Enforcement of Arbitral Awards in Lebanon

Arbitration is a method to settle disputes other than the state courts system; it is one of what is known as alternative dispute resolution (ADR) methods. 

Arbitration is defined as “a dispute resolution process agreed between parties in which the dispute is submitted to one or more arbitrators who issue an award”. In this regard arbitral proceeding as well as the authority of the arbitrator(s) are based on the consent of the parties. Arbitrators are considered as private judges who derive their authority from the agreement of the parties. Unlike court judges who derive their authority from the state. For that the arbitral award – unlike the court judgment- lacks an enforcement force by its own.

In our study we discuss how to enforce an arbitral award according to the Lebanese Civil Procedures code.

1. The Competent Authority to give the Execution Order: 

According to articles (770,793, 795) of LCCP the competent authority is the court of first instance of the place of the seat of arbitration otherwise the first instance in Beirut, unless the dispute is in an administrative matter the competent authority to give the execution order is the President of the State Consultancy Counsel.

2. The Execution Order Application:

According to the article 793 of LCCP, The execution order application of an internal arbitral award must contain the following documents: 

1. The Original arbitral award
2. A copy of the arbitral agreement certified by the arbitrators, or the competent official authority, or the clerk of the court.

Regarding international arbitral awards, the article 814 of the LCCP stipulates that the application requiring the enforcement order must prove:

1. The existence of the arbitral award
2. The award doesn’t violate the international public policy

The existence of the arbitral award is proved by presenting the original arbitral award and a copy of the arbitral agreement certified by the arbitrators and the competent official authority. Noting that if these documents are in foreign language they must be translated by a sworn translator.

3. The recourse against the decision granting the execution order:

In this regard LCCP differentiates between: 1- the domestic arbitral award and the international arbitral award rendered in Lebanon 2- the foreign arbitral award. 

Regarding the domestic arbitral award and the international arbitral award rendered in Lebanon, articles 805 and 819 state that the decision granting the execution order is not subject to any recourse. However, the decision that refuses to grand the execution order to these two types of arbitral award is subject to appeal within 30 days from the date of notification. 

In the case of foreign arbitral awards, the situation is different. According to articles 816 and 817 of LCCP the decision granting or denying the execution order are both subject to appeal within 30 days from the date of notification.

Article 817 indicated the reasons for appeal:

1. The arbitral award is issued without an arbitration agreement or issued based on a void or expired agreement.
2. The arbitral award was issued by arbitrators appointed in a way that violates the provision of the law.
3. The award was issued by arbitrators that exceeded their mission.
4. The award was issued without respecting the right of defense of the parties.
5. The arbitral award violated a rule related to international public policy.

  References:

1. ACERIS LAW LLC, Definition of Arbitration, https://www.international-arbitration-attorney.com/definition-of-arbitration/
2. Lebanese Code of Civil Procedures, no 90 issued in 16\9\1983.