Mr Justice Picken today handed down judgment in the case of Manoukian v (1) Societe Generale de Banque du Liban and (2) Bank Audi - one of The Lawyer’s 'Top 20 Cases of 2022'. This case was concerned with the financial crisis that has impacted Lebanon since October 2019. Since that time, banks in Lebanon have refused to accede to demands by customers for international transfers of funds standing to the credit of their accounts for fear of causing a run on the banks. The issue raised by this case was whether the banks were entitled to do so, in circumstances where the Lebanese Parliament has not, as yet, introduced any capital control laws. The learned Judge held that the banks were not entitled to do so on two bases. First, on a true construction of the banking contracts which were governed by Lebanese law, Mr Manoukian had a contractual right to insist on an international transfer. Secondly, there was an established custom recognised by Lebanese law that permitted customers to insist on international transfers save in limited circumstances which did not apply. This case will be of interest to those affected by the Lebanese financial crisis and to banking law practitioners in Lebanon and in other jurisdictions with similar civil and commercial codes. This is the second case related to the Lebanese financial crisis to have been dealt with by the Queen’s Bench Division in London. The first case, Khalifeh v Blom Bank [2021] EWHC 3399 (QB), having been decided by Mr Justice Foxton in December 2021.
Link to the judgment can be found here.
Daniel Toledano Q.C. acted for Mr Manoukian, leading Bobby Friedman and Caspar Bartscherer of Wilberforce Chambers, instructed by BCLP.