What is the LIAC-BBA?
The Lebanese and International Arbitration Center of the Beirut Bar Association (LIAC-BBA) is an autonomous arbitration body of the Beirut Bar Association that provides arbitration and alternative dispute resolution services for resolving domestic and international disputes.
The LIAC-BBA administers domestic and international arbitrations conducted under the LIAC-BBA rules of Arbitration.
Although part of the organization of the Beirut Bar Association, the LIAC-BBA carries out its functions in complete independence from the Beirut Bar Association and its organs. It is governed by its internal regulations and performs its duties under the supervision of its own bodies.
The LIAC-BBA does not itself resolve disputes. It administers proceedings in accordance with its arbitration rules.
What is arbitration and why is it a
preferable method of resolving disputes?
Arbitration is an alternative method of dispute resolution to litigating in state courts.
Arbitration is widely used in resolving commercial disputes, as it is faster compared to litigation in state courts. Arbitration is also flexible as the parties have the ability to nominate the arbitrator or arbitrators themselves and tailor the process to meet their needs.
Arbitration further provides the parties with an opportunity to nominate arbitrators with specific professional competence or qualifications to resolve their dispute.
An arbitral award is final and binding. It is enforceable in Lebanon and internationally.
How can parties submit their disputes to arbitration?
Arbitration is based on agreement. Arbitration is typically agreed upon by inserting an arbitration clause in the main contract. It is also possible to submit a dispute to arbitration with a separate agreement after the dispute has arisen.
An arbitration clause or agreement must be in writing. The LIAC-BBA recommends its Model Arbitration Clauses.
What are the costs of arbitration and
is it possible to estimate the costs beforehand?
The costs of arbitration are comprised of: the Administrative Fee of the LIAC-BBA, which includes the Filing Fee or Filing Fees paid in the case; the fees of the arbitral tribunal; and expenses, if any.
The LIAC-BBA determines the Administrative Fee and the fees of the arbitral tribunal in cases conducted under the LIAC-BBA rules based on the amount in dispute, which makes it possible to estimate the costs beforehand. The LIAC-BBA cost calculator provides the amount of the Administrative Fee and an estimate of the fees of the arbitral tribunal. The cost calculator thus assists parties in estimating the total costs of the arbitration without value added tax or the legal fees of the parties.
The Filing Fee in LIAC-BBA arbitrations is 750 USD.
The Filing Fee is non-refundable even if a claim is withdrawn or the arbitration is terminated on other grounds. The Filing Fee(s) paid in the case constitute a part of the Administrative Fee and shall be credited to the respective party’s share of the advance on costs fixed by the LIAC-BBA.
The LIAC-BBA will fix an advance on costs in all arbitrations conducted under its rules. The advance on costs is intended to cover the costs of the arbitration. Parties will be required to pay and advance on costs or their share thereof at the initial stages of the arbitration.
Can the LIAC-BBA be designated as appointing authority without subjecting the arbitration to the LIAC-BBA rules?
Parties may agree that the LIAC-BBA shall act as appointing authority even if the arbitration is not subjected to the LIAC-BBA rules. This means that the arbitration is conducted ad hoc. The fee of the LIAC-BBA for the appointment of the arbitral tribunal to an ad hoc case is USD 3 000. The fee is non-refundable.
