07/04/2014

Paris, the Home of International Arbitration responds to the Prada Report

Paris, the Home of International Arbitration welcomes the Prada commission’s intention to reinforce the promotion of the city of Paris as the global centre of arbitration. This goal is the ratio essendi of our organisation. We are confident that this may be achieved by bringing together the entire French arbitration community in order to openly debate and agree on means of action to achieve this. These could include, as proposed by the Prada commission: the creation of a unique organisation encompassing all those involved in arbitration in France.

 

Paris, the Home of International Arbitration is keen to work with all those involved in arbitration in France to provide a central forum of practical information, news and events to achieve the goals of the Prada commission.

 

With respect to the specific issues raised by international arbitration involving public entities, further complicated by the recent Inserm ruling, Paris, the Home of International Arbitration sets out its views in the response. We are of the opinion that creating a separate set of rules for such arbitrations would both unnecessarily complicate French arbitration law and render Paris less attractive as a seat of arbitration. It stresses that the integrity of French public law may be preserved by other means such as the insertion in the existing provisions of public law, of specific conditions such as, for instance, prior approval of arbitration agreements by the relevant public authority. Paris, Place d’Arbitrage strongly advises that no amendment be made to the newly implemented provisions of the French Code of Civil Procedure. However, should it be deemed absolutely necessary to insert, as is proposed by the Prada commission, a statutory provision preventing public entities from entering into arbitration agreements in violation of fundamental principles of French public law. Paris, the Home of International Arbitration wishes that it be clearly provided that this provision is applicable exclusively to contracts performed in France, as was acknowledged by the Inserm ruling itself.