The Paris Court of Appeal reaffirms that French courts are a powerful venue to secure interim measures prior to arbitration (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)
Arbitration analysis: In this case, the Paris Court of Appeal offered a strong reaffirmation of a party‑protective approach to interim measures, while fully maintaining France’s arbitration‑friendly stance. The court reiterated that the existence of an arbitration clause does not prevent the parties from seeking interim measures before French courts prior to the commencement of the arbitral process. In particular, it upheld the suspension of the termination of the parties’ exclusive distribution agreements pending arbitration, finding that the termination threatened the distributor’s business continuity. The decision also offers helpful guidance on the requirement of urgency as a condition to interim measures and on French courts’ jurisdiction. More generally, it serves as a valuable reminder of the tools available under French law to secure interim measures before arbitration proceedings begin. Parties frequently face situations in which they need immediate measures and cannot afford to wait for an arbitral tribunal to be constituted (a process that often takes several months). Although some arbitration rules provide for emergency arbitration proceedings, the enforceability of emergency decisions remains challenging in many jurisdictions, including France, where interim arbitral orders do not benefit from the enforcement regime applicable to arbitral awards. This often places the efficiency of emergency arbitration proceedings at the mercy of the parties’ own goodwill. Against this backdrop, the tools available under French law (illustrated with this case) are particularly attractive and should be considered whenever urgent action is required before arbitration begins. Written by Raphaël Kaminsky, partner at Teynier Pic, and Diane Caron-Laviolette, senior associate at Teynier Pic.