Proceedings subsequent to issuance of award
Interpretation and correction of awards
Does the arbitral tribunal have the power to correct or interpret an award on its own or at the parties’ initiative? What time limits apply?
Parties may request arbitral tribunals to interpret an award, correct clerical errors or make an additional award where the tribunal failed to decide on a claim (article 1485 CCP). The request shall be presented within three months of the award’s notification (article 1486 CCP). The reconstituted arbitral tribunal shall rule exclusively over the rectification request without altering the meaning of the award.
Article 36 of the ICC Rules allows the arbitral tribunal to correct clerical errors either within 30 days of the date of the award ‘on its own initiative’ or when requested by parties within 30 days of the award’s notification.
Challenge of awards
How and on what grounds can awards be challenged and set aside?
Arbitral awards may be subject to challenge before French courts (articles 1491 and 1519 CCP). Parties may waive their right to challenge international awards issued in France by means of a petition to set aside (article 1522 CCP), although they will always be able to appeal enforcement orders.
The grounds for the annulment of awards are strictly limited (articles 1492 and 1520 CCP):
the arbitral tribunal wrongly upheld or declined jurisdiction: French courts exercise full control over arbitral tribunals’ decisions on jurisdiction (Abela, Cass, 1st Civ, 6 October 2010, No. 08-20.563);
improper constitution of the arbitral tribunal (Paris, 14 October 2014);
arbitrators failed to comply with their mandate;
violation of due process (Paris, 2 April 2013, Blow Pack);
recognition or enforcement of the award would be contrary to international public policy; and
a failure to state reasons or indicate the date of issuance of the award, the names or signatures of the arbitrators, or the award was not made by majority decision (for domestic awards).
Recently, the Court of Cassation ruled that the plea that one party does not have a right of action is a plea of non-admissibility that does not constitute a ground for the annulment of awards under article 1520 CCP (Cass, 1st Civ, 11 July 2019, No. 17-20.423).
Levels of appeal
How many levels of appeal are there? How long does it generally take until a challenge is decided at each level? Approximately what costs are incurred at each level? How are costs apportioned among the parties?
Unless otherwise agreed by the parties, domestic awards are not subject to appeal. If so, the appeal must be brought before the court of appeal that has territorial jurisdiction within one month of the award’s notification (articles 1489-1490 and 1494 CCP).
Parties may request the annulment of domestic and international awards rendered in France before a competent court of appeal within a month of the award notification (articles 1491 and 1519 CCP). The Court of Cassation may review annulment decisions. Proceedings before those courts usually last more than a year.
Costs usually comprise administrative and translation costs, and attorneys’ fees.
Recognition and enforcement
What requirements exist for recognition and enforcement of domestic and foreign awards, what grounds exist for refusing recognition and enforcement, and what is the procedure?
For the enforcement of international awards, parties must submit copies or originals of the award, and of the arbitration agreement along with their translations if the documents are not in French (articles 1515 and 1516 CCP).
For international awards rendered in France, requests must be brought before the tribunal de grande instance (TGI) having territorial jurisdiction, and before the TGI of Paris for foreign awards (article 1516 CCP).
Administrative courts may be competent for the exequatur of awards issued in France regarding disputes concerning public tenders between a French public entity and a foreign legal person executed in France where commercial interests are at stake, if ‘the underlying contract to the dispute on which the arbitrator ruled is subject to imperative rules of French public law related to the occupation of the public domain or those related the public order’ (Fosmax, Tribunal des Conflits, 24 April 2017, State Council, 9 November 2016).
If the authenticity of an award is demonstrated, and the recognition and enforcement thereof are not manifestly contrary to international public policy, the execution order is granted (article 1514 CCP). If the order is denied, such a decision shall state reasons for such denial (article 1517 CCP).
Orders denying enforcement and recognition may be appealed within a month of their notification (article 1523 CCP). Enforcement orders of foreign awards may be appealed on the grounds for setting aside international awards issued in France (articles 1520 and 1525 CPC).
Orders granting the recognition and enforcement of an international award issued in France may not be appealed (article 1524 CCP). Parties may nonetheless petition to set aside the award.
Where parties have explicitly waived their right to apply for annulment, they may appeal the enforcement order within a month after signing, on the grounds of setting aside an international award rendered in France (articles 1522 and 1524 CCP). Once the enforcement order is issued, the interested party may seek the forced execution of the award, which may not be suspended by a petition to set aside the award or an appeal against the enforcement order (article 1526 CPC).
Time limits for enforcement of arbitral awards
Is there a limitation period for the enforcement of arbitral awards?
The CCP sets no specific statute of limitation for the enforcement of an arbitral award, and case law has not decided this question.
Enforcement of foreign awards
What is the attitude of domestic courts to the enforcement of foreign awards set aside by the courts at the place of arbitration?
International awards are deemed to be disconnected from any domestic legal system. They may be enforced despite their annulment at the seat of arbitration (Norsolor, Cass, 1st Civ, 9 October 1984; Putrabali, 1st Civ, 29 June 2007). Courts verify whether foreign awards comply with the requirements for their enforcement. The grounds for the denial of enforcement of foreign awards are the same as those provided for the annulment of foreign awards (article 1525 CCP; see question 45).
Regarding the enforcement of arbitral awards against states, the Court of Cassation confirmed its 2013 jurisprudence (Cass, 1st Civ, 28 March 2013, No. 10-25.928) and the new provisions of the French Code of enforcement proceedings issued from the 2016 reform called Law Sapin II stating that, to attach a state’s diplomatic assets, not only is an express waiver of its immunity in writing necessary, but it also needs to refer to a list of assets or a category of assets falling within the scope of such waiver. (Commisimpex, Cass, 1st Civ, 10 January 2018, No. 16-22.494).
Enforcement of orders by emergency arbitrators
Does your domestic arbitration legislation, case law or the rules of domestic arbitration institutions provide for the enforcement of orders by emergency arbitrators?
French law does not contain provisions on emergency arbitrators. When agreeing on the ICC Rules, parties undertake to comply with orders rendered by ICC emergency arbitrators. Their enforcement before domestic courts is uncertain, however. Though arbitrators may not enforce their orders, they may be able to attach daily penalties thereto (article 1468 CCP). The arbitrators subsequently seized of the dispute may also draw inferences from the non-execution of an emergency arbitrator’s order.
Cost of enforcement
What costs are incurred in enforcing awards?
Parties may recover some of the costs incurred in enforcing awards, such as administrative costs. Other costs may not be recoverable, such as attorneys’ fees and the costs incurred in the tracing of assets.
By William Kirtley and Zuzana Vysudilova