We represented Perkins Engines Company Ltd, a subsidiary of Caterpillar Inc., in one of the most high-profile and high-value disputes locally and regionally, involving a claim exceeding US$100 million.
The case arose from the termination of a long-standing distribution agreement with a former Lebanese distributor, appointed in 1990, and revolved around a claim of alleged abusive termination brought before the Court of First Instance of Sidon. The distributor had asserted losses well in excess of US$100 million.
This matter reflects a rare convergence of local litigation, international arbitration, and English court proceedings, and showcases our Dispute Resolution department’s ability to handle cross-border, multi-forum disputes of significant commercial and legal complexity.
Our role was pivotal not only in leading the Lebanese litigation, but also in acting as local counsel and strategic legal advisor to Mayer Brown (London) in connected proceedings, including anti-suit injunction (ASI) proceedings before the English High Court. These proceedings were initiated by Perkins in response to the Lebanese litigation and resulted in the successful issuance of an ASI against the distributor, preventing him from continuing his claims in Lebanon in breach of the arbitration clause. The English judgment became case law in the UK and prominently referenced the expert testimony submitted by our Managing Partner, Jean Baroudi, on Lebanese commercial agency law and procedural mechanisms. His legal analysis was instrumental in securing the injunction and influencing the judgment's rationale.
Following the ASI decision, the distributor initiated arbitration proceedings in the UK pursuant to the arbitration clause embedded in the distribution agreement. We assisted Mayer Brown in these arbitration proceedings, providing ongoing legal guidance under Lebanese law, particularly regarding prior disputes between the distributor and other agents, the structure and application of Lebanese corporate and agency law, and procedural considerations relevant to the enforcement of awards and anti-suit orders locally.
This matter underscores Baroudi & Associates’ capacity to handle high-value sensitive litigation before Lebanese courts, work seamlessly with international counsel on landmark foreign court rulings, provide authoritative expertise on Lebanese law in cross-border disputes, and navigate the intersection of litigation, arbitration, and injunctive relief across jurisdictions. It is a prime example of our Litigation and Dispute Resolution Team’s ability to advise global corporations on multi-jurisdictional risk, influence foreign judicial reasoning through expert input, and lead the Lebanese strategy in matters of significant legal and commercial importance.