Paris Court of Appeal, 21 March 2018, CSF (Carrefour’s subsidiary) v. Fadis, no. 16/16091

CSF signed a lease agreement and a franchise agreement with Fadis to operate a store. The franchise agreement contained an arbitration clause, while the lease agreement did not contain any. A dispute arose following CSF’s decision not to renew the lease agreement. Fadis argued that the two agreements were inseparable. Therefore, as the term of the franchise agreement was not reached, it was impossible to terminate the lease agreement.

The Commercial Court of Evry rejected a jurisdictional plea, and dismissed Fadis’ claims to order CSF to continue executing the lease agreement until the end of the franchise agreement.

The Court of Appeal overturns the judgment.

The Court recalls that the arbitration clause extends to contracts implementing the same economic operation. The Court also notes that Fadis invokes the interdependence of the two agreements. The arbitration clause of the franchise agreement therefore extends to the management agreement.

Consequently, the Court declines its jurisdiction and refers the parties to the arbitration.

2018-06-27T05:35:13+00:00 March 21st, 2018|Court of Appeal, Paris Court of Appeal|0 Comments

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