petroleum Administration has invited interested companies to combine their bidding efforts by forming consortiums. This article examines the pre-qualification process and reviews how bids will be assessed up until the award stage.
Appeal court rules on shareholders' right to file claims against companies, chairs and directors
- Litigation
- Lebanon
- 28 May 2019
In a notable decision, the Beirut Appeal Court highlighted the requirements that shareholders must meet in order to submit claims against their company or its chair or directors. In its decision, the court held that while shareholders' personal rights are protected by their ability to challenge their company's management through an individual or company action, their claims should be restricted to damage which they have personally suffered and limited to their participation in the company.
New transparency law in oil and gas sector aims to fight corruption
- Energy & Natural Resources
- Lebanon
- 18 February 2019
Preventing corruption is a key challenge faced by the oil and gas sector worldwide. This is particularly true in developing countries, as the high level of financial resources generated by recent discoveries can create a breeding ground for corruption and abuse. Lebanon recently took a major step towards achieving transparency and accountability in this regard when it adopted Law 84 on Transparency in the Oil and Gas Sector.
Beirut Supreme Court confirms that trademark ownership is acquired through use, not registration
- Litigation
- Lebanon
- 12 February 2019
In a drawn-out dispute between the Kataeb Political Party and The Modern Media Company (MMC), the Beirut Supreme Court has confirmed that ownership of a trademark or trade name is acquired through use and not through registration with the relevant authorities. However, the MMC believes that the court made a serious error in its decision and has thus appealed to the country's highest court.
An alternative solution: judicial mediation
Obeid Law Firm- Arbitration & ADR
- Lebanon
- 10 January 2019
In line with Lebanon's pro-alternative dispute resolution attitude, a further option in the form of judicial mediation was recently made available to parties through the implementation of Law 82. Judicial mediation offers an alternative mechanism for settling disputes in an efficient, fair, timely and confidential manner and should help to lessen the increasingly overwhelming workload faced by judges.
Arbitration in commercial representation disputes: walking the line between tradition and modernism
Obeid Law Firm- Arbitration & ADR
- Lebanon
- 19 July 2018
Due to its status as a commercial hub, Lebanon has its fair share of disputes arising from commercial representation agreements, particularly those concerning compensation for the termination of such agreements. However, while recourse to the court system is well established as the traditional method of settling this type of dispute, significant controversy remains regarding their submission to arbitration.
Resolving energy disputes under model exploration and production agreement
- Energy & Natural Resources
- Lebanon
- 20 November 2017
Disputes are a significant risk in any energy project. As such, the Cabinet recently issued a model exploration and production agreement for petroleum activities. However, production-sharing contracts such as the agreement have frequently been the subject of international commercial and state investment disputes. It is therefore questionable whether the dispute resolution mechanism provided in the agreement allows for the efficient management of any potential disputes that may arise.
Government commences oil and gas exploration licensing round
- Energy & Natural Resources
- Lebanon
- 06 February 2017
The new government recently approved two draft application decrees which are part of the final package of legislation necessary to resume the long-awaited tendering process for oil and gas exploration and production in Lebanon. The tendering process commenced in 2012 with a call for interested companies to pre-qualify. Although the first tendering round was launched in April and May 2013, the process came to a halt pending the approval of the draft decrees.
Lebanon to establish national oil company?
- Energy & Natural Resources
- Lebanon
- 10 October 2016
There has been an ongoing debate in Lebanon recently over whether it should establish a national oil company (NOC). While some emerging countries have benefited from NOCs, in other countries they have been the victims of corruption. As such, before establishing an NOC, Lebanon should thoroughly study the benefits of its establishment, as well as its role and allocated budget.
OW Bunker's bankruptcy: will you have to pay your bunker debts twice?
- Shipping & Transport
- Lebanon
- 13 July 2016
OW Bunker's restructuring triggered a number of cases involving shipowners or operators that contracted with OW, but were physically supplied bunkers by a third party. Recent Lebanese case law has put pressure on shipowners, as the maritime lien principle gives creditors the right to arrest a ship even if the shipowner is not the debtor. This puts shipowners in the untenable position of having two different parties demand payment for the same debt.
Can a court adjust your liquidated damages assessment?
- Corporate & Commercial
- Lebanon
- 27 June 2016
Whether parties in a contractual dispute can apply for a liquidated damages adjustment to reflect actual damages is a hot topic. If the contract does not stipulate a pre-designated liquidated damages amount, courts can increase or decrease the amount of damages being sought. However, the inclusion of such a pre-designated amount acts as an upper limit and limits the courts' power to lowering the amount of damages recoverable by the claimant.
Model exploration and production agreement: dispute resolution in the face of divergent interests
Obeid Law Firm- Arbitration & ADR
- Lebanon
- 16 June 2016
In 2013 Lebanon commenced and concluded the initial pre-qualification licensing round for offshore oil and gas exploration, which was based on a draft model exploration and production agreement (EPA). This update focuses on the dispute resolution mechanism provided in the draft model EPA and the issues that may arise in the face of divergent interests of the parties involved.
Recent Mediterranean discoveries revive interest in exploration
- Energy & Natural Resources
- Lebanon
- 08 February 2016
Recent discoveries in the eastern Mediterranean Sea may constitute the world's largest natural gas find. The Lebanese government has accordingly committed to resuming oil and gas exploration as soon as possible, by ratifying two decrees concerning the delineation of blocks to be opened for bidding and the model exploration and production agreement.
Containerisation and cargo claims in Lebanon
- Shipping & Transport
- Lebanon
- 23 December 2015
In September 2015 47% more containers were shipped through the Port of Beirut than in the same month in 2014. Since much seaborne trade is containerised, there has been a notable increase in containerised cargo claims in recent years. Carriers are in most instances well prepared to defend these claims and limit their liability according to the various applicable laws and regulations.
