The Commercial Court of Liberia
Enabling The Investment and Commerce Sectors
Presented by: Eva Mappy Morgan,
Resident Chief Judge
Commercial Court, Liberia
Liberia Chamber of Commerce Business Forum
Friday, 24 April 2015
Friday, 24 April 2015
Commercial Court Presentation to Chamber
of Commerce Business Forum
1
Overview Of The Commercial Court
The Commercial Court was established in September 2010 to promote a
favorable investment climate and instill confidence in the business
community. The long delays taken to hear cases involving business entities
frustrated the debt recovery efforts, contributing to the unwillingness of
these entities to extend credit opportunities. Thus, the need to have a
specialized and fast track court to deal with some of this workload especially
commercial issues that did not require jury trials became apparent. The
court’s statute, structure, processes, composition of judges, use of Liberia’s
first Commercial Code, its broad jurisdiction is simply remarkable. We are a
three judge panel court that sits individually or together depending on the
claim amount. We can inter alia require arbitration whether on not a term of
the contract; and review our intermediate rulings. We strive for fairness,
excellence and commitment to God and country in the performance of our
charge.
Friday, 24 April 2015
Commercial Court Presentation to Chamber
of Commerce Business Forum
2
Jurisdiction Article II
(Enlighten Businesses of
Court’s Jurisdiction)
The jurisdiction of the
Commercial Court is
extensive. The court can hear
cases on the listed subject
matters regardless of
residence or where the
dispute arose. Simply put, the
court can convene any place
and anywhere in Liberia to
decide matters. We are a
circuit-level specialized court
that sits monthly.
Friday, 24 April 2015
1)All civil commercial actions:
 Commercial claims of US$15,000.00 and
above;
 Admiralty: creation, registration, foreclosure
of maritime mortgages (Title 21 of LCLR);
 Sales and lease except realty;
 Creation, negotiation, enforcement of
negotiable
instruments
–rights
and
liabilities included;
 Foreclosure of mortgage (Commercial Code
Title 7);
 Agreements:
Agency,
partnership,
corporation or similar business relationship
–creation, performance; assignment and/or
modification;
 Appeal/decide application for enforcement
of final decisions of arbitral panel (Chapter 7
of Commercial Code);
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Jurisdictional Threshold
USD15,000.00 (Enlighten
Businesses of Court’s
Jurisdiction contd.)
2)Subject to USD15,000.00 threshold Commercial Court
has concurrent jurisdiction with Debt Court over actions to
obtain payments of debt (Forum Convenience).
Claims arising out of a
commercial
transaction for
USD15,000.00 or more
are cognizable before
the Court, nothing
less.
Friday, 24 April 2015
3) Actions cannot be moved from Debt Court to
Commercial Court (Forum Shopping).
4) Commercial Claims include:
 Formation and governance of commercial organization;
 Winding up/bankruptcy of a commercial enterprise;
 Restructuring;
 Contracts;
 Export/Import;
 Carriage of goods by sea, land, air pipelines;
 Exploration/development of mines, oil and gas;
 Insurance and reinsurance;
 Banking and Financial services;
 Business agencies and franchises;
 Commercial arbitration and other settlement awards;
 Intellectual property, patents, copyrights and
trademarks;
 Other claims of a commercial nature
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Procedures: Article III
(Understanding the Commercial
Court System)
There is endless narrative of
overcrowded dockets and unnecessary
delays in the courts. We believe inter
alia that this formed one of many
reasons for the establishment of a
Commercial Court. Additionally, the
frustrations of the commerce sectors
(lenders, borrower, businesses, etc.,)
created an urgency for a process which
would enable commerce and grow the
value of these industries. Of course,
the efficacy of the court is determined
by the processes and the capacity of
the judges to deliver. Similarly, you
must challenge and demand from us,
honesty, hard-work,
fair-play,
transparency, accountability, equality,
just to name a few. Listen, courts users
facilitate the honor’s code for judges
and lawyers when they call to
attention the good, the bad and ugly
in any system.
Friday, 24 April 2015
 Commercial Court actions are filed similar to civil
actions as provided for in the Liberia Code of Law
Revised or Rules of Commercial Court as may be
propagated;
 Built for promptness;
 Summary Judgment entertained only after pretrial conference;
 Three Judge Panel reviews exception to
interlocutory ruling of a judge.
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Appeals: Article IV
(Understanding the
Commercial Court System
Contd.)
Once more, the Commercial Court comes out
of the much heralded delays in our judicial
system. That said, the provision for deposit
of judgment sums in
interest bearing
accounts cures filing of multiple suits to
resolve a single issue. Here is a typical
scenario:
1) John Creditor loans Leo Debtor US1M.
Leo Debtor defaults, and John Creditor
takes him to the CC. John Creditor
prevails and is paid. Case close. 2) Leo
Debtor goes on appeal, judgment sum
is escrowed; John Creditor also prevails
on appeal. John Creditor is paid from
money in escrow. No problem.
2)
2) Assuming Leo Debtor prevails on
appeal, he then recovers judgment sum
in escrow. Clean cut.
The Hitch:
John Creditor prevails in the CC and is paid
(infuses funds into business) by Leo Debtor.
On appeal, Leo Debtor than prevails, ah ha…
where is the money? John Creditor now
becomes John Debtor as he is sued by Leo
Debtor, now Creditor, for his money since the
lower court judgment was overturned.
The point is obvious, escrowing of the
judgment benefits both creditor and debtor.
Friday, 24 April 2015
 Appeal from Final Judgment goes to
Appellant Court;
 Appeal not stay to enforcement of
judgment;
 Court to elect bank for deposit of
judgment sum pending disposition
of appeal;
 Full payment of judgment sum is
condition precedent for completion
of appeal;
 Filing appeal bond lies in court’s
discretion; and is exclusive of the
amount of judgment paid.
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Structure: Article V
(Understanding the
Commercial Court System)
This is a three judge panel court.
Despite its novelty, there is much
traffic from lawyers and we are
encouraged by this experience. We
dare say that some lawyers
appearing before us exhibit an
added degree of moral and
professional responsibility; also
offering suggestions for the
general good of court and court
users. Likewise, It is fair to say that
there is little reluctance from
lawyers even with our brisk
procedures and robust pre-trial
regime. We are hopeful that the
collaboration between bench and
bar will work to improve, sustain
and intensified the need for the
effective administration of justice
(commercial) in our judicial system.
Friday, 24 April 2015





Three Judge Panel Specialized Court;
Chief Judge administrative ahead;
En Banc decision by majority;
Case heard by one Judge;
Amount in excess of USD1M or LD
equivalent heard by Three Judge
Panel;
 Chief Judge writes Honorable Chief
Justice for Ad hoc Judge if a
Commercial Court Judge cannot sit
on a case and same requires hearing
of a full panel;
 Chief Judge assigned cases for
hearing in order of filing.
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Trial of cases: Article VII
(Understanding the
Commercial Court System
Contd.)
We are a court of record, and the
statute provides for a non-jury trial.
The problem regarding our jury system
is seen everyday in the types of verdict
given by individuals who are called to
perform
a
civic
responsibility.
Nevertheless, the question of jurors
inability to read and understand
complex fact patterns and issues, yet
charged with deliberations of such
matters is a challenge to our system. It
is against this background, and
borrowing from some regional and
international best practices that a nonjury proceeding was provided for in the
Court’s statute. Because the right to a
jury trial is guaranteed under our
Constitution, the non-jury proceedings
in the Commercial Court is ripe for
appellate interpretation. In fact, there
are now enquiries
on the
constitutionality of this section as
found in the above-mentioned statute.
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 Court of record
 Non-jury trial
 Conduct/order trial by
arbitration
 Request assistance of experts
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Powers: Article VI
(Key Issues in Protecting
Business Transactions)
The Statute creating the court and the
Commercial Code
have many
provisions to protect the rights of
businesses and others. These rights
inter alia include ; discretion of court
to submit parties to arbitration where
contract does not provide,
the
issuance of ex-parte application, the
provision on sales, finance leases,
finance lease registry,
negotiable
instruments, secured transactions,
mortgages, commercial arbitration,
fraudulent conveyance and conflict of
laws. From these provisions, one
cannot overstate that the Court was
not simply created to foster
investment, but primarily to provide
for the rights of the parties and the
assurances that Liberia is ready for the
global market place.
Friday, 24 April 2015
 Hear all claims within subject matter
jurisdiction;
 Submit parties to arbitration if
arbitration agreement or where
court determines arbitration can
lead to swift resolution;
 Property subject of secured
transaction to be seized upon
application of secured party;
 Grant application for attachment,
garnishment, sequestration
 Issue Ne Exeat Republic;
 Set appropriate filing fees;
Commercial Court Presentation to Chamber of
Commerce Business Forum
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Key Issues In Protecting
(Business Transactions
Contd.)
At this stage we are preaching to
the choir. This is a business
organization and many of the
things listed here are already a
matter of course for you. We
thought however that we
highlight a few just to trigger your
memory as to things you can do
to ensure continued success in
your businesses. Towards that
end, these are also some of what
you can implement in your
procedures to guarantee that you
prevail in litigation, or at least give
your adversary a run for her
money.
Friday, 24 April 2015
 Ensure a strict risk management regime;
 Exercise due diligence in all commercial
transactions;
 Document all transactions;
 Designate person for corporate
responsibility;
 Utilize collateral registry;
 Be current with laws, regulations regarding
your industry;
 Utilize Central Bank intra credit check
system;
 Contracts to reflect reasonable terms (i.e.
no arbitration in Turkey and enforcement of
award in Madagascar).
Commercial Court Presentation to Chamber
of Commerce Business Forum
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 Service oriented;


Selected Achievements

To ensure the effective administration
of commercial justice, we look to 
Statute creating the court, the Liberian 
Code of Laws Revised (1LCLR); the
Liberian Commercial Code (LCC); and 
other applicable laws. So, the pages on 
docketing cases as filed, speedy
determination of matters, pre-trial 
practice, ADR, enforcement are wellthumbed. We’ve introduced for the 
first time in this jurisdiction court’s 
open request for lawyers’ proposed
rulings. Concerted efforts on well- 
researched and well-written decisions

are our mantra. We also encourage
ADR, and a heightened level of 
proficiency during this process. We
have written a procedural manual, and 
with assistance of court users and 
relevant stake holders, submitted our
rules for approval by the Honorable 
Supreme Court.

Friday, 24 April 2015
Cases scheduled as filed;
Court driven assignments;
Cases heard within 30 days of filing;
Robust pretrial regime;
Resolution at pretrial stage where applicable;
Routine promotion of ADR;
Research oriented;
Predictability;
Introduction of proposed ruling;
Vigorous enforcements;
Data gathering;
Monitoring and evaluation;
Written procedure manual;
Publication of filing fees;
Issuance of receipts;
In-house staff training (cross-training);
Assistant Professors/LAGSL.
Commercial Court Presentation to Chamber
of Commerce Business Forum
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Lessons Learnt
In the 37 plus months of the court’s
existence, its chalked a lot of miles.
Some 300 hundred cases have been
filed and about 121 of those have
been settled. Enforcement of many
cases continue to elude us due in part
to the lack due diligence of financial
institutions in their lending policies.
Additional barriers to effective
administration lies in untrained
manpower, lack of resources to aid the
recovery process, etc., etc. Constant
requests
for
adjournments
by
counsels; and the granting of such by
court; Tardiness of lawyers and
witness; tardiness of judges; limited
knowledge of courts’ statute on widebreath of jurisdiction; ensuring good
administration of courts’ limited
resources, and commanding proper
conduct (ethics and decorum) of
judges, counsels, and litigants.
Friday, 24 April 2015
 Financial institutions not diligent in granting
credit facilities;
 Allegations of predatory lending hampers service
of process and enforcement of judgment;
 Litigants complaint on compound interest;
 Unprepared for fast-tracking of cases;
 Tightened security on files;
 Monitor personnel to ensure integrity of court
processes and records;
 Cap adjournment requests;
 Court driven assignment expedites process;
 Reprimand (Fines) of lawyer for tardiness,
conduct unbecoming etc., advances matters and
generates revenue.
Commercial Court Presentation to Chamber
of Commerce Business Forum
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 Non-automation;
 Ex-parte application difficult to enforce;
Selected Challenges
 Constitutional query on payment of judgment
sum as condition precedent to completion of
Budgetary constraints;
appeal & Non-Jury trial;
unnecessary delays due to
 Pre-trial of matters over 1M by one judge
numerous motion
hearings, legislative will in  Poor credit/risk assessment & portfolio
management by lending institutions;
passing proposed
insolvency bill, limited
 Difficulty in enforcement of judgment;
continued legal education  Proposed Insolvency statute pending;
on commercial statute,
 Lack of adequate resources, internet
code and other best
connectivity, work space;
commercial practices by
 Court Users Committee not active;
judges and lawyers all
 Continued legal education/ training of judges
work prejudice on the
inadequate;
court’s mandate for fair,
effective and speedy trials.  Staff competency poor, training limited;
 Salary, motivations for Judges & staff
Nevertheless, we march
insufficient.
on!
Friday, 24 April 2015
Commercial Court Presentation to Chamber
of Commerce Business Forum
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COMMERCIAL COURT CASE
STATISTICS
Nov 2011-March 2015
Case Statistics
 Cases Filed =299
 Resolved at Pre-trial Conference
level Enforcement ongoing =96
 Resolved at Trial level Enforcement
ongoing = 7
 Retired from docket due to
inactivity = 60
 Cases ongoing = 80
 Cases closed due to withdrawal or
Motion =38
 Resolution W/in 30-60 days = 96
 Resolution W/in 60-90 days = 18
 Resolution 90 days + = 0
Total # of
Cases Resolved
13%
40%
20%
Total # of
Cases Retired
27%
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Total # of
Cases on-going
Commercial Court Presentation to Chamber
of Commerce Business Forum
Total # of
Cases
W/Drawn
14
Judges Caseload Statistics
Nov 2011-March 2015
 Chief Judge Eva Mappy Morgan Assigned = 115, Resolved=60,
Pending=25, In Enforcement=30
 Judge Chan-Chan A. Paegar Assigned=85, Resolved=35,
Pending=30, In Enforcement=20
 Judge Richard S. Klah Sr. Assigned=83, Resolved=31,
Pending=30, In Enforcement=22
 Enbanc – Assigned=16,
Resolved=7, Pending=5, In
Enforcement=4
Friday, 24 April 2015
140
120
100
80
60
Assigned
Resolved
40
Pending
20
0
Chief Judge Judge
Judge
Eva Mappy Chan-chan Richard S.
Morgan A. Paegar Klah, Sr.
Commercial Court Presentation to Chamber
of Commerce Business Forum
Enbanc
15
Q &A
We hope to get from this
session your understanding of
the court, and its assistance
or not in helping to restore
confidence in the commerce
and other sectors over which
it has jurisdiction. It is our
plan to reactivate the Users’
Committee so that we gain
valuable feedback on our
processes, and how if any we
can continue to work for the
fair
and
prompt
determination of matters filed
before court.
Friday, 24 April 2015
Commercial Court Presentation to Chamber
of Commerce Business Forum
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