Cross-border disputes: Paris is now more attractive as an international jurisdiction
On 07 February 2018, in the presence of the Minister of Justice, agreement protocols were signed between the Paris Court of Appeal, the Paris Commercial Court and the Paris Bar for the creation of a Chamber dedicated to the resolution of international disputes within the Paris Court of Appeal.
The objective is to enable economic operators to benefit from a jurisdictional system adapted to the specific requirements of international trade, and thus at the same time to promote the attractiveness of the Paris Courts in the resolution of international disputes. In general terms, the aim is to make Paris an important place in the resolution of international disputes relating to transport contracts, contracts regarding financial instruments, or in matters concerning termination of established commercial relations.
This initiative is not new, nor specific to France, since other member States of the European Union are already in the starting blocks. The report drawn up on 03 May 2017 by the High Legal Committee of the Paris Financial Center, under the direction of Guy Canivet (hereinafter the “Canivet Report”), specifies in this respect that the rise of the French Commercial Courts to a sufficient level of international competitiveness is justified by Brexit, since the latter could call into question the preponderance of the London market in the resolution of international commercial disputes.
This initiative is also explained by the fact that to date many international trade contracts are written in English and are governed by English law. Brexit, while not necessarily challenging that preponderance, may compel parties to seek another forum for resolving their disputes.
Paris now offers them this opportunity: the jurisdiction of the Chamber may thus result from a contractual stipulation conferring jurisdiction to the Courts located within the jurisdiction of the Paris Court of Appeal.
It is also interesting to note that before this new Chamber, a large place will be left to the use of the English language and testimonial proof. In addition, the Court may apply any foreign rule of law applicable to the case presented before it such as common law, in accordance with the recommendations issued by the Canivet Report. The attractiveness of the Paris Courts is therefore reinforced.
The use of the English language in French Courts is however not without difficulties, given that since the Villers-Cotterêts Ordinances of 1539, the use of French is mandatory in national Courts. Therefore, before this new Chamber, the written pleadings (summons, submissions, and judgments) must be drafted in French but may nevertheless be accompanied by a translation into a language chosen by the parties. However, parts of the written pleadings may be produced in English without translation. As far as the oral pleadings are concerned, they must be in French, but the parties, the witnesses or the experts, if they are foreigners, may be authorised to speak in English if they wish, or in another language, but must be accompanied by an interpreter.
It should be noted that all these elements also apply to the Paris Commercial Court specific Chamber specialising in transnational litigation, which merged in 2015 with the Chamber specialising in European Union law.
In order to be as attractive as possible, this new Chamber will necessarily have to be composed of judges proficient in the English language, specially qualified in international trade, and recognised for their ability to investigate and judge complex disputes in commercial, economic and financial matters.
Paris, already known as a center for arbitration, particularly due to the presence since 1923 of the International Court of Arbitration of the International Chamber of Commerce (ICC), intends to strongly compete with Brussels, Amsterdam, Frankfurt and Dublin, which are themselves taking similar measures to attract economic operators by offering them a suitable resolution location for transnational disputes.
The activities of this new Chamber dedicated to international litigation will start on 01 March 2018.
