Lebanon has a civil law legal system, so follows the inquisitorial model. The legal process is conducted primarily through written submissions.

As Lebanon is a unitary state, it does not have a system of federal courts. The judiciary in Lebanon is divided into two primary branches:

• Judicial Courts, which operate across three levels and handle both criminal and civil matters; and
• Administrative Courts, which deal with disputes related to administrative matters. The State Council (Conseil d’État) is currently the sole judicial authority overseeing administrative disputes, as lower-level administrative courts have yet to be established.

There are also special courts with subject matter jurisdiction, such as the military and the religious courts (dealing with matters related to personal status).

Civil Court Chambers

The civil courts are responsible for adjudicating civil disputes. They are divided into chambers, depending on the nature of the dispute, as follows.

• The Commercial Chamber, which handles commercial and financial disputes related to business and trade.
• The Financial Chamber, which oversees disputes related to financial claims.
• The Real Estate Chamber, which adjudicates property and real estate matters.
• The Personal Status Chamber, which deals with issues related to nationality, inheritance, civil marriage and similar matters.

In addition to the above, there are special chambers for lease disputes, labour law issues and bankruptcy cases. Civil courts also include single-judge chambers for summary proceedings and an Enforcement Bureau, which manages enforcement procedures.

Structure of the Civil Courts

The civil courts are divided as follows.

• Courts of first instance, either presided over by a single judge or a panel of three judges, depending on the complexity and value of the case. A sole judge typically handles specific matters, such as lease disputes or claims of lesser value, while more complex cases are heard by a panel.
1. The timeframe of the proceedings is affected by various factors such as subject matter and complexity (eg, the need to appoint an expert), as well as other factors which may or may not be within the parties’ control. Generally, the time between commencing proceedings and getting to trial ranges between two and six months in normal circumstances and if notification is not delayed. However, in recent years, the time to reach trial has often been prolonged due to the ongoing situation in Lebanon, with factors such as strikes and other disruptions contributing to the delays.
• Courts of appeal, which are based in the administrative centre of each district (Mouhafazat) serve as second-instance courts that review the decisions of the courts of first instance.
• The Court of Cassation, located exclusively in Beirut, functions as Lebanon’s highest judicial authority. It reviews legal points of law rather than questions of fact and serves as the ultimate judicial recourse.

Constitutional Council

The Constitutional Council is a key component of Lebanon’s judiciary. Its role is to oversee the constitutionality of laws and to resolve disputes arising from parliamentary and presidential elections.

Military Court

Lebanon’s military courts operate under the jurisdiction of the Ministry of Defence and have an exceptional status within the judiciary. These courts handle offences related to military personnel, and their jurisdiction extends to civilians in cases involving crimes such as espionage, treason, unauthorised contact with the enemy, and conflicts between civilians and military or security forces.

Civil Court Proceedings

In civil and commercial matters, court proceedings are subject to the provisions of the Lebanese Code of Civil Procedure (LCCP), issued by Legislative Decree No 90/83 and its subsequent amendments.

Civil court proceedings are public and the parties are not anonymised in judgments. Pursuant to Article 484 of the LCCP, civil hearings are public unless the court decides on its own volition, or upon the request of any of the parties, to keep a hearing private in order to preserve public policy or for family privacy; however, the judgments will still be publicly announced.

TV cameras and photographers are not permitted in court.

In principle, legal representatives should be a Lebanese national, and qualified in Lebanon in order to appear before the Lebanese courts. A Lebanese lawyer is required to hold a power of attorney from their client in order to represent them before the courts of law – ie, the courts of first instance, the courts of appeal and the courts of cassation. In certain instances, a special power of attorney is necessary, such as for waiving claims, settling disputes, arbitrating, waiving any means of appeal, or lifting a seizure.

However, for cases where the value does not exceed LBP50 million, the appointment may be made before the court of first instance through a power of attorney organised by the Mukhtaror by a statement from the client recorded in the trial session minutes (Article 379 of the LCCP as amended).

Pursuant to Article 115 of the Law No 8/70, dated 11 March 1970 (Lebanese Legal Profession Act), foreign lawyers may, in specific cases, plead before the Lebanese courts, provided they obtain special authorisation from the President of the Bar. Such authorisation is issued on a case-by-case basis.

The LCCP outlines the circumstances in which legal representation by a lawyer is mandatory:

• Article 378 of the LCCP (as amended) states that parties must be represented by a lawyer in cases where the value of the claim exceeds LBP50 million or in cases of unspecified value; and
• Article 846 of the LCCP (as amended) provides that in enforcement proceedings, parties must be represented by a lawyer where the value of the claim exceeds LBP50 million. The same applies to parties objecting to enforcement, pursuant to Article 855 of the LCCP.

Specific considerations:

• The appointment of a legal representative is not required before the Labour Arbitral Council, addressing labour disputes.
• In addition, trainee lawyers are not entitled to attend hearings before the courts of appeal and cassation, except in specific matters (eg, before the court of appeal on behalf of the defendants in misdemeanours).

The law does not address this issue. To the best of the knowledge of the authors, there have been no lawsuits in Lebanon officially involving third-party funders.

To the best of the knowledge of the authors, there have been no lawsuits in Lebanon involving third-party litigation funders.

Not applicable.

Not applicable.

Not applicable.

Contingency fees are permitted under Lebanese law.

The Lebanese Legal Profession Act provides that legal fees are determined by an agreement concluded between the lawyer and the client. This Act does not provide an indication nor a restriction on the nature of the agreement, which remains subject to the parties’ contractual free will. However, the Lebanese Legal Profession Act grants the court the right to reduce the fees in civil cases if they exceed 20% of the value of the contended matter.

Not applicable.

The court does not impose any rules on the parties in relation to pre-action conduct, per se. However, a notice is usually sent to the defaulting party to remedy the breach before initiating proceedings. The notice in some instances is mandatory and usually provides a time limit for the defendant to reply and remedy the breach before the plaintiff can commence judicial proceedings.

It should be noted that, in civil matters, the creditor may be exempted from sending such notice – ie, when the performance of the obligation becomes impossible, or when the obligation was to return an item/asset that was stolen, or when the term of the obligation has lapsed (Article 258 of the Code of Obligations and Contracts (COC)).

Generally, the statute of limitation in civil matters is ten years (Article 349 of the COC). However, statutes of limitations of shorter duration apply in some specific types of disputes (Article 350–352 of the COC).

The statute of limitation runs from the maturity date of the obligation.

Articles 354 to 359 of the COC outline the circumstances in which the statute of limitations can be either suspended or interrupted. For completeness, suspension pauses the running of the statute of limitation without resetting the elapsed time. In contrast, interruption not only halts the statute of limitation but also resets the elapsed time, starting a new period from the point of interruption.

According to Article 72 of the LCCP, jurisdiction is sorted into four primary types.

• International jurisdiction (Articles 74-80 of the LCCP) – determines which country’s courts have the authority to adjudicate a legal matter. This jurisdiction is established by considering factors such as the nationalities of the parties involved or the location of the disputed interests.
• Functional jurisdiction (Articles 81-82 of the LCCP) – assigns cases to judicial bodies determining the competent court to be either civil, administrative or religious.
• Subject-matter jurisdiction, or ratione materiae jurisdiction (Articles 83-95 of the LCCP) – determines the competent court based on the nature of the dispute. This jurisdiction establishes not only the appropriate level of court – whether first instance, appellate, or the Court of Cassation – but also, in certain cases specified by law, the specialised courts designated to handle specific types of disputes. These specialised courts may address matters such as summary proceedings, labour arbitration, and other specific disputes.
• Territorial jurisdiction (Articles 96-113 of the LCCP) – focuses on the allocation of cases among courts of the same type and level, identifying which specific court is competent to hear a dispute based on the geographic location of the subject matter or the parties involved. Territorial jurisdiction can be either ordinary, which is relative and allows flexibility in determining the competent court, or exceptional, in which case it is becomes mandatory.

Typically, the competent court is determined by the defendant’s domicile, as specified in Article 97 of the LCCP. However, territorial jurisdiction may vary based on the nature of the dispute, as outlined in the subsequent provisions of the LCCP.

• Real estate disputes – the competent court is located where the property is situated (Article 98).
• Civil or commercial contracts – jurisdiction is granted to the court where:
1. the effective domicile of the defendant is located;
2. the defendant has chosen a domicile;
3. the contract was concluded, and one of its principal obligations was to be performed; or
4. the contract was entirely performed (Article 100).
• Legal entities – for disputes involving legal entities, the competent court is where the legal entity’s head office is located. If a branch of the legal entity is involved, the court where the branch is located has jurisdiction (Article 101).
• Torts or quasi-torts – jurisdiction is granted to the court of the defendant’s domicile or the court within whose jurisdiction the harmful act or damage occurred (Article 102).

Specific jurisdictional criteria in the LCCP is as follows. 

Mandatory territorial jurisdiction as provided in the LCCP includes:

• bankruptcy – claims arising from bankruptcy issues fall under the competence of the court that declared the bankruptcy (Article 108);
• life insurance – claims related to life insurance are under the jurisdiction of the court where the insured party resides (Article 109);
• accident insurance – claims related to accident insurance fall under the jurisdiction of the court where the accident occurred or where the insured party resides (Article 110);
• fire insurance – claims related to fire insurance are handled by the court where the fire incident occurred (Article 111); and
• special courts – claims that the law explicitly requires to be filed before a specific court must be filed exclusively in that court (Article 112 of the LCCP).

In criminal matters, the action must be filed before the court where the crime occurred, where the defendant resides, or where the defendant was arrested in accordance with Article 9 of the Lebanese Criminal Procedure Code.

Proceedings in civil and commercial matters are initiated by filing a submission with the clerk of the relevant court.

The plaintiff must have the legal standing (locus standi) to file the claim (Article 9 of the LCCP) and the initial complaint must be filed before the competent court.

The initial complaint should include the following information (Article 445 of the LCCP):

• the name of the court before which the complaint is filed;
• the names, professions and residences of the plaintiff and defendant, along with the names of their representatives, if any. For legal entities, the form, name, address, place of business, authorised signatory(ies), and attorney should be provided;
• the facts, legal grounds, evidence and relief sought;
• the date of the complaint; 
• the plaintiff’s signature or the signature of its legal representative. A copy of the power of attorney must be attached; and
• the exhibits enclosed with the complaint.

Pursuant to Article 365 of the LCCP, the subject matter of the dispute is set out in the parties’ requests for relief as outlined in the initial and subsequent submissions.

The plaintiff may file incidental requests to correct, complete, or amend the initial complaint pursuant to Article 31 of the LCCP. In the same context, Article 32 of the LCCP grants the defendant the right to file incidental claims, such as set-off requests or claims for damages incurred as a result of the trial.

In this respect, it is important to note that the above-mentioned incidental claims should satisfy the requirements of Article 30 of the LCCP. Specifically, incidental claims must correlate with the initial claims set out in the initial complaint, fall within the jurisdiction of the court handling the initial complaint, and not be subject to the jurisdiction of an arbitral tribunal.

Rules of service are provided for under Articles 397 and seq. of the LCCP.

Typically, notifications are served by the bailiff, via the police, the interior security forces or a court clerk.

If a party is domiciled abroad, Article 413 of the LCCP requires that notification be made via a registered letter with acknowledgement of receipt. Notification may also be made through the Lebanese embassy or consulate located in the country where notification is sought, or in accordance with the latter’s local law.

According to Article 468 of the LCCP, if the defendant fails to appear before the court at the first hearing without providing a reasonable excuse, and they were personally duly notified or submitted a defence, the court may render a judgment on the merits of the case in presentia. The court, however, shall only grant the plaintiff’s claim if it finds it legally valid in form, admissible, and based on a valid legal foundation.

The same article provides that if the defendant was not duly notified and did not submit a defence, the court may, in non-urgent cases, either on its own initiative or at the plaintiff's request, postpone the case to a subsequent hearing, ensuring that the defendant is notified of the new date.

Class actions are not available under Lebanese Law. However, certain associations and unions may bring actions for the defence of the collective interests of their members. For instance, trade unions and professional syndicates whose members are engaged in collective labour contracts are entitled to initiate legal proceedings concerning such agreement on behalf of their members. No proxy is required from the members of the association or syndicates, provided that the latter have been notified of the matter and have not objected (Article 24 of the Collective Agreements, Mediation and Arbitration Law, enacted by Decree 17386/1964).

The Lebanese Legal Profession Act regulates the legal profession by addressing lawyers’ fees. Article 69 thereof states that lawyers’ fees are prima facie agreed upon in writing between the client and the lawyer. Where no written agreement exists, the courts are competent to determine the lawyers’ fees in light of the Bar Council’s opinion, and in consideration of the importance of the case, the work undertaken by the lawyer and the situation of the client.

In this vein, it is worth mentioning that the Beirut Bar Association has put in place a guideline for lawyers’ fees. These guidelines provide a scale for fees related to company incorporation, contract fees, annual proxies for companies, and success fees.

With regard to the costs of litigation (which include court costs, judicial fees, witness, experts and other professional costs), there are no requirements to provide the clients with a cost estimate under Lebanese law.

Each party can file a request to order provisional and temporary measures (Article 35 of the LCCP). 

The trial judge and the judge of summary proceedings can order provisional and conservatory measures for the protection of rights and the prevention of harm, such as affixing of seal, setting an asset’s inventory, ordering the sequestration or selling of perishable assets and describing the status quo of a situation (Article 589 of the LCCP), upon the request of any of the parties, either in consideration of a guarantee or without it. The petitioner has to show that its rights are in danger of imminent harm that necessitates interim relief as a matter of urgency in order to protect its rights.

The judge of summary proceedings may consider requests for urgent measures in civil and commercial cases without addressing the merits of the dispute. In this capacity, the judge may take measures aimed at removing clear violations of rights or legitimate situations.

Early judgment applications are usually related to interim relief (see 4.1 Interim Applications/Motions) or ex parte proceedings (Articles 594–612 of the LCCP), such as the appointment of an expert, initiating estate proceedings, etc.

Additionally, the LCCP provides for motions that can be raised to strike out a case before addressing its substance. They must be filed within a certain timeframe, prior to any discussion on the merits, or other motions that could be filed at any point in the proceedings (Articles 52-65 of the LCCP) to dismiss the other party’s claims (see 4.3 Dispositive Motions).

There are two main types of defences that can be raised to strike out a case before addressing the substance.

• Procedural defences (exception de procédure) to dismiss the case at a preliminary stage before addressing the merits of the case are also available under Lebanese law. They include grounds such as lack of jurisdiction, lis pendens or the connectivity of the claims, the nullity of the summons or other procedural acts, a request for an extension of time, the transfer of the lawsuit due to legitimate doubts or the existence of a family relationship (Articles 52–68 of the LCCP). These procedural defences must be raised at the outset of the trial, prior to any discussion of the merits of the case or any inadmissibility defence, unless the grounds for the procedural defence arise later on in the proceedings.
• Defences of inadmissibility (fins de non-recevoir) whose aim is to declare the other party’s claim inadmissible, without addressing its merits, due to an alleged absence of the right to bring the case. The defences of inadmissibility include lack of standing, lack of interest, res judicata, or the expiration of procedural deadlines. The defence of prescription (statute of limitations) is also considered a defence of inadmissibility (Articles 62-65 of the LCCP). These defences can be raised at any stage of the proceedings, either upon the request of a party, or by the court if the defence relates to public policy.

The LCCP provides for the possibility of joining a third party or the intervention of a third party. The third party thus becomes a party to the proceedings (Articles 36 et seq of the LCCP). Article 38 of the LCCP provides that any party to the trial may request the joinder of a third party to hear the judgment, or to condemn it with respect to claims similar to those of one of the parties, or for warranty purposes.

As to the procedure, a third party is joined or is involved in the proceedings on the submission of a reasoned request before the court. This request is then notified to the interested third party. The intervening party, or the party to be joined, must have a personal and legitimate legal interest in the action (Article 40 of the LCCP). The intervention or joinder is permitted at any time during the proceedings up until its conclusion. It is allowed before the court of first instance and the court of appeal. The court shall rule on such requests, and if it will authorise a third party to join a lawsuit.

It is also possible for the court, at its own initiative, to join a third party to the proceedings if it deems that this joinder would facilitate resolving the matter, help reveal the truth, and protect the rights of the parties or one of them, or the rights of the person to be joined. In this context, the court clerk must notify the third party of the joinder decision. The court may require each party to notify the third party with their documents and set a deadline for the third party to respond.

However, the failure to join a particular party does not preclude a litigant third party from bringing the same or similar claims against that party.

This is not applicable in this jurisdiction.

The judge may grant the interim application in consideration of a guarantee. The LCCP does not provide further details as to the costs. In practice, the costs are subject to the court’s discretion. In general, the losing party incurs the costs of the proceedings only in relation to judicial costs. The court will generally not rule on attorney fees.

The LCCP does not explicitly provide a timeframe for a court to deal with an interim application. However, Article 583 of the LCCP states that the judge of summary proceedings, who is competent to look into applications, shall render the decision without delay. Pursuant to Article 455 of the LCCP, the court may shorten the deadlines for the exchange of submissions in cases that require urgency.

The Lebanese law does not provide for a concept equivalent to that of discovery in common law countries. Each party shall submit, at once, all the evidence that they rely upon for each claim.

The court may, on its own initiative, order any investigation to supplement the evidence submitted by the parties.

Additionally, refer to 5.4 Alternatives to Discovery Mechanisms.

As mentioned in 5.1 Discovery and Civil Cases, discovery is not covered by Lebanese law. However, the LCCP provides for the possibility to obtain evidence from third parties. During the proceedings, the court may intervene and order a person in the trial compelling them to submit a document in their possession. The court may also, on its own initiative or upon the parties’ request, order the retrieval of documents from official departments, if the parties are unable to obtain them.

This is not applicable in this jurisdiction (see 5.1 Discovery and Civil Cases).

According to Article 203 of the LCCP, a party may request the opponent to produce any document essential for the outcome of the dispute, provided that:

• the law allows the above party to request such document production or deliverance;
• the document is common between the requesting party and the opponent (the document is considered common if it is drafted in the interest of either party) or evidences their mutual rights and obligations; and
• the opponent relied on the document at any time during the proceedings.

Pursuant to Article 205 of the LCCP, if a party substantiates its request or the opposing party admits possession of the document, or remains silent, the court shall order the document to be produced either immediately or within a specified timeframe.

However, if the opposing party denies possession and the requesting party fails to provide sufficient evidence to support its claims, the opposing party must assert under oath that the disputed document either does not exist, that they are unaware of its existence or whereabouts, or that they have not concealed it nor been negligent in searching for it.

Attorney-client privilege is explicitly established under the Lebanese Legal Profession Act, which applies exclusively to lawyers registered with the Bar. Article 92 of the Lebanese Legal Profession Act prohibits lawyers from disclosing any information entrusted to them or acquired in the course of their professional duties, even after the termination of their mandate. Furthermore, lawyers are barred from testifying against their clients in any lawsuit in which they are currently, or have previously been, engaged as counsel.

However, it is important to note that a lawyer may testify against their client in cases concerning the lawyer’s fees, with such testimony strictly limited to the matter at hand.

Attorney-client privilege extends to in-house counsel, provided they are registered with the Bar.

Additionally, the breach of professional secrecy by a lawyer may constitute a criminal offence under Article 579 of the Lebanese Criminal Code.

An exception to attorney-client privilege was introduced by the Anti-Money Laundering Law No 44 of 2015, which imposes specific obligations on lawyers in the fight against money laundering and terrorist financing. These obligations apply when lawyers engage in certain activities that generally fall outside their typical professional duties, such as the purchase and sale of real estate, management of clients’ movable and immovable assets, and management of bank and securities accounts.

There are no particular rules in the LCCP with respect to disallowing disclosure of a document. Depending on the nature of the documents, they may be subject to specific rules or regulations, such as banking secrecy laws, professional regulations, privacy protection, etc.

As mentioned in 4.1 Interim Applications/Motions, the trial judge and the judge of summary proceedings can order provisional and protective measures that necessitate relief to be granted as a matter of urgency, in order to protect rights.

Additionally, a creditor may request the president of the Enforcement Bureau to order a provisional seizure on the debtor’s assets, as security for its rights, provided that the creditor’s rights are due and are not contingent upon a future event.

In some circumstances, such a provisional seizure may be available ex parte on the basis of a probability of success in a main action on the merits (see 6.3 Availability of Injunctive Relief on an Ex Parte Basis).

It is worth noting that the amended law on Lebanese banking secrecy (Law No 1/1956 as amended by Law No 306/2022) provides that funds held at banks operating in Lebanon may be frozen by a decision from the Special Investigation Commission as per the Lebanese Anti-Money Laundering Law, and contains language to the effect that such funds may be seized by a decision of the competent courts in other circumstances listed in that law, such as in the event of corruption and financial offences listed in the Lebanese Penal Code.

Also, Lebanese law does not provide for injunctions to prevent parallel proceedings in a jurisdiction abroad (ie, anti-suit injunction).

The LCCP does not provide a particular timeframe in which the judge must issue urgent injunctive relief. However, it does provide that the judge should render their decision without delay (Article 583 of the LCCP). In addition, when the circumstances so require, the judge may decide to hear the parties outside of court hours and during public holidays (Article 582 of the LCCP).

Injunctive relief can be obtained on an ex parte basis pursuant to Article 593 of the LCCP onwards.

The applicant may be held liable for damages suffered by the respondent if the former abused their right in bringing a lawsuit (Articles 10 and 551 of the LCCP). As such, the applicant may be subject to a penalty, ranging from LBP2 million to LBP100 million (Article 11 of the LCCP).

As a general rule, the Lebanese judge has jurisdiction over assets located within Lebanese territory, which is a matter of sovereignty. Unless provided otherwise in a treaty concluded between Lebanon and another country, injunctive relief cannot be granted against the international assets of a respondent.

Injunctive relief can be obtained against third parties. For instance, a seizure may be obtained against the debtor’s assets that are in the possession of a third party. As such, the third party will be prohibited from disposing of those assets. This possibility is restricted to the following assets (Article 881 of the LCCP):

• sums of money and liquid debts;
• financial papers listed on the stock exchange, such as shares and bonds;
• income and profits generated by companies;
• parts in companies, even before the company’s dissolution; and
• fungible assets and movable property.

The judge of summary proceedings may order a penalty if the respondent fails to comply with the terms of an injunction (Article 587 of the LCCP).

The trial process in civil cases is primarily conducted in writing.

However, it is always possible for the court to hold a hearing, which may involve oral arguments, witness examination (Articles 254–298 of the LCCP) and expert examination (Articles 308–362 of the LCCP).

Specifically, under Article 459 of the LCCP, for cases not exceeding LBP40 million, or in urgent matters, the judge may set a hearing date immediately after the lawsuit is filed, without requiring any written exchange of submissions.

The LCCP does not provide for the case management hearing system. The court has discretionary power over the organisation of hearings in civil matters. As noted in 7.1 Trial Proceedings, some proceedings may be conducted without the exchange of written submissions and others may be conducted without hearings.

The case before the summary judge is heard in the session held by the judge on the day and time decided by the judge. The notice period for summoning the parties is one full day unless the judge decides to shorten this period. The judge may also authorise the summoning of the parties within a period the judge determines, either to the court, the location of the dispute, or even their residence, including on official holidays and outside of regular working hours. In such cases, the judge appoints one of the bailiffs to deliver the decision to shorten the notice period (Article 582 of the LCCP).

This is not applicable in this jurisdiction.

The burden of proof lies with the party asserting a fact, and what is to be proved should be relevant to the dispute and possible to prove (Article 132 of the LCCP). The court may order an investigation to complement the parties’ evidence (Article 135 of the LCCP). Generally, the types of evidence admissible under Lebanese law include documentary evidence (eg, authenticated and private deeds), confessions, testimonies, investigations, etc, and are specifically regulated under the LCCP.

Expert testimony is typically permitted at trial.

Pursuant to Article 313 of the LCCP, the court may designate an expert to undertake expertise, submit technical advice or undertake a technical investigation for a specific matter.

In addition, depending on the circumstances of the case, a party may submit expert reports/opinions, which would be treated as documentary evidence in the file.

Expert examination is set out in detail under Articles 308–362 of the LCCP.

See 1.3 Court Filings and Proceedings.

The parties, along with the judge, are responsible for ensuring the proper conduct of the proceedings.

Regarding the judge’s intervention, it is important to note that the judge plays an active role during the hearing by (i) conducting the examination of witnesses and experts, (ii) directing questions to the parties or their legal representatives, and alerting them to any issues they may have overlooked, and (iii) ordering investigations to supplement the parties’ evidence.

Generally, after the conclusion of the pleadings, the judge declares the trial closed and sets a date for issuing the judgment within a period not exceeding six weeks. The judge may pronounce the judgment in the session immediately after the conclusion of the pleadings, or it may defer its issuance to a later session.

If it becomes necessary to defer the issuance of the judgment – typically when the case requires further consideration and analysis – the judge must announce this in the session, specifying the date on which the judgment will be rendered and providing the reasons for the postponement.

After an action has been initiated (ie, an initial submission/statement of claim has been filed by the plaintiff), a defendant has 15 days to file their answer submission/statement of defence along with all supporting documents (Article 449 of the LCCP).

Following notification of the statement of defence to the plaintiff, the plaintiff has ten days to file a reply submission (Article 452 of the LCCP). Following notification of the reply submission to the defendant, the defendant in turn has ten days to file a rejoinder submission (Article 452 of the LCCP). This would conclude the normal exchange process.

Article 453 of the LCCP states that upon the expiration of these time limits, neither party may submit further responses unless they provide an acceptable excuse or reason, in which case the court president or sole judge will set new deadlines. Also, Article 455 of the LCCP allows the court to expedite time limits in urgent cases, provided that the time limit it sets is not less than 24 hours. In other cases, it may extend them upon request if justifiable. Decisions regarding time limit adjustments are made in court chambers. The same process applies to counterclaims, commencing with the statement of counterclaim. Typically, after the conclusion of the pleadings, the judge declares the trial closed and sets a date for issuing the judgment within a period not exceeding six weeks.

That said, and bearing in mind that the time estimates are always speculative, the proceedings before the court of first instance vary between three months and four years, depending on the complexity of the case. In this regard, the authors are aware that some delays have occurred over the past three years due to a confluence of factors. These include court suspensions during the pandemic, the ongoing Lebanese crisis, and disruptions to court operations caused by court clerks and lawyers.

At any point during the trial proceedings, the parties may reach a settlement, and request the judge to issue a decision ratifying that settlement (Article 461 of the LCCP). The judge’s approval is not required.

In this respect, the COC explicitly excludes certain matters from being settled, including those related to personal status, public policy, or personal rights that fall outside the scope of trade. However, settlements concerning monetary interests arising from personal status issues or offences are permissible (Articles 1037 and seq. of the COC).

On another note, in civil matters, a claimant or counterclaimant may, at any time during proceedings, withdraw their claim and settle the case. However, this requires the defendant’s consent, which cannot be unreasonably withheld (Articles 518 and seq. of the LCCP).

The settlement of a lawsuit may remain confidential if agreed upon by the parties.

Settlement agreements can be enforced before the judge of execution.

Lebanese law does not specifically provide a mechanism for the setting aside of settlement agreements. However, settlement agreements are subject to contract law. They can therefore be annulled or set aside using the general procedures established for contract rescission.

A successful litigant will obtain either specific performance or damages.

Damages are generally assessed by the court, but can also be determined by law or through the parties’ agreement by means of liquidated damages (Articles 259 and 266 of the COC). In addition to material damages, Lebanese law provides for compensation for moral damages (Article 263 of the COC).

As a general rule, damages must correspond to the harm incurred and include any loss of profit (Article 260 of the COC). Indirect damages may be considered if they are directly linked to the non-performance of the obligation (Article 261 of the COC).

The competent judge may exceptionally award compensation for future damages (eg, loss of profits) if their realisation is certain and can be precisely assessed (Article 264 of the COC).

In the context of contracts, compensation covers only those damages that were foreseeable at the time the contract was concluded, provided the debtor has not committed fraud (Article 262 of the COC).

Interest will be computed upon the maturity date of the debt/obligation which, according to the circumstances of the case, may fall before or after the judgment is rendered.

The statute of limitations for interest is five years, which runs from the day the obligation/right becomes due (Articles 348 and 350 of the COC).

The enforcement of a domestic judgment involves filing an application to this end before the execution judge (the “Enforcement Bureau”). Pursuant to Article 828 of the LCCP, the Execution Judge is the judicial authority competent to enforce a domestic judgment.

The request for enforcement should be submitted at the clerk’s office of the Enforcement Bureau and include all relevant details (ie, the name of the person requesting enforcement, the name of the opponent party, their place of residence, titles, capacity, and elected domicile, along with the judgment for which execution is sought, the requested amount, and the assets to be seized where relevant, etc (Article 837 of the LCCP).

The enforcement process is subject to certain conditions. For instance, a domestic judgment cannot be enforceable unless it has the force of res judicata (Article 836 of the LCCP) or is an interim measure or an ex parte decision (which is enforceable de jure).

For enforcement purposes, certain measures such as seizures and third-party debt orders may be ordered.

Additionally, Article 569 of the LCCP provides for the courts’ power to order a penalty to ensure the enforcement of the judgments in case of partial, non-execution, or delay in the execution of the judgment.

Insolvency proceedings may be initiated against the defaulting party in the event where the defaulting party is a trader in a cessation of payments situation. For completeness, cessation of payment occurs when it is established that the debtor is in a desperate financial situation, and has failed to pay any outstanding debt that is: (i) commercial in nature (ii) due and (iii) certain (ie, typically, a final court judgment would fulfil this condition).

Unless otherwise provided by virtue of an international convention signed between Lebanon and a foreign state, foreign judgments are recognised in Lebanon via an exequatur order, which is a pre-requisite to enforcement. To obtain an exequatur order, an application must be filed ex parte to the President of the Court of Appeal – Civil Section, having jurisdiction over:

• the defendant’s domicile;
• the defendant’s residence; or
• the assets subject to execution.

If none of the above-mentioned scenarios applies, the request shall be submitted to the President of the Beirut Court of Appeal (whose jurisdiction would, in this case, be established by default), pursuant to Article 1013 of the LCCP.

Article 1014 of the LCCP provides that exequatur is granted to a foreign judgment that satisfies the following conditions.

• The judgment should be rendered by competent judges in accordance with the laws of the country in which the decision was rendered, provided that their competence is not only determined by the nationality of the plaintiff. If two foreign judgments are rendered by two/in the name of two different jurisdictions but in relation to the same subject matter and among the same opponents, the Enforcement Order is granted to the judgment that is in conformity with the rules of the Lebanese law pertaining to international competence.
• The judgment should be enforceable and should have acquired the force of res judicata in the country where it was rendered. Nevertheless, the Enforcement Order can be granted to provisional and ex parte decisions that have become enforceable in the country concerned.
• The losing party should have been duly notified of the lawsuit that resulted in the judgment and the right of defence should have been duly accorded/provided to them.
• The judgment should be rendered in the name of a country whose laws allow the enforceability of Lebanese judgments on its territories after scrutinising them or after giving them an exequatur.
• The judgment does not violate public policy.

As an exception, foreign decisions related to personal status, capacity and issued ex parte, automatically produce their effects in Lebanon without the need for an exequatur, provided they are not rendered through so-called contentious proceedings abroad (Article 1012 of the LCCP).

Once the exequatur is granted, the foreign judgment becomes enforceable in Lebanon. The competent Enforcement Bureau will then proceed with its execution, in accordance with the provisions of the LCCP governing enforcement. This involves pursuing the judgment debtor’s movable and immovable assets.

Article 639 of the LCCP provides that all decisions issued by the court of first instance may be subject to appeal, except those that are excluded by the law. According to Article 640 of the LCCP, the decisions adjudicating a dispute of an amount not exceeding LBP150 million cannot be subject to appeal. However, the decisions issued by the Labour Arbitral Council are not subject to appeal but only to cassation.

The appeal is governed by Articles 638–667 of the LCCP. As stated in 10.1 Levels of Appeal or Review to a Litigation, all judgments issued by the courts of first instance may be subject to appeal, unless provided otherwise by law (Article 639 of the LCCP). Furthermore, the appeal is filed at the court registry and shall be signed by a lawyer and include the appealed judgment with mention of the court of first of instance that issued it, the date, the reasons upon which the party is relying in its request and the requests for relief (Article 655 of the LCCP). The grounds for appeal are set out under 10.4 Issues Considered by the Appeal Court at an Appeal.

The procedure for taking an appeal is provided in 10.2 Rules Concerning Appeals of Judgments.

Unless otherwise provided by law, the timeframes to lodge an appeal (Article 643 of the LCCP) are as follows:

• eight days from receiving notification of a decision issued by the judge of summary proceedings, the President of the Enforcement Bureau, and all decisions ordering interim measures; and
• 30 days from receiving notification of other types of decisions issued by the court of first instance.

Unless provided otherwise by virtue of a specific text, the time limit to file an appeal starts running from the day of notification of the decision (Article 643 of the LCCP). That said, the losing party may request notification of the judgment from the court clerk upon the issuance of the final judgment, and immediately file an appeal after paying the relevant fees, pursuant to Article 642 of the LCCP.

Appeals

An appeal may not be made in relation to disputes with an amount that does not exceed LBP150 million (Article 640 of the LCCP).

On an exceptional basis, an appeal may be filed against a judgment even if the amount in dispute does not exceed LBP40 million, in the following cases:

• lack of ratione materiae jurisdiction;
• nullity of the judgment or nullity of the fundamental procedures on which it is based.;
• contradiction in the dispositive section of the judgment that makes it impossible to enforce;
• omission to rule on any of the parties’ claims; or
• ruling on a claim that was not raised by the parties, or a ruling that exceeds the claims made.

The court of appeal will review the case as a whole – ie, the facts and the law (Article 659 of the LCCP).

New Claims

Pursuant to Article 662 of the LCCP, new claims are not allowed at the appeal stage, unless these claims:

• are counterclaims and/or they arose explicitly or implicitly out of the initial claim;
• relate to a set-off;
• were used as defences to reject the opposing party’s claims;
• aimed to decide on issues arising out of the intervention of a third party;
• aimed to decide on issues arising out of the occurrence or discovery of a factual circumstance; or
• seek the same outcome as requested before the court of first instance, even if based on a new legal ground.

In the absence of an objection from the opposing party, new claims are in any event admissible before the court of appeal, pursuant to the same Article.

That said, it is worth noting that requests for interest, arrears, rent dues, and other entitlements that have become due since the issuance of the judgment, as well as claims for compensation for damages arising from the judgment are not considered new claims. They may therefore be raised on appeal as additional claims.

The courts may not impose conditions on granting an appeal other than those stated by the law. As set out in 10.1 Levels of Appeal or Review to a Litigation, all judgments issued by the courts of first instance may be appealed, unless provided otherwise by law.

After hearing an appeal, the court of appeal either validates or invalidates the court of first instance’s judgment.

In this regard, if the court of first instance’s judgment is overturned, then the court of appeal shall re-examine the merits of the case.

The appeal decision may be subject to appeal to the Court of Cassation (pourvoi en cassation) provided that certain conditions are met (Article 708 of the LCCP).

In principle, a losing party bears the costs of the successful party. These costs include court fees, witness and expert fees, procedural expenses and attorney fees. It is worth noting that lawyers’ fees are not typically reimbursed in full.

Typically, costs are borne by the losing party, as per Article 541 of the LCCP.

That said, the court may order the successful party to bear all or part of the costs if:

• the losing party had acknowledged the right before the lawsuit was filed; or
• the successful party caused unnecessary or additional costs due to its mistake, or if it withheld decisive documents or their contents from the opposing party.

It is also worth noting that the court may allocate the costs between the parties as it deems appropriate if each party is found partially unsuccessful in its claims.

Regarding the mechanisms for challenging the amounts of allocated costs, an objection may be submitted to the court clerk within three days of the notification of the judgment or the statement of costs. The court that issued the judgment will review the objection in chambers, after summoning the parties or the objecting party to appear, with a 24-hour notice if such summons is deemed necessary (Articles 548-550 of the LCCP).

The court has discretionary power when awarding costs, considering the specific circumstances of the case and the parameters outlined in 11.1 Responsibility for Paying the Costs of Litigation.

This is not applicable in this jurisdiction.

The legal landscape in Lebanon is evolving positively towards encouraging recourse to arbitration and other ADR mechanisms. ADR is well received in Lebanon, with arbitration, conciliation and mediation being the most common method.

Arbitration

Lebanon is an arbitration-friendly jurisdiction. Its arbitration legislation is modern, based on French arbitration law, and embraces well-established principles of international arbitration. The Lebanese courts are also familiar with and supportive of the laws and practices of international arbitration.

Mediation

Judicial mediation is another method that has been favoured recently through the enactment of Law 82, which entered into force on 18 October 2018. In addition, the Lebanese Parliament enacted Law No 286/2022 in April 2022 specifically addressing Conventional Mediation. This law was intended to complement the legal framework of mediation in Lebanon. That said, professionals remain cautious about utilising this method of dispute resolution, primarily due to the absence of implementing regulations issued by the Ministry of Justice.

With regard to conciliation, although it is not a regulated field, the LCCP empowers and encourages the judge in every dispute to urge the parties to reach an agreement before commencing the proceedings.

As set out in 12.1 Views of ADR Within the Country, the legal system in Lebanon favours recourse to ADR, notably arbitration and mediation.

Although ADR is not compulsory and does not form part of court procedures, the LCCP promotes conciliation as inherent to the judge’s duties (Article 375 of the LCCP). However, conciliation initiated by the judge during the court proceedings is not mandatory and there are no sanctions for refusing to engage in it.

The main institutions offering and promoting ADR are the following.

• The Lebanese Arbitration and Mediation Centre (LAMC) of the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon, founded in 1995, which has its own Arbitration Rules and Mediation Rules (recently amended and entered into force on 1 July 2024). The LAMC covers training and accreditation of mediators and arbitrators and offers various facilities for the conduct of mediation and arbitration sessions.
• The Chartered Institute of Arbitrators (CIArb) Lebanon Branch, which principally serves as a forum for education and training in ADR and may sometimes act as an appointing authority.
• The Lebanese and International Arbitration Centre of the Beirut Bar Association (LIAC-BBA). The Beirut Bar Association has established an independent centre for arbitration in order to provide services for domestic and international arbitration. This centre has adopted its arbitration rules. However, to the best of the author’s knowledge, this centre is not very active.
• There are also other mediation centres that aim to develop and promote mediation in Lebanon as an alternative dispute resolution method, such as the Professional Mediation Centre operating under the auspices of the Saint Joseph University of Beirut.

Arbitration proceedings in Lebanon are governed by specific provisions of the LCCP, which were enacted by Decree Law 90/83, with amendments resulting from Law No 440, dated 29 July 2002.

The LCCP covers the conduct of arbitration proceedings as well as the enforcement and recognition in Lebanon of arbitral awards. In addition, Lebanon is a signatory to the New York Convention of 1958 on Recognition and Enforcement of Foreign Awards (NY Convention) and the Washington convention on the settlement of investment disputes between states and nationals of other states.

Under Lebanese law, the following types of disputes are non-arbitrable and are subject to the exclusive jurisdiction of Lebanese national courts:

• disputes related to personal status (nationality, age, adoption, divorce and marriage). However, disputes relating to monetary compensation resulting from personal status disputes remain arbitrable;
• disputes related to non-negotiable personal rights such as the right to physical integrity, human dignity, privacy and the right to food. However, similar to personal status, any dispute relating to monetary compensation associated with those personal rights is arbitrable;
• disputes related to public policy matters, including all matters considered by law as guaranteeing social, economic or political interests;
• disputes arising from insolvency proceedings – as provided by Article 490 of the Code of Commerce, state courts have exclusive jurisdiction in insolvency matters;
• labour and social security disputes, which fall under the exclusive jurisdiction of the Lebanese Labour Arbitral Council; and
• commercial representation disputes, which fall under the exclusive jurisdiction of Lebanese courts pursuant to Decree Law No 34, dated 5 August 1967. However, it should be noted that in recent years the Lebanese courts have adopted a more permissible stance towards the arbitrability of such disputes in specific circumstances (eg, when the arbitral tribunal is required to apply Lebanese law on the merits).

As a preliminary note, the LCCP makes a distinction between domestic and international arbitration, the latter being governed by more flexible rules. The means of recourse against domestic awards are broader than the means of recourse available against international awards, as it will be further outlined below.

Domestic Arbitration

Domestic awards can be challenged through the following means of recourse:

• third-party opposition – third-party opposition is available before the court originally having jurisdiction to rule over the dispute in the absence of an arbitration agreement;
• appeal – appeal against a domestic award is possible unless the parties waived their right to appeal in the arbitration agreement (Article 799 of the LCCP). That said, arbitral awards that have been rendered ex aequo et bono, may not be appealed unless the parties reserved their right to do so in the arbitration agreement (Article 799 of the LCCP);
• retrial – a request for retrial may be brought under the same conditions that apply to court judgments before the Court of Appeal in whose jurisdiction the award was rendered. The decision of the Court of Appeal can be subject to cassation and third-party opposition (Article 808 of the LCCP); and
• annulment – a motion to set aside a domestic award is exclusively available in the circumstances enumerated under Article 800 of the LCCP.

The grounds for annulling awards in domestic arbitration are set out under Article 800 of the LCCP, as follows:

• the award is rendered without an arbitration agreement or on the basis of an agreement that is null or void due to the expiry of the relevant time limit for rendering the award;
• the award is rendered by arbitrators who were not appointed in accordance with the law;
• the arbitrators fail to comply with the mission conferred upon them;
• the award is issued without due respect of rights of defence;
• the award does not contain the mandatory requirements related to: (i) the reliefs sought by the parties; (ii) the grounds and means substantiating the reliefs; (iii) the name of the arbitrators; (iv) the ratio decidendi of the award, (v) the date of the award, and (vi) the signature of the arbitrators; and
• violation of public policy.

International Arbitration

International awards can be challenged through the following means of recourse.

• Appeal against the decision denying exequatur – the appeal has to be initiated before the Court of Appeal within 30 days from the notification of the decision refusing exequatur. The Court of Appeal’s decision rendered in this respect is subject to cassation before the Court of Cassation.
• Annulment of international awards rendered in Lebanon pursuant to Article 819 of the LCCP, on the grounds set out in Article 817 of the LCCP, as follows:
1. the award is rendered without an arbitration agreement or on the basis of an agreement that is null or void due to the expiry of the relevant time limit for rendering the award;
2. the award is issued by arbitrators not appointed in accordance with the law;
3. the arbitrators fail to comply with the mission conferred upon them;
4. the award is issued without due respect of the rights of defence; and
5. violation of international public policy.

Awards Rendered in Foreign Jurisdictions

The means of recourse available against foreign awards are the following.

• Appeal against the decision refusing to grant exequatur to a foreign award – pursuant to Article 816 of the LCCP, the request has to be submitted within 30 days from the notification of the decision refusing exequatur. The Court of Appeal’s decision is subject to cassation before the Court of Cassation. The Court of Cassation’s review will be limited to legal grounds only.
• Appeal against the decision granting exequatur –this appeal is only available in specific circumstances set out in Article 817 of the LCCP, as outlined above.

No annulment proceedings are available against awards rendered overseas.

The recognition and enforcement of an award in Lebanon is made through an ex parte exequatur proceeding.

The competent courts to grant exequatur depends on the nature of dispute (ie, whether it is a civil or administrative dispute). In civil and commercial matters, exequatur requests are filed before the President of the Court of First Instance, either at the place where the award was rendered, if an award was rendered in Lebanon, or in Beirut if the award was rendered outside Lebanon. In administrative matters, exequatur requests should be filed before the President of the State Council (Articles 793, 795 and 815 of the LCCP).

For either domestic, international or foreign awards, the exequatur application must be accompanied with the following documentation (i) the arbitral award and (ii) the arbitration agreement or a certified copy of these documents (Articles 793, 814 and 815 of the LCCP). If the award and/or arbitration agreement are in a foreign language, a certified Arabic translation, or made by a sworn translator is required.

For international or foreign awards, the award should be translated into Arabic and judges will verify (i) the existence of the award and (ii) that recognition of the award does not manifestly violate Lebanese international public policy (Articles 814 and 815 of the LCCP).

Pursuant to Article 796 of the LCCP, exequatur is placed on the award deposited. Any decision rejecting the exequatur must provide specific reasons for doing so.

Once the exequatur is granted, the procedure for enforcement typically mirrors that used for enforcing court decisions – the competent Enforcement Bureau will carry out the execution of the award in accordance with the provisions of the LCCP governing enforcement. This includes pursuing the award debtor’s movable and immovable assets.

With regards to the means of recourse, refer to 13.3 Circumstances to Challenge an Arbitral Award.

In Lebanon, there are no new acts or pieces of legislation on or involving dispute resolution expected in the forthcoming year.

However, it is worth noting that there are discussions to reform the arbitration law in the near future, but these have not yet materialised.

In the coming years, the most probable area of growth in commercial disputes will likely centre around commercial agency contracts and banking disputes.

Commercial Agency Contracts

Historically, these contracts were governed by Decree-Law No 34 of 1967 (DL No 34/67), which granted Lebanese agents exclusivity and protection in relation to foreign principals or other agents in Lebanon. However, the introduction of the long-awaited Competition Law on 17 March 2022 (the “Competition Law”), brought significant changes. This law affected key provisions of DL No 34/67, particularly the long-standing concept of exclusivity that had been safeguarded for over 50 years.

Under current Lebanese legislation, exclusivity still exists if the criteria outlined in Article 1(2) of DL No 34/67 are met. However, the Competition Law introduces notable changes regarding the enforceability of such exclusivity rights vis-à-vis third parties. Specifically, a third party cannot be negatively impacted by the presence of an exclusivity clause or its breach, such as when purchasing products from a manufacturer/principal with an exclusive distributor in Lebanon. Nonetheless, the exclusivity clause remains valid and enforceable between the contracting parties.

Banking Disputes

The Lebanese financial crisis has given rise to another prominent area of dispute: the currency of payment, especially in agreements denominated in foreign currency. These issues are particularly prevalent in loan agreements between banks and their clients. Lebanese courts have supported both perspectives in local contracts – either requiring repayment in the agreed foreign currency or permitting payment in the national currency, even when a foreign currency clause exists.

Similar currency-related disputes may also arise between banks and foreign investors or foreign funds, where the Lebanese courts typically uphold the contractual obligation to settle payments in the designated foreign currency if the agreement is deemed an international contract.

In addition to currency-related disputes, another significant area of litigation has emerged concerning the insolvency of banks. With depositors facing restrictions on accessing their foreign currency accounts, some have turned to legal action by initiating insolvency proceedings against banks. Depositors argue that by failing to meet their obligations to pay demand deposits in cash or process international transfers, the banks are in a state of cessation of payment, justifying the application of insolvency laws, specifically Law No 2 of 1967, dated 16 January 1967, and its implementing Decree No 7739 dated 3 July 1967 on Bankruptcy (Law No 2/67).

Despite these claims, recent court decisions have consistently rejected insolvency declarations against Lebanese banks stating that declaring a Lebanese bank insolvent during the financial crisis could trigger a series of insolvencies across the banking sector, undermining public credit and further destabilising the national economy. The courts reasoned that the provisions of Law No 2/67 were not intended to apply in the context of a system-wide financial collapse, but were designed for isolated cases of insolvency.

Nonetheless, the possibility of bank insolvency cannot be ruled out, and many claims are being brought forth in this regard.