LEBANON Law and Practice Contributed by: Nayla Comair-Obeid, Ziad Obeid and Zeina Obeid, Obeid & Partners
ing time limit adjustments are made in court chambers. The same process applies to coun- terclaims, 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 esti- mates 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 fac- tors. 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 cer- tain matters from being settled, including those related to personal status, public policy, or per- sonal 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). 8. Settlement 8.1 Court Approval On another note, in civil matters, a claimant or counterclaimant may, at any time during pro- ceedings, withdraw their claim and settle the
case. However, this requires the defendant’s consent, which cannot be unreasonably with- held (Articles 518 and seq. of the LCCP). 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit may remain confi- dential 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 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 proce- dures established for contract rescission. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant will obtain either specific performance 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 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
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