Nest Investments Holding Lebanon S.A.L. & Ors v Deloitte & Touche (M.E.) & Anor [2023] DIFC CA 012 (09 February 2023)

Nest Investments Holding Lebanon S.A.L. & Ors v Deloitte & Touche (M.E.) & Anor [2023] DIFC CA 012 (09 February 2023)

The Court of Appeal held that Lebanese law governed the limitation period, that all claims against the auditors fell within the five-year limitation period under Article 178 LCC, and that the period commenced from the date the audit report was presented to the general assembly. The claimants' claims were therefore statute barred.

Citation
[2023] DIFC CA 012
Parties
Claimant/appellant: Nest Investments Holding Lebanon S.A.L.; Claimant/appellant: Jordanian Expatriates Investment Holding Company; Claimant/appellant: Ghazi Kamel Abdul Rahman Abu Nahl; Claimant/appellant: Jamal Kamel Rahman Abu Nahl; Claimant/appellant: Trust Compass Insurance S.A.L.; Claimant/appellant: Trust International Insurance Company (Cyprus) Limited; Claimant/appellant: His Excellency Sheikh Nasser Bin Ali Bin Saud Al Thani; Claimant/appellant: Fadi Ghazi Abu Nahl; Claimant/appellant: Hamad Ghazi Abu Nahl; Claimant/appellant: Kamel Ghazi Abu Nahl; Defendant/respondent: Deloitte & Touche (M. E.); Defendant/respondent: Joseph El Fadl
Jurisdiction
United Arab Emirates
Judgment Date
09 February 2023
Procedural Posture
Appeal / Judgment on Appeal From Preliminary Issues Decision
Outcome
Appeal dismissed
Legal Topics
Auditor Liability, Limitation Periods, Shareholder Claims, Foreign Law Application, Recoverability of Loss
Commercial Law Company Law Conflict of Laws Limitation of Actions Auditor Liability Limitation Periods Shareholder Claims Foreign Law Application +1 more

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Parties

Nest Investments Holding Lebanon S.A.L.

Claimant/appellant

Jordanian Expatriates Investment Holding Company

Claimant/appellant

Ghazi Kamel Abdul Rahman Abu Nahl

Claimant/appellant

Jamal Kamel Rahman Abu Nahl

Claimant/appellant

Trust Compass Insurance S.A.L.

Claimant/appellant

Trust International Insurance Company (Cyprus) Limited

Claimant/appellant

His Excellency Sheikh Nasser Bin Ali Bin Saud Al Thani

Claimant/appellant

Fadi Ghazi Abu Nahl

Claimant/appellant

Hamad Ghazi Abu Nahl

Claimant/appellant

Kamel Ghazi Abu Nahl

Claimant/appellant

Deloitte & Touche (M. E.)

Defendant/respondent

Joseph El Fadl

Defendant/respondent

Procedural Posture

Appeal / Judgment on Appeal From Preliminary Issues Decision

Legal Issues

  1. 1 Whether the claimants' claims against auditors are time-barred under Lebanese law
  2. 2 Whether all claims fall within the five-year limitation period under Article 178 LCC
  3. 3 Whether the limitation period start date was correctly determined

Ratio Decidendi

The Court of Appeal held that Lebanese law governed the limitation period, that all claims against the auditors fell within the five-year limitation period under Article 178 LCC, and that the period commenced from the date the audit report was presented to the general assembly. The claimants' claims were therefore statute barred.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The Appellants to pay the Respondents’ costs of the appeal to be taxed, if not agreed, provided that no costs shall be payable in relation to the recoverability issue.