WASHINGTON-A federal judge in Detroit has ordered the government of Lebanon to pay a Michigan telecom firm $420 million for preventing it from bidding on a mobile-phone contract in that country.
According to court documents, two companies-Cellis and LibanCell-launched GSM mobile-phone systems in Lebanon in 1994. However, in August 2002, Lebanon terminated contracts with the two firms and ownership of the two GSM networks were transferred to the Lebanese government.
While the Lebanese government contemplated the next step, it paid Cellis and LibanCell $7.5 million per month to each company to manage the two GSM networks. The Ministry of Telecommunications in December 2002 said it planned to auction both wireless systems. Each wireless system has a 20-year license.
American Telecom Co. L.L.C., the Michigan firm, paid $25,000 as part of the pre-qualification requirements. But the Lebanese government said Issam Beydoun, principal of ATC, was not qualified to compete for a contract.
The Lebanese government did not respond to the lawsuit.
As a consequence, U.S. District Judge Nancy Edmunds ordered the Republic of Lebanon to pay Beydoun, reportedly a Lebanese immigrant, $420 million. Beydoun is represented by the Morganroth & Morganroth law firm and attorney Sheldon Miller, the lead lawyers in six brain-cancer suits against the U.S. cell-phone industry.
The Lebanese Embassy did not return a call and an e-mail requesting comment.
A Morganroth lawyer is quoted as saying the firm could attempt to freeze Lebanese government assets in the United States if the judgment is not paid.
The ruling comes at a politically delicate time when the Bush administration is pressing Syria to remove its troops from Lebanon and when anti-American sentiment remains strong in the Middle East.
