LEBANON Law and Practice Contributed by: Nayla Comair-Obeid, Ziad Obeid and Zeina Obeid, Obeid & Partners
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
• In addition, trainee lawyers are not entitled to attend hearings before the courts of appeal and Court of Cassation, except in specific matters (eg, before the courts of appeal on behalf of the defendants in misdemeanour cases).
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 pro- ceedings. It is relevant to note that, in civil matters, the creditor may be exempted from sending such notice – ie, when the performance of the obligation becomes impossi- ble, or when the obligation concerns the return of an item/asset which the debtor knew had been stolen or obtained through unlawful means, or when the term of the obligation has lapsed (Article 258 of the Code of Obligations and Contracts (COC)). 3.2 Statutes of Limitations Generally, the statute of limitations in civil matters is ten years (Article 349 of the COC). However, shorter limitation periods apply to specific types of disputes (Articles 350–352 of the COC). The statute of limitation runs from the maturity date of the obligation. Articles 354 to 359 of the COC set out the circum- stances under which the statute of limitations can be either suspended or interrupted. For completeness, suspension pauses the running of the statute of limi- tation without resetting the elapsed time. In contrast, interruption not only halts the statute of limitation but also resets the elapsed time, causing a new period to begin from the date of interruption. 3.3 Jurisdictional Requirements for a Defendant 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 juris- diction is established by considering factors such
2. Litigation Funding 2.1 Third-Party Litigation Funding
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. 2.2 Third-Party Funding: Lawsuits To the best of the knowledge of the authors, there have been no lawsuits in Lebanon involving third-party litigation funders. 2.3 Third-Party Funding for Plaintiff and Defendant Not applicable. 2.4 Minimum and Maximum Amounts of Third-Party Funding Not applicable. 2.5 Types of Costs Considered Under Third- 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 amount in dispute. 2.7 Time Limit for Obtaining Third-Party Funding Not applicable. Party Funding Not applicable. 2.6 Contingency Fees
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