A U.S. court of appeals determined this week that cases against Lebanese commercial banks can be tried outside Lebanon, according to a decision seen by Reuters, paving the way for more cases by depositors seeking to unlock their frozen funds.
The court decision, issued on Dec. 15 in a case brought by Lebanese depositors against leading lender Bank Audi, overturned a lower district court’s decision that said Beirut courts had “exclusive jurisdiction” to try cases against Lebanese banks.
During Lebanon’s three-year financial collapse, banks have imposed tight controls on withdrawals in both U.S. dollars and the local currency, which has lost more than 90% of its value.
There was no immediate response from Bank Audi in Beirut to a request for comment filed outside business hours.
Jeffrey Rotenberg, a lawyer from DLA Piper representing Bank Audi in the case, said the decision was “non-precedential.”
“As to this case, there are several other threshold grounds for dismissal that we will continue to advance in the District Court,” Rotenberg told Reuters by email.
Abdelsater said the Raads wanted access to $17 million they had in savings at Bank Audi.
