A legal report published by The International Comparative Legal Guides revealed that the British Court of Appeal has rejected Libya’s appeal against the enforcement of an international arbitration award in favor of a British defense company. This ruling opens the door for the decision to be executed after nearly a decade-long dispute.
The report explained that the case involves General Dynamics United, the British branch of an American defense company, which secured an arbitration ruling allowing it to claim Libyan assets in the UK.
The dispute dates back to a contract signed between Libya and the company on May 5, 2008, for the supply of a tactical communications and information system worth £84 million. The contract included an arbitration clause governed by Swiss law, with the International Chamber of Commerce (ICC) designated as the dispute resolution body.
According to the report, an ICC arbitration panel based in Geneva awarded the company over £16 million in January 2016. In July 2018, the High Court in London issued an order to enforce the ruling, but Libya failed to pay the required amount.
In March 2024, General Dynamics United took further legal action in the UK courts, leading Judge Belling KC to issue a final order imposing charges on a Libyan state-owned property in North London, the report stated.
In November 2024, Libya appealed the ruling before a panel of Court of Appeal judges, including Lord Justice Lewison, Justice Phillips, and Justice Zacaroli. However, on February 19, 2025, the court rejected the appeal, upholding the previous decision.
According to the report, this ruling paves the way for seizure proceedings on Libyan assets in the UK unless a settlement is reached with the claimant company.
