The warranty for hidden defects passed on to the sub-purchaser of the item sold can be invoked against the original seller, even if the sub-purchaser was aware of the defect
In a decision dated 16 October 2024, the French Supreme Court (Cour de cassation) ruled on the scope of the warranty for hidden defects in a chain of contracts (Articles 1641 and 1642 of the French Civil Code). Under the terms of these articles, “[t]he seller is bound by the warranty for latent defects in the thing […]
The arbitral tribunal has discretionary power in the choice of methods for assessing damages
In a ruling handed down on 9 October 2024, the French Supreme Court (Cour de cassation) reiterated the arbitrators’ discretionary power to choose the methods for assessing damages, in compliance with the principle of contradiction. In this case, the dispute was between Swiss Re Direct Investments and several Ivorian parties, including Manzima Holding and Manzi Finances. It […]
The stay of execution of an arbitral award resulting from the violation of the principle of equality of unsecured creditors
In a ruling dated 3 October 2024, the Paris Court of Appeal ordered a stay of execution of an arbitration award, due to the risk of serious prejudice to the rights of the parties (article 1526 paragraph 2 of the French Civil Procedure Code). The case involved an Italian construction company (Astaris) and the Georgian Road Authority. […]
Notification procedures in arbitration proceedings and respect for the adversarial principle
In a ruling dated 1st October 2024, the Paris Court of Appeal ruled on the conditions for compliance with the adversarial principle in the enforcement of an arbitration award against Libya. In this case, the dispute was between the Tunisian company Siba Plast and the Libyan state. Siba Plast had obtained an arbitration award on 28 November 2014, condemning […]
The option of territorial jurisdiction for investigative in futurum measures applies even when the expertise concerns an immovable asset
In a ruling handed down on 24 October 2024, the Paris Court of Appeal reaffirmed the option of territorial jurisdiction for in futurum investigative measures concerning real estate. In the case at hand, the President of the Paris Judicial Court had declined jurisdiction to order an expert appointment of an immovable asset located outside his […]
The Micula case: payment of damages in execution of an arbitration award does constitute State aid
The judgment of the Court of the European Union (“TEU”) of 2 October 2024 in the Micula case concerns the compatibility with EU law of compensation awarded following an arbitration award against Romania. The dispute stems from Romania’s repeal in 2005 of a tax incentive scheme for investors in certain disadvantaged regions. Several companies in […]
The necessity of directing claims against the absorbing company, intervening in proceedings initially involving the absorbed company
In a ruling handed down on September 18, 2024, the French Supreme Court reiterated that, while the intervention of the absorbing company in the course of proceedings, in the event of a merger-absorption, makes it possible to set aside the plea of inadmissibility based on the disappearance of the absorbed company, it does not exonerate […]
Fraudulent concealment always excuses the error it has caused
In a ruling handed down on September 18, 2024, the French Supreme Court ruled that the seller’s fraudulent concealment of the target company’s financial situation always constitutes an excuse for the transferee’s error in failing to obtain sufficient information on the company’s financial situation. In the case at hand, after acquiring the entire capital of […]
The Paris Court of Appeal clarifies the limits of the assignee’s rights in the event of an action to set aside an arbitral award or an appeal against an exequatur order
A noteworthy ruling by the Paris Court of Appeal on September 10, 2024 clarifies the scope of an transfer with regard to the assignee’s rights to request the annulment of an award or to appeal against the exequatur order. The facts were as follows. In the case at hand, following the termination of a concession […]
The Arbitral tribunal’s refusal to order production of documents does not in itself justify setting aside an award
In a ruling handed down on September 18, 2024, the French Supreme Court continues to build on its jurisprudence on the control of infringement of international public policy and the right of defense in arbitration proceedings. A dispute arose between the Italian company Green Network SPA and the Swiss energy market leader Alpiq, concerning the […]