Unraveling the Libyan Investment Authority saga and its impact on Creditors’ Rights
30 October 2024
Archipel Secures Landmark Victory for Clients of Lebanese Banks
Paris
30 October 2024
Archipel Wins Major Victory for Clients of Lebanese Banks
On 18 September 2024, the French Cour de cassation delivered a groundbreaking decision (https://lnkd.in/eW4mzjQN) that will significantly benefit French and other EU consumers with money stuck in failing Lebanese banks. The ruling marks a major victory for clients affected by the ongoing financial crisis in Lebanon.
In a remarkable three-year legal journey, Archipel in collaboration with ASAS Law Firm (in Beirut) and special cassation counsel Jérôme Ortscheidt secured consecutive wins at first instance, appellate, and now cassation levels.
The courts’ decisions affirm three crucial points:
- Jurisdiction: French courts have the authority to adjudicate these matters.
- Ineffective Banking Manoeuvres: The strategy employed by Lebanese banks of issuing non-cashable checks drawn on the Central Bank of Lebanon to a Lebanese notary is deemed artificial and ineffective.
- Asset Recovery: EU clients are permitted to pursue claims against Lebanese banks' assets, enabling them to secure their entire claim, including principal, interest, and costs.
This latest ruling sets a significant precedent for international banking disputes and reinforces the protection of EU consumers' rights in cross-border financial matters.
In a remarkable three-year legal journey, Archipel in collaboration with ASAS Law Firm (in Beirut) and special cassation counsel Jérôme Ortscheidt secured consecutive wins at first instance, appellate, and now cassation levels.
The courts’ decisions affirm three crucial points:
- Jurisdiction: French courts have the authority to adjudicate these matters.
- Ineffective Banking Manoeuvres: The strategy employed by Lebanese banks of issuing non-cashable checks drawn on the Central Bank of Lebanon to a Lebanese notary is deemed artificial and ineffective.
- Asset Recovery: EU clients are permitted to pursue claims against Lebanese banks' assets, enabling them to secure their entire claim, including principal, interest, and costs.
This latest ruling sets a significant precedent for international banking disputes and reinforces the protection of EU consumers' rights in cross-border financial matters.
