The Libyan state was able to obtain two successful rulings in September and October involving the equivalent of € 30 million.
Libya’s Supreme Judicial Council’s Litigation Department / Disputes Hearing Abroad Committee reported last Monday that it was able to obtain a ruling from the Paris Court of Appeal in favour of the Libyan state on 5 September 2023 against three Swiss companies.
The 5 September ruling cancelled the order issued by the President of the Paris Court of First Instance on 12 February 2018 granting the executive version of the arbitration award issued in favour of the three Swiss companies Jalouli Ezmedia Company (SF 20.4 million), Sismed Travel Company (SF 8.7 million), and De Latour Company (SF 2.6 million), in Geneva on 27 March 2017. The court ordered each company to pay an amount of 50,000 euros to the State of Libya.
The Paris Court of Appeal issued the ruling against the three companies based on the defences presented by the State of Libya regarding the lack of jurisdiction of the arbitration panel.
This prevented the Libyan state from paying the sums of money claimed in the settlement agreements that were allegedly signed based on a power of attorney from a representative in the Ministry of Finance to conclude an arbitration agreement on behalf of the Libyan state.
Case against the Tunisian company
Libya’s Supreme Judicial Council’s Litigation Department / Disputes Hearing Abroad Committee also reported that the Libyan State was able to obtain a ruling in its favour in September in the arbitration case filed by a Mr. Mohamed Al-Habib Bin Issa Al-Gharbi in his capacity as the legal representative of the Greater Maqata’a Company in Bizerte, Tunisia, against the Libyan State. This claim was based on the bilateral investment promotion and protection agreement between the State of Libya and the Government of the Republic of Tunisia.
The plaintiff, in his capacity as an investor, had filed an investment arbitration lawsuit against the Libyan state to demand compensation worth LD 128.5 million and € 1.05 million for the loss of use and the value of the remaining equipment.
On 10 July 2023, the arbitration panel issued its decision in favour of the Libyan state and ruled to terminate the procedures in the arbitration case instead of suspending it, due to the plaintiff’s failure to pay the expenses of the arbitration dispute. It also obligated the Tunisian company to pay an amount of € 79,000.00 euros and an amount of US$ 134,41,886 with interest for the legal expenses and fees of the Libyan state.