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National Codification of International Commercial Arbitration The French Decree of May 12, 1981 (From Resolving Transnational Arbitration, P 117-145, 1984, Thomas E Carbonneau, ed. - See NCJ-98767)

NCJ Number
98774
Author(s)
B Audit
Date Published
1984
Length
29 pages
Annotation
This review of the French Decree No. 81-500 of May 12, 1981, which mandates rules for international arbitration in France, covers the direct regulation of international arbitration and the effect of and judicial control over nondomestic arbitration awards.
Abstract
The 1981 decree promotes and facilitates international commercial arbitration. Under the decree, all forms of arbitration agreements can be implemented, with the help of the French judiciary if necessary. Parties who draft extensive arbitration clauses are virtually unfettered in their selection and fashioning of both procedural and substantive arbitration rules. The same principle applies to arbitrators when the parties have left the selection of such rules to them. The decree also liberally recognizes international arbitration awards rendered both in French territory and foreign countries. Although judicial review of such awards is provided, clear and substantial limitations are placed upon it. The judiciary may only set aside those awards having blatant irregularities. The decree provides for the rejection or annulment of an arbitral award if it was granted without an arbitration agreement or an agreement that was void or expired. The award may also be set aside if the arbitrator was improperly appointed or designated, if the arbitrator did not follow the rules specified in the arbitration agreement, if the principle of fair trial was not respected, or if recognition or enforcement would be contrary to international public policy. Overall, the decree places a great deal of trust in the arbitrator and the parties to select, devise, and implement arbitration agreements. Whether this trust will have its desired effect will be demonstrated by future practice. Ninety footnotes are provided.