Recognition and Enforcement of Foreign Titles in Lebanon

Prior to initiating proceedings for the recognition and enforcement of a foreign judgment in Lebanon, a creditor has several options to assess the debtor’s assets and potential solvency.

If the debtor is a natural person, the creditor may submit a request to the Land Registry Office to verify whether the debtor owns any real estate property or shares in property across Lebanon. This procedure is known as a request for negation of ownership and is a useful tool for asset tracing. Additionally, the creditor may inquire into the ownership of vehicles by filing a separate request with the Traffic Management Authority. Both of these requests require:

• The debtor’s full legal name; and
• A power of attorney (PoA) duly authorizing the creditor’s legal representative to carry out these searches.

If the debtor is a legal entity, the creditor may consult the company’s file kept at the Commercial Register. These records are publicly accessible and typically contain key information such as:

• Names of shareholders and directors;
• Corporate capital and assets; and
• Copies of incorporation documents, amendments, and related filings.

Accessing such information at this preliminary stage can significantly assist the creditor in determining whether enforcement efforts in Lebanon are worthwhile, and can also guide decisions on interim measures, such as asset freezing, following recognition of the foreign judgment.

Pursuant to Article /1010/ of the Lebanese Code of Civil Procedure (CPC), any foreign title must first be recognized through an exequatur proceeding before initiating enforcement measures in Lebanon. However, interim measures such as judicial sequestration and conservatory seizure may be pursued even prior to the recognition process.

In particular, a request for conservatory seizure over the debtor’s assets may be filed even before the issuance of a final decision by the foreign authority. To that end, the creditor must submit a certificate from the foreign court confirming that the lawsuit has been initiated, along with a copy of the filed lawsuit. These documents must be promptly presented before the Lebanese enforcement court, which may, at its discretion, grant the conservatory seizure over the debtor’s assets.

Once the final judgment is rendered by the foreign authority and duly recognized in Lebanon, the conservatory attachment shall be converted into an executory seizure. This approach allows the creditor to preserve their rights and save valuable time during the enforcement process.

The requirements for the recognition of a foreign judgment in Lebanon are:

• The judgment must be issued by a competent court under the laws of its country.
• The judgment must be final and enforceable in the country where it was issued.
• The defendant must have been properly notified of the proceedings and given the opportunity to defend.
• The judgment must be issued by a state that permits enforcement of Lebanese judgments on its territory (reciprocity principle).
• The judgment must not violate Lebanese public order.

An exequatur shall not be granted if the same dispute between the same parties has either already been finally adjudicated by the Lebanese courts, or is still pending before them under a case filed prior to the foreign proceedings.

Regarding the steps to the recognition procedure:

The plaintiff must first submit an exequatur application before the president of the civil court of appeal of Beirut. The petition should include :

• A certified copy of the foreign judgment proving its validity under the issuing country’s law.
• Proof that the judgment is enforceable in the country where it was issued.
• If the judgment was in absentia, certified copies of the summons and proof of service must be provided.
• A certified translation of all submitted documents as required by Lebanese law.

Afterwards, the judge will rule on the matter and decide if the exequatur shall be granted or not.

The time required varies according to the number of files handled by the president of the civil court of appeal, and whether there are any missing information in the submitted documents but generally this process takes between 3 to 6 months.

As for the cost, the court fees for the recognition procedure amount to approximately 50$.

If a foreign judgment has been granted exequatur, the affected party can challenge the decision if they believe any of the requirements have not been met.

The requirements are:

• The judgment must have been issued by a court competent under the laws of its country.
• The judgment must be final and enforceable in the country where it was issued.
• The defendant must have been properly notified of the proceedings and given the opportunity to defend.
• The judgment must have been issued by a state that permits enforcement of Lebanese judgments on its territory.
• The judgment must not violate Lebanese public order.
• There must be no pending case involving the same dispute and the same parties filed before the Lebanese courts prior to the foreign proceedings.
• There must be no final judgment involving the same dispute and the same parties already rendered by the Lebanese courts.

The affected party must challenge the decision before the civil court of appeal within 30 days from the date they were notified.

If the exequatur was refused, the claimant may also challenge the refusal before the civil court of appeal within 15 days from the date of notification.

Under Lebanese law, the principle of “losing party pays the costs of the winning party” applies.

However, during the recognition phase, there is only one party who files the petition and so the costs cannot be imposed on another party since none exists, unless the exequatur decision is challenged by an affected party. In such cases, the costs may be imposed on the losing party following the decision on the challenge. In all cases, Lebanese courts do not have the authority to add any costs related to the foreign judgment itself.

Once recognition has been obtained, the foreign judgment has the same effect as a domestic judgment and can be enforced accordingly with the court of execution.

If the creditor has already taken interim measures (such as conservatory seizure) on the debtor’s assets, these may be directly converted into enforcement proceedings (executory seizure). These proceedings could lead to the seizure of the debtor’s movable and immovable assets, including their bank accounts, wages or pensions, which eventually conclude with the auction sale of the debtor’s assets.

Once recognized and enforced, the foreign judgment may, if certain conditions are met, serve as a legal basis for initiating bankruptcy proceedings against the debtor in Lebanon, provided the debtor is a merchant. In this context, the decision can serve as proof of the debtor’s default and justify the commencement of a bankruptcy action.

If bankruptcy proceedings have already been initiated and are still ongoing, the creditor may join the process by registering their claim and participating in the distribution of the debtor’s estate, subject to the priority rules applicable to all creditors. If, however, the bankruptcy proceedings have concluded, the creditor cannot claim any of the previously distributed amounts but may recover a portion of their debt from any remaining undistributed funds.

It is essential to distinguish between domestic and international arbitral awards, as the recognition process and applicable conditions vary depending on the nature of the arbitration.

A domestic arbitral award concerns disputes arising from matters that are purely internal to Lebanon.

To have such an award recognized and enforced, the claimant must submit a petition to the court of first instance at the seat of arbitration or, alternatively, to the court of first instance of Beirut. The petition must include:

• The original copy of the arbitral award.
• A certified copy of the arbitration agreement.

The decision granting exequatur in domestic arbitration is final and not subject to appeal. However, a challenge to the arbitral award itself is considered as an implicit challenge to the exequatur.

If the court refuses to grant exequatur, the decision may be appealed before the competent court of appeal within 30 days from the date of notification.

An international arbitral award arises from disputes related to international commercial matters.

• Recognition and enforcement in Lebanon require that:
• The existence of the award is proven.
• The award is not clearly contrary to international public order.

To satisfy these conditions, the claimant must submit:

• The original arbitral award and the arbitration agreement, or certified true copies of both, authenticated by the arbitrators or a competent authority.
• A certified translation of all documents if they are in a foreign language, in accordance with Lebanese law.

A refusal to grant exequatur may be appealed unconditionally.

A decision granting exequatur may only be appealed in the following limited cases:

• The award was issued without a valid arbitration agreement or based on one that had expired.
• The arbitrators were not appointed in accordance with legal procedures.
• The award was rendered after the expiration of the arbitrators’ mandate.
• The parties' right to a defense was not respected.
• The award violates international public order.

In both domestic and international arbitration, any appeal must be filed within 30 days from the date of notification, or it will be dismissed as inadmissible.