France / 13 September 1993 / France, Cour d'appel de Grenoble / Société C.F.T.E. v. Jacques Dechavanne / 2550/92
| Country | France |
| Court | France, Cour d'appel de Grenoble (Court of Appeal of Grenoble) |
| Date | 13 September 1993 |
| Parties | Société C.F.T.E. v. Jacques Dechavanne |
| Case number | 2550/92 |
| Applicable NYC Provisions | II | II(1) |
| Source |
Original decision obtained from the registry of the Cour d’appel de Grenoble |
| Summary | On 20 March 1991, two individuals sold their shares in two French companies to a German company (Martin Merkel). In the sale assignment agreement, the German company committed that each of the French companies (now, C.F.T.E) were to execute employment contracts with the two individuals. The agreement contained an International Chamber of Commerce (ICC) arbitration agreement (seated in Switzerland). C.F.T.E refused to renew the employment contract of one of the individuals, as provided under the assignment agreement, who then decided to sue C.F.T.E before the Conseil des Prud'Hommes (Employment Tribunal), which ruled in his favor on 26 March 1992. Appealing this decision, C.F.T.E argued that French courts lack jurisdiction to hear this dispute and should have referred the parties to arbitration in accordance with the arbitration agreement contained in the assignment agreement. The Cour d'appel de Grenoble (Grenoble Court of Appeal) reasoned that the assignment agreement is an international contract. It then ruled that an arbitration agreement contained in an international employment contract is valid, while noting that this was confirmed by the French Government in its letter to the Secretary-General of the United Nations, according to which France withdrew the commercial reservation made under the NYC. It noted further that in accordance with Article II NYC, France committed, without any reservation, to recognize "an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect of a defined legal relationship". The Cour d'appel de Grenoble concluded that French courts lacked jurisdiction and overturned the decision of the Conseil des Prud'Hommes. |
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Attachment (1)
 Original Language Adobe Acrobat PDF |
