Extensive application of the arbitration clause

07/15/2017

 

Written by Jochen Bauerreis

 

An arbitration clause may apply to an action in tort.

 

Cass. civ. 1e 6 July 2016 n°15-19.521 F-PB

 

 

In a decision dated July 16, 2016, the First Civil Chamber of the French Supreme Court (Cour de cassation) ruled that an arbitration clause, drafted in general terms and giving jurisdiction to the Court of Arbitration for Sport in the event of a dispute between the parties to the contract, is not manifestly inapplicable to a tort action.

 

This decision confirms previous case law and brings arbitration clauses into line with jurisdiction clauses.

This ruling on the application of an arbitration clause to an action in tort leads to a comparison with a forum selection clause. Indeed, it seems interesting to consider the application of a jurisdiction clause in the case of an action in tort.

 

The Cour de cassation (French Supreme Court) answered this question in two judgments of the Chambre commerciale (Commercial Chamber) dated March 9, 2010 and January 18, 2013 , in which it ruled that the jurisdiction clause was not inapplicable in principle in the event of an action in tort. Indeed, the application of the clause depends on its terms and its acceptance by the parties.

 

This solution has just been reaffirmed by the First Civil Chamber of the Cour de Cassation, which, in a decision dated January 18, 2017, ruled that the jurisdiction clause applied to the brutal breach of contract insofar as the clause was not limited to contractual obligations.

 

In conclusion, it can be said that arbitration clauses and jurisdiction clauses are applicable in tort actions, provided they are drafted in sufficiently broad terms that do not limit them to contractual obligations alone.

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