France / 29 September 2005 / France, Cour d'appel de Paris / Direction Générale de l'Aviation Civile de l'Emirat de Dubaï v. Société International Bechtel Co. / 2004/07635
| Country | France |
| Court | France, Cour d'appel de Paris (Court of Appeal of Paris) |
| Date | 29 September 2005 |
| Parties | Direction Générale de l'Aviation Civile de l'Emirat de Dubaï v. Société International Bechtel Co. |
| Case number | 2004/07635 |
| Applicable NYC Provisions | VII | VII(1) |
| Source |
Original decision obtained from the registry of the Cour d’appel de Paris |
| Summary | On 20 February 2002, a sole arbitrator ruled in favor of a company registered in Panama (International Bechtel Co.) in a dispute against the Directorate General of Civil Aviation of the Emirate of Dubai (DAC). The award was subsequently set aside by the Dubai Supreme Court on 15 May 2004. In the meantime, International Bechtel sought to enforce the award in France, which was granted by an order of the President of the Tribunal de Grande Instance de Paris (First Instance Court of Paris). At the time, the United Arab Emirates was not a party to the NYC and the 1991 Convention on judicial cooperation between France and United Arab Emirates applied to the recognition of arbitral awards. Appealing this decision, DAC requested full recognition, on the basis of the 1991 Convention on judicial cooperation, of the Dubai Supreme Court decision upholding the setting aside of the award. It further argued that the award may not be enforced in France since it did not meet the requirements of the 1991 Convention (which, according to it, provided for the exhaustion of local remedies and the enforceability of the award in the country of origin) and was set aside in application of the law chosen by the parties governing the arbitral procedure. It also claimed that the enforcement judge's disregard of the 1991 Convention constituted an excess of power, that the sole arbitrator did not comply with his mandate (Article 1502 3° of the Code of Civil Procedure) and that the recognition and enforcement of the award was contrary to international public policy (Article 1502 5°). The Cour d'appel de Paris (Paris Court of Appeal) confirmed the enforcement order and dismissed DAC's action. It reasoned that the condition relied upon by DAC whereby all recourse must be exhausted in the country of origin before the enforcement of the award may be granted in France is contrary to French fundamental principles of arbitration aiming at facilitating international circulation of awards (which do not foresee the setting aside of an award as a ground for refusing recognition and enforcement). It noted that these principles are applicable in the context of the 1991 Convention which was also concluded to facilitate recognition of awards between the two States, especially since the United Arab Emirates was not a party to the NYC, which reserves the right to apply more favorable French law allowing for the enforcement of an award having been set aside at the seat of the arbitration. The Cour d'appel de Paris then held that decisions rendered following annulment proceedings (similarly to enforcement orders) do not have any international effect outside the country where they have been rendered. It thus examined the grounds for the enforcement of the award, irrespective of the annulment of the award by the Dubai Supreme Court and held that the enforcement of the award was not contrary to the 1991 Convention. |
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Attachment (1)
 Original Language Adobe Acrobat PDF |
