NY Supreme Court rejects lawsuit against Saudi businessman

By ARAB NEWS

Published: Jul 30, 2010 22:58 Updated: Jul 30, 2010 23:37

NEW YORK: The New York Supreme Court has thrown out a lawsuit against a Saudi businessman accused of stealing billions of dollars from a leading Kingdom entrepreneurial family on Thursday.

It said it was not convinced by the case presented by Ahmad Hamad Algosaibi and Brothers (AHAB) against Maan Al-Sanea, the owner and founder of the Saad Group. The court added that its decision was final and could not be appealed.

Presiding Judge Richard B Lowe III said the suit against the Saad Group was not based on evidence or proof and also suggested the case should be heard in Saudi Arabia or the UAE.

The court also rejected a petition from the National Bank of Kuwait against Saad Trading Contracting and Financial Services, filed in New York on Sept. 15 last year.

Judge Lowe said that the New York Supreme Court should not be the place to resolve the dispute, adding that such cases should be heard in a Middle East venue.

Algosaibi took action against Al-Sanea after the UAE's Al-Mashreq Bank filed a lawsuit claiming AHAB owed them $225 million in foreign exchange transactions, which could not be completed after the group reportedly posted disastrous results in the first quarter of 2009.

The Saad Group welcomed the decision, claiming that it had frequently requested to refer the case to Saudi courts, an argument rejected by Algosaibi's legal team.

AHAB's lawyer had also claimed the ruling gave the Saad Group "a car to escape". Judge Lowe responded that the group's car was "full of fuel".

The Supreme Court's verdict came just two days after a court in the Cayman Islands also suspended a lawsuit filed by Algosaibi against Al-Sanea.

The court said Saudi authorities should consider elements of the case and report back before a final decision could be made.

The court judge also rejected an appeal from AHAB to block the ruling.

This decision by the Cayman Islands and American courts is believed to highlight perceived deficiencies in the Saudi judicial system. ¬