LEBANON Law and Practice Contributed by: Nayla Comair-Obeid, Ziad Obeid and Zeina Obeid, Obeid & Partners
9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant will obtain either specific perfor- mance or damages. 9.2 Rules Regarding 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 dam- ages, 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 prof- its) 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 that the debtor has not committed fraud (Article 262 of the COC). 9.3 Pre-Judgment and Post-Judgment Interest Interest will be computed upon the maturity date of the debt/obligation which, according to the circum- stances of the case, may fall before or after the judg- ment is rendered. The statute of limitations for interest is five years, which runs from the day the obligation/right becomes due (Article 350 of the COC). 9.4 Enforcement Mechanisms of a Domestic Judgment The enforcement of a domestic judgment involves fil- ing an application to this end before the execution judge (the “Enforcement Bureau”). Pursuant to Article
various factors, including court suspensions during the pandemic, the financial and institutional crisis in Lebanon, and disruptions to court operations caused by strikes among court clerks and lawyers.
8. Settlement 8.1 Court Approval
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 plaintiff may, at any time during proceedings, withdraw their claim and settle the case. Such withdrawal is not effective unless approved by the defendant. However, the defendant’s consent is no longer required if, at the time of the withdrawal, the defendant has not yet submitted a statement of defence. In any event, objections by the defendant that are not based on a legitimate reason shall be disregarded (Articles 518 and seq. of the LCCP). 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit may remain confidential if agreed upon by the parties. 8.3 Enforcement of Settlement Agreements Settlement agreements can be enforced before the judge of execution. 8.4 Setting Aside Settlement Agreements Lebanese law does not specifically provide a mecha- nism for the setting aside of settlement agreements. However, settlement agreements are subject to con- tract law. They may therefore be annulled or set aside through the general procedures applicable to contract rescission.
598 CHAMBERS.COM
Powered by FlippingBook