In the present case, the plaintiff was denying as a ground of avoidance the incompetence of the judicial courts, based on an arbitration clause.
The Supreme Court rejected the ground, deciding that the application of the Lebanese decree-law No 34 of 1965, as subsequently amended, related to exclusive agency agreements is mandatory for the protection of the (Lebanese) agents’ rights.
Therefore, the application of article 5 of the decree-law (retaining the competence of the Court of the place where the agent operates) cannot be derogated by an arbitration clause.
Fady Nammour, IDI Country Expert for Lebanon.
