Enforcement of Foreign Judgements and Arbitral Awards in Libya
Foreign judgements are judgements issued by a court or governing body in one jurisdiction against a party in another jurisdiction. The parties to these disputes may experience challenges in retaining their rights and exploiting the prospects awarded to them when faced with the barrier of jurisdiction differences.
Libya, like many other jurisdictions, has allowed the enforcement of foreign judgements and arbitral awards as per the provisions of the Advocacy Law and the New Arbitration Law No. 10 of 2023. However, this permissibility does hinge on several conditions.
An initial condition stipulated as per the provisions of Article 405 of the Advocacy Law is the principle of reciprocity, wherein judgments and orders issued in a foreign country may be ordered to be implemented under the same conditions stipulated in the law of that country for the implementation of Libyan judgments and orders therein. For instance, if the law of the foreign country mandates that the judge be competent to issue the judgement, then the Libyan judge shall not order the enforcement of the judgment issued in that foreign country until he has verified that it was issued in accordance with the rules of Libyan international jurisdiction.
Moreover, the conditions in Article 407 of the same law are as follows:
1. The judgment or order was issued by a competent judicial body in accordance with the law of the country in which it was issued, and that it has acquired the force of res judicata in accordance with that law.
2. The parties have been summoned to appear and are duly represented.
3. The judgment or order does not conflict with a previous judgment or order issued by Libyan courts.
4. The judgment or order does not contain anything that violates morals or the rules of public order in Libya.
Further, the Advocacy Law has allowed the enforcement of official instruments, to be enforced as per the same rules that are required for enforcement of Libyan official instruments in that jurisdiction. This request for an order to enforce notarized documents shall be made by means of a petition submitted to the judge of urgent matters at the court of first instance within whose jurisdiction the enforcement is to take place. The general rules for orders on petitions shall be followed (Article 470/2). The court shall rule on the request for an order to execute expeditiously (Article 409).
In regard to Arbitral Awards, and as per the provisions of Advocacy Law, awards issued in a foreign country may be ordered to be enforced if they are final and enforceable in the country in which they were issued, subject to the rules set forth in the preceding articles. In addition, the New Arbitration Law No. 10 of 2023 provides further details for the procedures of the enforcement.
The requirements include a further emphasis on applying the principle of reciprocity, wherein the award shall be submitted to the President of the Court of Appeal. The President of the Court shall issue his order for the enforcement of the arbitral award and stamp it for enforcement within two days of the date of submission of the request.
Moreover, the President of the Court of Appeal in Tripoli may delay the ruling on the enforcement request if it is established that the party against whom the award was issued has appealed the arbitral decision. However, upon the request of the party in favor of whom the award was granted, the President of the Court may order the opposing party to provide adequate guarantees to ensure the enforcement of the award in the event the appeal is dismissed.