Litigation & Disputes France 2025 | Courts, Arbitration, Mediation
Dispute resolution in France: enterprise court, commercial litigation, debt recovery, mediation, arbitration. Complete legal expertise.
In summary: The French judicial system offers courts, arbitration, and mediation for dispute resolution. The enterprise court handles commercial disputes, while alternative dispute resolution (ADR) through mediation and arbitration is strongly encouraged as faster and less costly than traditional proceedings.
Dispute Resolution in France
The French judicial system offers several ways to resolve disputes: judicial courts, arbitration, and mediation. The choice depends on the nature of the dispute, the amounts at stake, and the desired speed.
France strongly encourages alternative dispute resolution (ADR): mediation, arbitration, conciliation. These alternatives are often faster and less costly than traditional court proceedings.
French Courts
Enterprise Court
Specialized jurisdiction for commercial disputes. Replaced the former commercial court in 2018.
- Disputes between companies (registered with BCE)
- B2B unpaid invoice disputes
- Company law (shareholder disputes, director liability)
- Bankruptcies and judicial reorganization (JRO)
- Company dissolution and liquidation
Court of First Instance
- Civil chamber: Disputes > €5,000 between individuals
- Tax chamber: Direct tax and VAT challenges
- Criminal chamber: Criminal offenses
Justice of the Peace
- Disputes under €5,000
- Residential leases (all amounts)
- Co-ownership
- Consumer credit
- Conciliation procedures
Labor Tribunal
- Individual employer-employee disputes
- Unfair dismissal
- ONSS contributions
- Unemployment benefits and social security
Civil Court Procedure
- 1 Case Introduction
Summons by bailiff or joint petition. Registration on court roll.
- 2 Pre-trial Phase
Schedule for exchange of written conclusions between lawyers. Possible investigative measures.
- 3 Pleadings Hearing
Oral pleadings by lawyers. Judge may ask questions.
- 4 Judgment
Deliberation then judgment pronouncement (1-3 months). Notification to parties.
- 5 Remedies
Appeal (30 days), opposition, 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 with acknowledgment of receipt
- Negotiation of payment plan
2. Payment Order (IOS)
Simplified procedure for undisputed B2C claims under €1,860. Debtor has 30 days to contest.
3. B2B Recovery Procedure
Since 2016, accelerated procedure via bailiff for undisputed B2B claims. No need to go to court if debtor doesn't contest.
4. Court Proceedings
Summons to competent court. Possibility of protective seizure beforehand to secure the claim.
Mediation
Mediation is a voluntary process where a certified mediator helps parties reach an agreement.
| Aspect | Mediation | Court |
|---|---|---|
| Duration | Few weeks | 1-3 years |
| 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.
- CEPANI: French arbitration and mediation center
- ICC: International Chamber of Commerce (Paris)
- Arbitration clause: Provided in the 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, warranties
- Real estate: Hidden defects, leases, co-ownership
- Employment: Dismissal, harassment, discrimination
- Tax: Assessment challenges
- IP: Counterfeiting, unfair competition
Frequently Asked Questions
The enterprise court is competent for: disputes between companies, company law, bankruptcies and judicial reorganization, commercial contracts. For disputes under €5,000, the justice of the peace is competent. Tax decision challenges go to the court of first instance (tax chamber).
Typical steps: 1) Summons or joint petition, 2) Pre-trial phase: exchange of written conclusions according to schedule, 3) Hearing of pleadings, 4) Deliberation and judgment (generally 1-3 months after pleadings). Total duration: 1-3 years depending on complexity and jurisdiction. Appeal possible within 30 days.
The enterprise court (formerly commercial court) is the specialized jurisdiction for commercial disputes. Competences: disputes between companies, unpaid invoice disputes, bankruptcies, judicial reorganization (JRO), company dissolution, director liability. Judges: professional magistrates and consular judges (business leaders).
Progressive options: 1) Written demand letter (recommended), 2) IOS (Summary Payment Order) for undisputed claims under €1,860, 3) Simplified B2B debt recovery procedure, 4) Summons to court. After judgment: protective or enforcement seizure. Limitation period: generally 10 years (5 years for commercial claims).
Mediation is an alternative dispute resolution method with a neutral certified mediator. Advantages: speed (few sessions), confidentiality, reduced cost, tailored solution. Areas: commercial, civil, family, social. Mediation agreement can be court-approved for enforcement. Judge can also propose/impose mediation.
Arbitration is private justice where parties choose their arbitrator(s). Framework: French arbitration law (Part VI Judicial Code) and CEPANI (French arbitration center). Advantages: speed, confidentiality, arbitrator expertise, international enforcement (New York Convention). Arbitral award: enforceable after exequatur. Cost: higher than court but faster procedure.
Main periods: general law = 10 years, commercial claims between traders = 5 years, contractual liability = 10 years, tort liability = 5 years (or max 20 years if ongoing damage), tax claims = generally 7 years, social claims (ONSS) = 3 years. Limitation is interrupted by summons, debt acknowledgment, or demand letter.
Legal aid includes: 1) First-line legal aid (free for all): lawyer helpdesks, general information, 2) Second-line legal aid (pro deo): free/partially free lawyer based on income. Conditions: single person < ~€1,526/month net, household < ~€1,817/month. Legal Aid Bureau (BAJ) of the competent bar.
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