Paris Court of Appeal, No. 08/21788

Paris Court of Appeal, Pôle 1 - Chamber 1, 11 May 2010, No. 08/21788

SNP BOAT SERVICE COMPANY VS. M. F G

Considering the contract of 17 January 2001 - in which an arbitration clause is inserted - by which the company SNP BOAT SERVICE sold a yacht to Mr F G for the price of EUR 1,978,699.58 excluding VAT;

Considering the award rendered under the authority of the International Court of Arbitration of Paris on 22 October 2008 by Mr. C D, sole arbitrator, who ordered SNP BOAT SERVICE to pay Mr. F G various sums in principal and interest;

Considering order of the President of the Tribunal de Grande Instance de Paris dated 26 November 2008 which pronounces the exequatur of the arbitral award;

Considering the action for annulment of the award filed on 19 November 2008 by SNP BOAT SERVICE;

Considering the judgment delivered on 7 April 2009 by the Commercial Court of Cannes which, in application of Articles L620-1 et seq. of the Commercial Code, ordered the opening of receivership in favor of SNP BOAT SERVICE, naming Mr. Z and Mr. A as court-appointed administrator and Mr. B as creditors’ representative;

Considering the writ of summons for compulsory intervention issued by Mr F G to Mr B, Mr A and Mr Z;

In view of the pleadings containing the withdrawal of SNP BOAT SERVICE of 18 February 2010, Me B and Me A;

Having regard to the pleadings of 11 March 2010 of SNP BOAT SERVICE, Mr. Z as director and Mr. B as the company’s creditors’ representative, who request the court to notify them that they are withdrawing their appeal, declare inadmissible Mr F G’s claims relating to the validity of the award and the determination of his claim against SNP’s liabilities and for payment of damages against SNP BOAT SERVICE, dismiss his claim for payment of damages against the administrators and creditors’ representative and reject his claim under Article 700 of the Code of Civil Procedure;

Having regard to the conclusions of 18 March 2010 of Mr. F G who requests to take note of the renunciation of the appeal, reject it, confirm the award, and in accordance with Articles 132, 1502 of the Code of Civil Procedure, L622 17, L622 23 of the Commercial Code, and 1383 of the Civil Code, jointly and severally condemn SNP BOAT SERVICE or, in default thereof, in solidum, Me A, Me Z, Me B in their respective capacities to pay him the sum of EUR 150,000 in damages due to the dilatory and procedural behaviour of these professionals, and the sum of EUR 15,000 under article 700 of the code of civil procedure;

Having regard to the conclusions of 25 March 2010 of Mr. A who asks to be informed that he joins in the withdrawal of the company SNP BOAT SERVICE and concludes that Mr. F G’s claims for payment are dismissed;

UPON WHICH

Considering that the defendant to the appeal is requesting that the withdrawal of the action for annulment be noted, it is therefore appropriate to confirm this withdrawal and declare it perfect; that, consequently, there is no need to reject the appeal or to ‘confirm the award’ as claimed by Mr F G ;

Considering that the claim for damages for abusive proceedings has its origin in the present action and falls within the provisions of Article L622 17 of the Commercial Code, since the action is subsequent to the judgment initiating the safeguard proceedings; that, however, since Mr F G did not provide proof of special circumstances which had caused the appellants' right to institute legal proceedings to degenerate into an abuse of their right to do so, since the mere fact that they had withdrawn did not indicate that they had acted with malicious intent, an error related to fraud or blameworthy levity, Mr F G’s claim for damages should be dismissed;

Considering that the company SNP BOAT SERVICE, Me Z, A and B should be ordered in solidum to pay Mr F G the sum of EUR 10,000 under Article 700 of the Code of Civil Procedure and order them to pay the costs;

FOR THESE REASONS

Notes the withdrawal of the company SNP BOAT SERVICE, M A, Z and B,

Declares it perfect,

Dismisses the claim for damages brought by Mr F G,

Rejects all other requests,

Condemns in solidum the company SNP BOAT SERVICE, Me A, Z and B, to pay Mr F G the sum of 10 .000 € under article 700 of the code of civil procedure,

Condemns in solidum the company SNP BOAT SERVICE, of Me A, Z and B, to the costs and admits SCP TAZE BERNARD and BELFAYOL BROQUET, avowed, to the benefit of article 699 of the code of civil procedure.