PRESSR: Arbitration award worth more than $8 million in relation to the Beirut Marriott Hotel
Lebanon - Real estate investor Ziad Fakhri obtained an arbitration award worth more than $8 million as part of arbitration proceedings in Lebanon against a company owned by Mr. Sobeih Al-Masry, Chairman of the Arab Bank Group, regarding conspiracy and collusion with Marriott International (“Marriott”).
This follows criminal complaints filed against persons associated with PricewaterhouseCoopers and First National Bank (Lebanon) for fraudulent acts and obstruction of justice in connection with the long-running dispute between Marriott and Jinnah Development S.A.L., which was previously owned by Mr. Ziad. Fakhri and his father, the late Saqr Fakhri, before Sobeih Al-Masry acquired the aforementioned company during the year 2009 by Chiyah Holding S.A.L.
The sole arbitrator, Dr. Rayyan Assaf, found that an amount of $3.2 million paid by Marriott to a bank account called “Jnah Development Arbitration Case” opened with First National Bank S.A.L. constituted a fraudulent payment, as the said account did not belong to Jinnah Development S.A.L. Ml. The allegations were based on newly discovered evidence during the year 2021 showing that the account opened with First National Bank did not belong to Jnah Development SAL and that it was used to pay bribes to witnesses in order to testify against Mr. Fakhri. The arbitrator's decision also awarded Mr. Fakhri about $2.5 million in relation to the breach of trust, in addition to the arbitration decision including reasons in favor of Mr. Fakhri in relation to the bribe allegedly issued by Marriott.
At the time, the testimony of witnesses prevented Mr. Ziad Fakhry from pursuing any claim against Marriott regarding its contractual violations and mismanagement of the Marriott Hotel in Beirut, a first-class, full-service, international luxury hotel that Marriott has managed since 1994.
Commenting, Mr. Ziad Fakhry said: “Following this arbitration award and the recent ruling issued by the Lebanese courts, I am pleased to be one step closer to finally seeing a fair resolution to this case that began with Marriott’s breaches of contract and fraudulent actions 20 years ago. I look forward to “I am filing my full case next month in Paris, highlighting the fraudulent actions that prevented me from pursuing a legitimate claim against Marriott International Hotels and related persons.”
In November 2023, the arbitral tribunal at the International Chamber of Commerce in Paris considered the request for a retrial in arbitration involving more than $120 million.
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