The Paris Court of Appeal has reaffirmed the ability of French courts to grant interim measures even when disputes are subject to arbitration, underscoring France’s reputation as an arbitration‑friendly jurisdiction that protects parties’ interests before proceedings formally begin.
In the case S.A.R.L. CREATION LUXE DESIGN – CLD, RCS & S.A. INTER DEVELOPMENT DIFFUSION v COMPANY [N] ATHAR SAUDI TRADING CO (N° RG 25/07085), the court upheld a suspension of the termination of exclusive distribution agreements pending arbitration, finding that allowing the termination would threaten the distributor’s business continuity.
The decision highlights two important points for parties involved in international commercial arbitration: the requirement of urgency for interim measures and the jurisdiction of French courts to act before an arbitral tribunal is formally constituted. Legal experts say the ruling serves as a reminder of the practical tools available under French law to safeguard business interests prior to arbitration.
“Even when an arbitration clause exists, French courts remain a powerful forum to preserve the status quo and protect parties from irreparable harm,” said one Paris-based arbitration practitioner.
The ruling is expected to guide multinational companies and their counsel on effectively leveraging French courts to secure urgent relief while arbitration proceedings are being prepared, maintaining France’s balanced approach between supporting arbitration and protecting parties’ immediate interests.