The COVID-19 pandemic has undeniably disrupted the performance of contracts. Although the Paris Commercial Court has ruled the pandemic to be a force majeure event in a commercial contract, this characterisation may not be retained in all situations. This article provides helpful tips to keep in mind when analysing a contractual situation, in light of French law specificities that might be unknown to foreign companies or counsel involved in arbitration proceedings to which French law applies.
The First Civil Chamber of the Court of Cassation recently overruled a Paris Court of Appeal decision and determined that there was no basis for the argument that Antrix Corporation Ltd had not made certain procedural objections during arbitration and therefore could not raise them in enforcement proceedings. The decision raises interesting questions about the nature of the 'waiver' contemplated in the Code of Civil Procedure.
The International Chamber of the Paris Court of Appeal recently rendered five decisions on setting-aside proceedings against five awards issued in the same arbitration. It was alleged that the tribunal had been improperly constituted as a party-appointed arbitrator had failed to disclose information that affected his independence and impartiality. Although this decision confirms the existing jurisprudence, the question of the exact scope of arbitrators' duty to disclose remains.
The Paris Court of Appeal recently clarified the scope of application of Article 1466 of the Code of Civil Procedure and for the first time confirmed that Article 1466 can also limit a party's ability to seek annulment based on a variety of arguments, whether relating to procedural irregularities or otherwise, that could have been raised in the arbitration.
The Court of Cassation recently confirmed the quasi-absolute priority given to arbitral tribunals to determine questions relating to their jurisdiction, even when this involves rules of French public order. Although this is well established in French case law, it is the first time that the court has upheld an arbitration clause that conferred on a tribunal the statutory power to value shares in lieu of a party-appointed or judicially appointed expert.