Summary
Rosenblatt’s client, Mr. George Bitar, has succeeded in his claim in the English High Court against Bank of Beirut S.A.L. (the “Bank”). The court found that, in the circumstances, the Bank had an obligation to make international transfers of funds deposited in our client’s bank accounts. This significant decision will be of interest to depositors with funds held in Lebanese banks.
Rosenblatt’s client, Mr. Bitar (a UK national) commenced a claim in the English High Court in April 2021, seeking repayment of funds in two accounts with the Bank. Mr. Bitar claimed the Bank did not comply with his transfer instructions and was obliged to make international transfers of funds in his accounts to the UK. The claim arose in the context of the Lebanese financial crisis, which has seen the value of the Lebanese currency collapse and Lebanon default on its sovereign debt. The Bank defended the action, which was tried in July 2022.
On 15 August 2022, Mr. Justice Freedman gave judgment for Mr. Bitar.
In particular, the Court found that in the circumstances of this case, the Bank had a contractual obligation (based on construction of the terms of the relevant contracts, reinforced by Lebanese banking custom or practice) to make international transfers of funds. The Bank failed to make the transfers as instructed, such that Mr. Bitar is entitled to the remedy of specific performance, with interest.
In doing so, Freedman J rejected the Bank’s argument that there was no such contractual obligation. The Court also rejected the Bank’s argument that the financial crisis in Lebanon, the Bank’s desire to follow advice of the Association of Banks in Lebanon or to “avoid a rush on the banks” was an acceptable reason not to make the transfers.
Further, given the Bank was under an accrued obligation to make an international transfer, it was not assisted by a ‘tender and deposit’ procedure it had later sought to commence in Lebanon.
This Judge was assisted by an earlier decision of this Court (against different banks).
Danielle Carr, Partner at Rosenblatt said: “The High Court has recognised our client’s right in this case, to an international transfer of funds held in his accounts with Bank of Beirut S.A.L. in Lebanon. We expect this significant decision will be viewed with much interest, in England and abroad.”
The Rosenblatt team was led by Danielle Carr, supported by Luther Kisanga (Senior Associate), Georgina Fallows (Associate) and George Kestel (Solicitor). Rosenblatt instructed counsel James Cutress QC and Daniel Carall-Green of Fountain Court Chambers.
A copy of the Judgment can be found here: https://www.bailii.org/ew/cases/EWHC/QB/2022/2163.html
Rosenblatt has particular experience in dispute resolution, including banking and contractual disputes. For enquiries, please contact Danielle Carr (Danielle.Carr@rosenblatt.co.uk).
