Court of Cassation, No. 97-22.211

Court of Cassation First Civil Chamber1 December 1999, 97-22.211 Published in the bulletin

EUTON

Vs.

URAL HUDSON

Summary: A company’s capacity to take legal action is not a matter of international public policy, within the meaning of Article 1502-5 of the new Code of Civil Procedure. Thus, a court of appeal lawfully rejects an action for annulment of an international arbitration award, based on the lack of capacity of a foreign company, which is temporarily struck off the trade and companies registrar (in French: Registre du commerce et des sociétés) during the arbitration proceedings, it being further specified that the laws of this company gave retroactive effect to the re-registration in the registrar.

On the two grounds, joined together and taken, in their various parts, for a violation of article 1502 of the new Code of Civil Procedure for the arbitral award which does not comply with international public order:

Whereas, since the legal capacity to bring proceedings does not fall within the scope of international public policy, the Court of Appeal (Douai, 6 November 1997) was able to reject the ground for annulment of the arbitral award, based on the lack of legal capacity of the Irish company Ural Hudson Ltd, inferred from its temporary removal from the trade and companies registrar (in French: Registre du commerce et des sociétés), without having to judge on an inoperative ground.

That the judgment under appeal is legally justified.

THEREFORE:

REJECTS the appeal (in French Pourvoi en cassation)