Libya’s Supreme Judicial Council’s Litigation Department revealed two recent court rulings in favour of the Libyan state. Two European courts dismissed lawsuits that sought substantial financial compensation from the Libyan authorities.
The statement said that the Libyan State secured victory in the Court of Appeal in Paris, against the Turkish company “Gorch.” The court invalidated a claim filed by the Turkish company demanding €19 million Euros in compensation for its business losses in Libya.
The Litigation Department disclosed that the court ordered the Turkish company to pay legal fees amounting to €1.4 million Euros, in addition to legal expenses to be paid to Libya totalling €20,000 Euros.
It’s noteworthy that the Turkish company initiated an arbitration proceeding in 2021, before the International Chamber of Commerce in Paris against the Libyan state. This action was based on the bilateral treaty between Libya and Turkey, aimed at promoting and protecting investments between the two countries.
Similarly, the Civil Court in Rome annulled a performance order that compelled Libya to pay €560,000 Euros to the Italian civil association, Valterno.
The court, in a session held last year, also obligated the Italian association to cover expert fees and legal expenses, sparing the Libyan state from paying the ordered amount.
In November, the Libyan Investment Authority (LIA), Libya’s state-owned sovereign wealth fund, achieved a significant legal milestone by lifting the last of the judicial freezes on its assets in France.
This decisive success marks the end of a protracted legal struggle. It represents the first time since the tumultuous events of 2013, that the LIA’s assets in France have been completely freed from legal constraints.
Established in 2006, the LIA was created to manage Libya’s oil revenues, and diversify the national economy. However, following the 2011 Libyan revolution and the ensuing political upheaval, the LIA found itself embroiled in international legal battles. Numerous entities and corporations globally targeted the LIA’s assets, claiming them for alleged debts linked to the Libyan state. This resulted in a series of asset freezes that threatened the fund’s global investment portfolio.