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FRANCE 11 January 2022 Benin v SGS
Cour d’Appel, Paris, Chambre commerciale internationale, Pole 5 – Chamber 16, 11 January 2022, Case No. RG 20/17923
(Republic of Benin v. ... Read more
Cour d’Appel, Paris, Chambre commerciale internationale, Pole 5 – Chamber 16, 11 January 2022, Case No. RG 20/17923
(Republic of Benin v. SGS - SOCIETE GENERALE DE SURVEILLANCE SA)
FRANCE 11 January 2022 Benin v SGS
The Court granted exequatur of an ICC award rendered in Burkina Faso, which had been set aside at the seat, explaining that the annulment had no consequence on exequatur, because international awards are not subject to any state legal system and their validity must be examined solely under the rules applicable in the enforcement country – here, France. Applying the French Code of Civil Procedure, the Court dismissed Benin’s claim that the arbitral tribunal had lacked jurisdiction because the parties’ contract had been previously annulled by a Benin court. The Court referred to the substantive rule of international arbitration that an arbitration agreement is juridically independent from the main contract. Here, the validity of the arbitration clause itself was not disputed. As to the further argument that exequatur would be in violation of the international public policy principle of res judicata, the Court reasoned that in order for an award to be irreconcilable with a foreign court decision – in which case French international public policy may be affected – both decisions must be enforceable in France. In the present case, Benin had not requested exequatur of any of the Benin or Burkina Faso court decisions.
Award not binding, suspended or set aside: The court discusses the difference between the exclusive jurisdiction to set aside an award (primary jurisdiction), which belongs to the courts of the country of origin of the award, and the jurisdiction of all other courts to recognize and enforce the award (secondary jurisdiction); issues relating to the determination of the “competent authority”; and whether an award that has been set aside in the country of origin can be enforced in another State under the Convention.
Public policy: The court discusses the effect of other alleged violations of public policy on the recognition and enforcement of an arbitral award, such as contradictory reasons, manifest disregard of the law (US), etc.