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United Kingdom

France: Paris Court of Appeal—Non-compliance with FIDIC DAB step is admissibility, not jurisdiction; no annulment under Article 1520 FCCP (Todini v Georgian Roads Department)

Published on: 17 July 2024

Published by a LexisNexis Arbitration expert
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Article summary

What are the practical implications of this case?

By this ruling, the Paris Court of Appeal reiterates that it will not police compliance with compulsory, pre-arbitration settlement steps, as such matters concern the admissibility of claims rather than any of the limited grounds for annulment set out in Article 1520 of the French code of civil procedure (the ‘FCCP’). Accordingly, where parties bypass those provisions and the tribunal nonetheless finds the claim admissible, the court will decline to quash the award (see French Court of Cassation, civ 1, 1 February 2023, No 21-25.024). More broadly, this line of authority is to be applauded: setting aside an award due to a failure to negotiate would squander years of proceedings and expense, and leave the parties mired in uncertainty.

What was the background?

In 2017, Todini and the Georgian Roads Department (‘GRD’) concluded a contract to build a section of motorway valued at around USD 50 million (the ‘Contract’). The Contract made reference to...

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