Litigation & Disputes France 2025 | Courts, Arbitration, Mediation

Dispute Resolution in France

The French judicial system offers several ways to resolve disputes: courts, arbitration, and mediation. The choice depends on the nature of the dispute, amounts at stake, and desired speed.

France strongly encourages alternative dispute resolution (MARD): mediation, arbitration, conciliation. These alternatives are often faster and less costly than traditional court proceedings.

French Courts

Tribunal de Commerce

Specialized court for commercial disputes, composed of consular judges (elected business leaders).

Disputes between merchants
Disputes regarding commercial acts
Company law (shareholder disputes, director liability)
Insolvency proceedings (sauvegarde, redressement, liquidation)
Commercial leases

Tribunal Judiciaire

General jurisdiction: Civil disputes between individuals and businesses
Contract disputes: Contract performance, liability
Real estate: Sales, co-ownership, neighborhood disputes
Summary proceedings (référé): Urgent measures, interim relief

Conseil de Prud'hommes

Individual employment disputes
Wrongful dismissal challenges
Salary and bonus claims
Workplace harassment and discrimination

Tribunal Administratif

Tax disputes (direct taxes, VAT)
Disputes with government agencies
Public procurement
Urban planning

Civil Court Procedure

Introduction of proceedings - Summons by bailiff (huissier). Case registered on court roll.
Case management (mise en état) - Schedule for exchange of written conclusions. Juge de la mise en état supervises the instruction.
Closure of instruction - Ordonnance de clôture, no more pleadings or documents admitted.
Pleadings hearing - Oral arguments by lawyers. Judge may ask questions.
Judgment - Deliberation then delivery (1-3 months). Service on parties.
Remedies - Appeal (1 month), cassation appeal. Judgment enforcement.

Debt Recovery

Several paths exist to recover an unpaid debt in France:

1. Amicable Phase

Phone and written reminders
Formal demand letter (mise en demeure) by LRAR
Negotiation of payment plan

2. Payment Order (Injonction de Payer)

Simplified fast procedure for certain, liquid, and due debts. Debtor has 1 month to oppose after service.

3. Summary Proceedings (Référé Provision)

Emergency procedure if debt is not seriously contested. Quick decision (few weeks) with provisional enforcement.

4. Full Court Action

Summons to competent court. Possibility of conservatory attachment beforehand to secure the claim.

Mediation

Mediation is a voluntary process where a neutral mediator helps parties reach an agreement.

Aspect	Mediation	Court
Duration	Few weeks	12-24 months
Cost	Moderate, shared	High (lawyers, fees)
Confidentiality	Complete	Public hearings
Solution	Tailored, win-win	Imposed, winner/loser
Relationships	Preserved	Often destroyed

Arbitration

Arbitration is private justice where parties entrust their dispute to one or more arbitrators of their choosing.

ICC Paris: International arbitration center of world reference
CMAP: Center for mediation and arbitration of Paris
Arbitration clause: Provided in the original contract
Arbitration agreement: Signed after dispute arises

Arbitration Advantages

Speed (award in 6-12 months)
Complete confidentiality
Arbitrator expertise (technical fields)
International enforcement (New York Convention)
Flexible procedure, chosen by parties

Litigation Areas

Commercial: Contracts, invoices, unfair competition
Corporate: Shareholder disputes, director liability
Construction: Defects, delays, decennial warranty
Real estate: Hidden defects, leases, co-ownership
Employment: Dismissal, harassment, discrimination
Tax: Assessment challenges before tribunal administratif
IP: Counterfeiting, unfair competition, parasitism

Frequently Asked Questions

Which courts are competent for commercial disputes in France?

The tribunal de commerce is competent for: disputes between merchants, company law, insolvency proceedings (sauvegarde, redressement, liquidation), commercial contracts. For disputes up to €10,000, the tribunal judiciaire handles the case. Tax challenges go to the tribunal administratif.

How does a civil court procedure work in France?

Typical steps: 1) Summons by bailiff (huissier), 2) Case management (mise en état): exchange of written conclusions per schedule set by juge de la mise en état, 3) Closure of instruction, 4) Pleadings hearing, 5) Deliberation and judgment (1-3 months after pleadings). Total duration: 12-24 months. Appeal possible within 1 month.

What is the tribunal de commerce?

The tribunal de commerce is the specialized court for commercial disputes. Competences: disputes between merchants and regarding commercial acts, insolvency proceedings, director liability. French particularity: consular judges (elected business leaders), not professional magistrates.

How to recover an unpaid debt in France?

Progressive options: 1) Formal demand letter (mise en demeure LRAR), 2) Payment order (injonction de payer) for uncontested debts, 3) Summary proceedings (référé provision) if debt not seriously contested, 4) Full court action. After judgment: attachment of bank accounts, seizure of assets, real estate seizure. Limitation period: 5 years (art. 2224 Civil Code).

What is mediation in France?

Mediation is an alternative dispute resolution method (MARD) with a neutral and impartial mediator. Advantages: speed (few sessions), confidentiality, controlled cost, tailored solution. The mediation agreement can be court-approved (homologation) for enforcement. The judge can order parties to attempt mediation.

How does arbitration work in France?

Arbitration is private justice where parties choose their arbitrator(s). Framework: Civil Procedure Code (art. 1442-1527), ICC Paris (international center), CMAP. Advantages: speed, confidentiality, arbitrator expertise, international enforcement (New York Convention). Award has res judicata effect, exequatur for forced execution.

What are the limitation periods in France?

Main periods: general law = 5 years (art. 2224 Civil Code), actions on immovable property = 30 years, hidden defects = 2 years, product liability = 3 years, commercial debts = 5 years, employment claims = 2-3 years. Limitation is interrupted by court action, debt acknowledgment, or conservatory measure.

What is legal aid (aide juridictionnelle) in France?

Legal aid allows people with modest income to have legal costs covered. Conditions 2025: full aid if income < ~€12,700/year, partial aid up to ~€19,200/year (single person). Apply to the legal aid office (bureau d'aide juridictionnelle) at the court. Covers: lawyer fees, bailiff costs, expert fees.