Arbitration is preferred for resolution of commercial disputes. France is one of the world’s most favored seats for international arbitration because the new French law on international arbitration and French courts confirmed and reinforced its pro-...
Arbitration is preferred for resolution of commercial disputes. France is one of the world’s most favored seats for international arbitration because the new French law on international arbitration and French courts confirmed and reinforced its pro-arbitration legal system. The reforms were announced in 2011, representing France’s liberal approach to remain a leading seat for international arbitration, with a modern and effective legal regime and these changes also tend to make France a more arbitration-friendly jurisdiction.
French law has maintained the dualist approach which distinguishes between domestic and international arbitration and introduces very progressives provisions. Firstly, arbitration agreements in international arbitration are not subject to any mandatory formal requirements to accommodate investment arbitrations. Secondly, the President of the Paris Tribunal de grande instance shall rule even if the case has no connection with France. Thirdly, France law doesn’t automatically apply the principle of confidentiality to international arbitration to gratify the increasing demand for transparency in arbitration. Finally, the French law grants parties the right to waive the possibility of annulment proceeding, giving up their right to challenge the validity of an arbitral award.
The answer to whether an arbitral award that has been set aside at its place of origin can still be enforced in another jurisdiction remains much in dispute. That is a topic between Article Ⅴ(1)(e) and Article Ⅶ(1) of the New York Convention which takes two different views when an arbitral award has been set aside in the country in which the arbitration took place. In this behalf, French law and French courts have been always in favor in a highly coherent manner.
In general, liberal legislation and jurisprudence on international commercial arbitration would be encouraged. In this way, the French approach strenghens the international efficacy of arbitral award.
Firstly, this article reviews the major overhaul of the Code of Civil Procedure in 2011 which is in the main source of French law on international arbitration.
Secondly, this article looks into French judicial approach to enforcing arbitral awards set aside and compares the cases in the U.S.A. and in France.
This article intends not only to show the french approach but also to offer suggestions how to enhance the efficacy of international arbitral award, which would help to revise or understand the New York Convention and the Arbitration Act of Korea.