Reforming French Arbitration Law: the proposal for a unified arbitration code

First, one of the core tenets of the proposed reform is the introduction of a dedicated Arbitration Code, designed to bring all relevant arbitration regulations under one comprehensive and accessible text. Currently, arbitration legislation and regulations are spread across various texts, rather than being solely contained within the civil procedure code or the civil code. The working group seeks to address this dispersion by consolidating all relevant rules to streamline access and enhance clarity. The envisioned Code features general provisions applicable to all types of arbitration, and clarifies the existing state of the law with respect to the scope of family, labour, and consumer disputes that may be submitted to arbitration. Importantly, it also aligns the rules governing international and domestic arbitration. Historically, these two fields have been subject to different legal frameworks. The working group proposes a unified legal framework inspired mainly by international arbitration practice. Notably, for domestic arbitration, the proposed reform contemplates removing the formal requirement for arbitration agreements to be in writing and eliminating the need to explicitly specify the subject matter of arbitration agreements. Moreover, procedures for signing arbitral awards in domestic arbitration would be aligned with those of international arbitration (i.e. by allowing the president of the arbitral tribunal to decide alone in the absence of a majority).

Second, the reform provides a revised definition of international arbitration in the proposed Arbitration Code, defining international arbitration as including disputes involving "international economic interests" and broadening the previously narrower reference to disputes "affecting the interests of international trade". This revision aims at taking into account the broadening of the types of disputes that may be submitted to arbitration and that do not necessarily concern international trade (such as investment arbitration, as well as arbitration in other fields such as labour or family disputes) in order to better reflect modern arbitration practice. 

Third, the proposed Arbitration Code introduces nineteen guiding arbitration principles aimed at bolstering the effectiveness, fairness, and quality of arbitration. At its core, the Code emphasises fundamental principles such as the independence and impartiality of arbitrators, the adherence to adversarial proceedings, and the assurance of equality between parties. It also underscores broader values like good faith, efficiency, confidentiality, and proportionality. Furthermore, the Report highlights distinctively French principles, such as prioritising the parties' intent in interpreting arbitration agreements, affirming the arbitral tribunals' primary jurisdiction to rule over their own competence, and maintaining that the annulment of an arbitral award at the seat does not, in itself, bar its recognition or enforcement in France.

Fourth,the reform significantly expands the powers of the judge in charge of the assistance and supervision of arbitration proceedings (commonly known in French as the “juge d’appui”)to facilitate better access to, and the effectiveness of, arbitration. This judge is entrusted with powers such as preventing any denial of justice (Art. 16), ensuring respect for party equality and autonomy (Art. 15), and addressing situations where a party’s impecuniosity impede the arbitration (Art. 33). For instance, if one party claims that the arbitration cannot proceed due to lack of financial resources, the juge d’appui may be called upon to take any measure necessary to allow the arbitration to move forward. More broadly, parties may apply to the juge d’appui for “any measure necessary to enable the arbitration to proceed”, thereby reinforcing the arbitrator’s ability to carry out their mission effectively with state court support. In the same vein, the juge d’appui is also entrusted with the new power of enforcing provisional or conservatory measures ordered by the arbitral tribunal. The juge d’appui may further be requested to constitute a new arbitral tribunal following the issuance of the award where it is not possible to constitute the same tribunal and in specific circumstances .

The next phase of the reform, which will run until the end of 2025, involves engaging in discussions and consultations with the arbitration community in order to refine the proposals put forward by the working group. Insights from these engagements will shape the final draft of the reform, which the Ministry of Justice, Gérald Darmanin, aims to see enacted by the autumn of 2026.

The proposed reform intends to make arbitration clearer and more accessible, particularly for foreign lawyers and clients, given that the subject matter has been largely shaped by case law in recent years. These changes are poised to maintain and enhance the attractiveness of Paris as a premier seat for arbitration, fostering an even more welcoming environment for international arbitration practitioners and clients.

Authored by Melissa Ordonez, Lucas Aubry, Anissa Abdelhadi, and Ernesto Lima Escalón.