Lawsuits against Saudi firms thrown out in US

New York:  Lawsuits filed in New York against Saudi Arabian billionaire Ma'an Al Sanea and members of the kingdom's Algosaibi family were dismissed by a state judge who said the litigation looked completely out of place in the US.

New York state supreme court justice Richard Lowe said in Manhattan the people named in the lawsuits were unable to travel to the US and most of the witnesses continued to live abroad. The United Arab Emirates "is the more appropriate forum for determination of the primary actions", the judge said in a decision dated July 26.

Mashreqbank had sued Ahmad Hamad Algosaibi & Bros. Co., a Saudi Arabian company whose general partners are members of the Algosaibi family, after transferring $150 million (Dh550.8 million) to Algosaibi's New York bank account. There is no dispute that Algosaibi was supposed to wire the bank the equivalent sum in Saudi currency and didn't, according to the ruling. Algosaibi countersued the bank.

In a related complaint, Algosaibi sued Al Sanea and Awal Bank, owned by Al Sanea, accusing Al Sanea of siphoning the Algosaibi funds transferred from Mashreqbank. The complaint alleges that Al Sanea directed the funds be moved to an account that he controlled, according to a summary of the litigation in the judge's ruling.

Lowe threw out claims against Al Sanea, Awal Bank, Ahmad Hamad Algosaibi & Bros. and members of the Algosaibi family for improper venue.

Robert Serio, a lawyer for Al Sanea, said his client was pleased with the decision.

"Mr. Al Sanea is gratified by Justice Lowe's ruling and the court's recognition that the judicial processes available to the parties in the Kingdom of Saudi Arabia are fully adequate to resolve any disputes," he said.

Weighing appeal

Eric Lewis, a lawyer for Algosaibi, said in a statement the decision is wrong and that the company has "strong grounds" for an appeal.

The Algosaibi family accused Al Sanea of misappropriating $9.2 billion to fund his Saad Group of companies, according to a lawsuit filed in the Cayman Islands that a judge recently ruled may be more appropriate in Saudi Arabia.

Mashreqbank spokeswoman Jessica Anderson said in a statement that Lowe's decision is consistent with the bank's position once it realised there were no Algosaibi assets it could pursue in the US.

The bank will "continue to aggressively pursue those claims" in the UAE, she said.

The cases are Mashreqbank PSC vs Ahmad Hamad Algosaibi & Bros. Co., 601650/2009; Ahmad Hamad Al Gosaibi & Bros. Co. vs Al Sanea, 590643/2009; Mashreqbank PSC vs Algosaibi, 602171/2009; and Al Ahli Bank of Kuwait KSC vs Al Sanea, 602847/2009; New York Supreme Court, New York County (Manhattan).