International arbitration and insolvency proceedings: strengthening the effectiveness of arbitral awards

Paris, June 10, 2024

In a decision rendered on 15 May 2024 (No. 23-11.012), the French Cour de cassation upheld an exequatur order limited to the recognition under French law of a foreign arbitral award ordering a French company in insolvency proceedings to pay a sum of money. The award had been issued after the opening of the insolvency proceedings in France.

On 28 June 2022, the Paris Court of Appeals had ruled that the inclusion of such an award in our legal system, even if only by way of recognition, was contrary to the principle of the stay or suspension of individual proceedings (a principle of international public policy) and thus violated articles L. 622-21 of the French Commercial Code and 1520-5° of the French Code of Civil Procedure. Hydro, represented by Darrois, appealed to the French Supreme Court.

The Court de cassation overturned the decision of the Court of Appeal and confirmed the possibility of obtaining an exequatur limited to “recognition of the amount of the claim established by the award in order to allow the recognition of this claim in the insolvency proceedings”.

This is a positive decision that will ensure the effectiveness of arbitral awards in France in the context of insolvency proceedings.

The Darrois team included Carine Dupeyron (partner) and Marcos Barradas for the arbitration aspects, and François Kopf and Mathieu Della Vittoria (partners) for the restructuring aspects.