Court of Cassation, No. 98-11.799

Court of Cassation, First Civil Chamber , 21 March 2000, No. 98-11.799

André Y.

vs.

Philippe X.

The claimant invokes, in support of its appeal, the sole ground of cassation annexed to the present judgment;

On the sole ground:

Mr. Y… complains that the judgment under appeal (Paris, 11 September 1997) dismissed the action for annulment brought against an international arbitration award rendered in the dispute between him and Mr. X … in particular concerning the purchase of shares in a medical analysis laboratory. The claimant complains that Court of Appeal refused to consider that the enforcement of that award was contrary to international public order, even though one of its provisions, which provided for the purchase by Mr. Y… of shares held by Mr. X …, conflicted with the provisions of international public order of the Code of Public Health imposing, for such an operation, university degree requirements that were not met in the case in point.

However, the Court of Appeal rightly stated that the violation of international public order, as defined in article 1502-5 of the new Code of Civil Procedure, assessed at the time of recognition and enforcement of the award, must be flagrant, effective and concrete. The judges, decided that the challenged award did not order the transfer of the shares, but, noting the legal disappearance of these rights, held that M. Y…, as a result, caused Mr. X … damage for which they ordered compensation, they concluded exactly from this that these provisions of the award complied with the regulations mentioned and were not contrary to the international public order.

Thus the ground is therefore unfounded.

FOR THESE REASONS :

Dismisses the appeal;

Orders Mr. Y… to pay the costs;

Regarding Article 700 of the new Code of Civil Procedure, dismisses the request of Mr. X … ;

Thus concluded and judged by the Court of Cassation, First Civil Chamber, and pronounced by the chairman in his public hearing of twenty-one March two thousand.