The French legal system is based on civil law, established by statutes (issued by the Parliament or sometimes by the government). French courts may construe law but have no right to issue general rulings. No court decision has the authority of a precedent: no court is bound to follow the position of a superior court in a different case.
Although criminal investigations and administrative disputes follow an inquisitorial approach, criminal trials and all other disputes are based on an adversarial model. Proceedings generally consist of a combination of written submissions and oral arguments.
The French court system has a double pyramid structure with two separate orders:
Both orders have a three-level structure:
Within the administrative order, courts are organised on a territorial basis. Within the judicial order, organisation is purely territorial for appeal courts but the first-level courts are structured with regards to both territory and subject matter. Tribunaux judiciaires (judicial tribunals) have jurisdiction over most matters, including criminal, tort law, family, real estate and intellectual property, but not over commercial and labour matters, which go to the tribunaux de commerce (commercial tribunals) and Conseils de prud’hommes (labour tribunals), respectively.
The commercial tribunals are composed of judges elected from among businesspeople, whereas the labour tribunals are composed of judges elected from among both employers and employees. The other courts consist of “professional judges” (ie, holding professional credentials).
The Paris Court of Appeal has special jurisdiction over decisions of the French antitrust authority (Autorité de la Concurrence) and the financial markets authority (Autorité des marchés financiers).
The Paris Commercial Court and the Paris Court of Appeal also have international chambers intended for transnational commercial disputes, which may be designated by a jurisdiction clause in a commercial contract. Before these international chambers, English may be used in oral arguments if both parties agree.
The timeframe of a trial can vary significantly based on factors such as the number of parties involved, the complexity of the case, and the need for expert opinions or additional procedural steps. However, the average time between the start of the proceedings and the final hearing is typically between one and two years.
As a matter of principle, trials are held in public and judgments are issued in public. There are limited exceptions where secrecy is required to protect certain interests – eg, issues involving minors, family matters such as divorce, some insolvency-related proceedings or when privacy or commercial secrecy are at stake.
Court filings are not accessible to the public.
With limited exceptions, only qualified attorneys may represent parties. The right of appearance is extended to attorneys who are registered with a European Union State Bar. Lawyers who are qualified in a non-EU state must pass a special exam.
In certain cases, such as labour disputes or small civil claims, a party may be represented by a person who is not a lawyer.
Third-party litigation funding is new in France and, except for international arbitration, is still undeveloped compared to countries such as the United Kingdom, Germany or Australia. This might be explained partly by the fact that, besides the lack of punitive damages, litigation in France is less costly and class actions have a limited scope.
So far, third-party funding remains unregulated and relies on general principles of French law and lawyers’ ethical rules, including:
In the absence of a specific legal framework, scholars and legal professionals have discussed whether third-party funding agreements could be construed as loans. Since the banking sector is heavily regulated in France and only duly authorised financial institutions may grant loans on a regular basis, such an interpretation would restrict the growth of third-party litigation funding. Therefore, it would be unlikely for French courts to construe third-party litigation funding agreements as loans, since the “repayment” of the “loaned” sums is only incurred in the event of a favourable outcome, whereas the repayment of an actual loan is always incurred.
To a lesser extent, legal literature has also considered whether third-party funding could be construed as a form of betting (also a heavily regulated business in France) but has concluded the opposite, since it is not essentially speculative in nature. The French Supreme Court has not yet ruled on the matter.
Concerns Over Legal Obligation, Privilege and Arbitration
Both the National Council of Bar Associations and the Paris Bar Association have welcomed the development of third-party funding, which they see as a positive development for access to justice. They have also emphasised that lawyers owe ethical obligations solely to their client (ie, the funded party) and not to the funder, which means that:
Legal privilege under French law cannot be waived by the client; if clients wish to disclose to the funder any privileged information related to the proceedings, they must do it themselves and may not ask their lawyer to do so.
A number of concerns have been raised regarding third-party funding in international arbitrations. The ICC and the Paris Bar Association, among others, have highlighted the risks associated with non-disclosure of third-party funding agreements, especially regarding the potential annulment of the award and/or obstacles to its enforcement, and have recommended that the funded party’s attorney encourages their client to disclose the existence of such an agreement.
Since third-party litigation funding is unregulated, there are no restrictions on the types of lawsuits that can be funded.
As third-party litigation funding is unregulated, it seems to be available to both the plaintiff and the defendant.
There is no legal limitation on the minimum and maximum amounts that can be provided by a third party.
As court fees are relatively low, a third-party funder might consider covering legal fees in addition to the cost of legal opinions or experts, if necessary.
Article 11.3 of the Règlement Intérieur National prohibits pure contingency fee arrangements. However, attorneys may charge success fees that represent a portion of the total fees.
As third-party funding remains unregulated, there is no time limit within which a party to litigation should obtain third-party funding.
Although not mandatory, it is highly recommended to send a formal notice to the defendant (mise en demeure) before initiating a lawsuit. The date of such notice serves as a starting point for calculating legal interest when payments are due. The defendant is under no obligation to reply to a formal notice.
In certain cases, such as civil disputes under EUR5,000 or neighbourhood disputes, the claimant must first attempt to resolve the dispute amicably before initiating a lawsuit, and then mention in the summons the steps taken to reach an amicable agreement; otherwise, the summons may be ruled inadmissible.
The common civil limitation period is five years but might be only three months in defamation cases. The limitation period starts from the day the claimant knew, or should have known, the facts giving rise to the cause of action. This limitation period may, to a certain degree, be reduced or extended contractually (by no less than a year and no more than ten years).
A legal action, even in summary proceedings, interrupts the statute of limitations.
Before initiating a lawsuit, the claimant must determine which court has jurisdiction over the case, considering the subject matter, the territorial jurisdiction rules and the quantum of the claims.
Regarding subject matter, several courts have exclusive jurisdiction in certain areas. For instance, labour courts have exclusive jurisdiction for most work relationship disputes, while commercial courts have exclusive jurisdiction when commercial parties are involved. Tribunaux judiciaires have exclusive jurisdiction over certain litigation, such as intellectual property disputes, personal civil status claims, estate disputes or exequatur. In contrast to other courts, parties must be represented by an attorney before tribunaux judiciaires or tribunaux de commerce for specific matters, due to their nature or if the amount at stake is higher than EUR10,000.
Regarding territorial jurisdiction, the claimant may choose either the court where the defendant lives or the court of the place:
In civil matters, the summons (assignation) must contain the following mandatory information:
Before serving it on the defendant, the claimant must submit a draft summons to the court registry and ask for a first hearing date to be mentioned in the summons. Once served, the claimant must register the final summons with the court registry at least 15 days before the hearing date and at the latest two months after communication of the hearing date.
The legal reasoning and claims may be amended later – up to the final hearing for an “oral procedure” (usually before commercial courts) or up to the closure of the written phase for a “written procedure” (before tribunaux judiciaires).
Service is the responsibility of the plaintiff, who must ask a bailiff to serve the summons to the defendant in person, except for labour proceedings, where it is the responsibility of the court to summon the parties.
Upon service, the judicial proceedings have not yet begun, and it remains up to the claimant to file the suit before the court within two months; otherwise, the claim shall be null and void.
A party located outside France can be sued in France, which implies that service can be made through the central authority of the foreign country pursuant to the 1965 Hague Convention.
If the defendant fails to take part in the proceedings, the court may try the case relying solely on the writings and evidence provided by the claimant. The ruling may be either “by default” or “deemed adversarial”, depending on the circumstances.
The judicial remedies available to the defendant may take the form of either an opposition in the first case (which enables the defendant to extinguish the judgment and reopen the debate) or a regular appeal in the second case.
When the defendant fails to take part in the proceedings because the initial complaint has not been served in person, the ruling must be notified to the defendant within six months, or else it becomes null and void.
Certain groups and associations may bring representative actions for the defence of collective interests in certain areas, such as consumer law, health law, discrimination in the workplace, environmental protection, personal data and housing tenancy. On 30 April 2025, French law was reformed to improve the effectiveness of group actions, notably by unifying the various existing regimes and by expanding their scope and the list of potential claimants.
There is no legal requirement to provide clients with a cost estimate of any potential litigation at its outset. However, it is mandatory for attorneys to sign a fee agreement with their client describing the fee calculation method (hourly rates, flat fees, success fees). During the course of their work, lawyers must regularly inform their clients of the evolution of their fees and costs.
During the phase where parties exchange writings and before the final hearing takes place, it is possible to make an interim application by seizing the judge in charge of monitoring the cases. Before tribunaux judiciaires, for instance, a pre-trial judge (juge de la mise en état) has exclusive jurisdiction to rule on interim applications for case management issues and interim remedies.
The judge delivers rulings called jugements avant dire droit (judgments before stating law), which do not take the matter out of the judge’s hands nor have the force of res judicata on the merits of the proceedings. There are two types.
In case of urgency, the fixed-date procedure (à jour fixe) enables a claimant, authorised by the president of the court, to summon his or her adversary to appear before the court on a specific date, usually in the near future, to obtain an early judgment on the merits.
The pre-trial judge has exclusive jurisdiction over procedural motions that are likely to bring the case to an end without review of the merits, including exceptions de procédure such as lack of jurisdiction or fin de non-recevoir such as statutes of limitations or the absence of legal interest in bringing proceedings.
Exceptions de procédure must be raised at the same time and in limine litis, before any substantive defence on the merits or fin de non-recevoir.
Interested parties not named as a claimant/plaintiff or defendant may join a lawsuit through a voluntary action (intervention volontaire). These interested parties may either bring claims of their own or support another party’s claim or position. The intervention is admissible if the party has a legitimate interest and proves the existence of sufficient connections with the original claim.
Before tribunaux judiciaires, the pre-trial judge may in some instances order a party to pay a sum of money as security for the other party’s legal costs. For instance, the family court can issue an interim order so that a spouse pays a sum to help the other spouse pay legal fees. However, the French Supreme Court has ruled that the party asking for a provision for costs must prove that the obligation is not seriously disputable on its merits.
When an early judgment is issued on a procedural issue, the pre-trial judge often orders the losing party to pay a certain amount for legal fees. If an expert is appointed, the judge generally orders the parties to pay a provision for the expert’s fees.
Since a July 2025 reform, conventional pre-trial management (instruction conventionnelle) has become the rule in civil proceedings, while judicial pre-trial management is now the exception.
The parties may manage the pre-trial phase through a procedural agreement, filed with the court, which allows them to jointly organise the progress of the proceedings. There are two types of procedural agreements:
The parties who enter into such agreements are granted hearings in advance.
If such agreements are not reached, the pre-trial judge provides a timetable for the parties to organise their submissions. However, the duration is extremely variable, depending on the case and procedural exceptions raised. By way of exception, during the first hearing, if there is an emergency or if the case is ready to be judged, the pre-trial judge can send the parties immediately to trial, which is called the short route (circuit court).
In 2023, the government created a new tool in the hands of the pre-trial judge, enabling parties to split the proceedings. The parties can agree on which claims are ready to be tried. In such case, they ask the pre-trial judge to partially close the pre-trial phase, so the claims determined by the parties will be subject to a separate judgment.
“Discovery” as understood in common law jurisdictions does not exist under French law.
There is no discovery from third parties.
As “discovery” does not exist under French law, there is no applicable information about a general approach to discovery in this jurisdiction.
In French civil proceedings (broadly defined as non-criminal proceedings), the parties must prove the relevant facts supporting their respective claims. Contrary to common law, French law combines both adversarial and inquisitorial systems, where the judge plays an active role in trying to reveal the truth during the preparatory phase (mise en état) so that the trial can be judged with the necessary and relevant evidence. The evidence is either “free” (for example, in commercial or criminal matters) or “legal” (only certain types of proof are admissible under strict legal criteria – eg, written proofs or testimonies).
In France, the principle that “one should not be compelled to provide evidence against one’s own interests” prevailed for a long time but is now tempered by Article 10 of the Civil Code, which states that “everyone is required to lend aid to the court so that the truth may be revealed”.
Nowadays, by virtue of the adversarial principle supervised by the judge (who guarantees the fairness of the proceedings), each party must give its arguments and exhibits spontaneously and in due course. Moreover, a party can also be compelled – on the other party’s demand and on a judge’s injunction if needed – to provide some useful elements for the resolution of the dispute, even against its own interests. Therefore, the judge can force either a party or a third party to provide evidence, and will ensure it is shared in due course so that the parties can prepare their defence. The judge can also go even further, ordering civil investigation measures (mesures d’instruction), like expertise or the hearing of witnesses.
These measures are subject to strict requirements: the requesting party must demonstrate sufficient connection with the dispute, precisely identify the subject of the request and explain its necessity, as the judge shall not make up for a party’s deficiency in providing evidence. For instance, the judge may order in futurum investigative measures (ie, pre-trial measures), provided such measures meet various conditions (having a legitimate ground, being sought before trial, being proportionate to the aim pursued and seeking proofs upon which the resolution of the dispute depends).
Recent Supreme Court case law confirms a balancing test: even unlawfully or unfairly obtained evidence may be admitted where it is indispensable to the right to evidence and strictly proportionate to the aim pursued, including when business secrets or privacy are at stake.
French law recognises legal privilege under the concept of secret professionnel, under which any exchange of information between attorneys and clients is subject to professional secrecy. The infringement of professional secrecy, by either litigating or transaction lawyers (who are granted the same status), constitutes both a breach of ethical rules and a criminal offence. Therefore, respecting professional secrecy may impede the giving of certain documents or information.
Business secrecy also allows a party to refuse to provide certain sensitive material, where it is confidential or key to the party’s competitiveness.
There is ongoing legislation to grant confidentiality to in-house counsels’ written consultations but it has not yet been enacted (as of 30 September 2025), so in-house counsel communications remain unprotected, unlike lawyers’ “professional secrecy”.
The right to privacy (protected by both civil and criminal law) can be another barrier to the production of some documents. For instance, a drone picture of a private property taken without the owner’s consent can be judged inadmissible if it was neither necessary nor proportionate.
This example is indicative of the different approaches taken by, and the legal discrepancies between, French law and common law systems. For instance, the US uses discovery and the US Supreme Court applies serious sanctions on those refusing to provide information, whereas the Cour de cassation critiques fishing expeditions and protects other fundamental principles and interests under legal instruments, including the Blocking Statute of 1968, which prohibits any communication to foreign authorities of economic, industrial or technical information for the purpose of use as evidence, under the threat of criminal penalties.
French law provides injunctive relief called provisional measures (mesures conservatoires) to achieve a broad range of objectives, such as:
Conservatory attachments (saisies conservatoires) and judicial securities (sûretés judiciaires), for example, are provisional measures that enable a creditor to freeze real estate or movable assets, tangible or intangible, belonging to the alleged debtor.
In order to demonstrate that there is no serious challenge to the debt obligation and that some circumstances are likely to threaten its recovery (late or non-payment, unsuccessful formal notice, insolvency of debtors, etc), it is sufficient for the debt obligation to appear grounded in principle (it is not necessary to be certain, of a fixed amount nor due).
The measure is enforced upon prior authorisation from the enforcement judge. The requesting party must then bring an action on the merits within a short period, or else the judicial security shall become void.
Claimants may introduce proceedings to obtain interim relief orders (ordonnances de référé), which do not have the force of res judicata on the merits but are provisionally enforceable ipso jure. Since a July 2025 Decree, the claimant may choose between the judge hearing the case on its merits or the judge of the place of enforcement.
A party can quickly obtain interim relief introducing these provisional proceedings with mention of the hearing date. Such proceedings include the following.
In France, injunctive relief can also be obtained on an ex parte basis (ie, without notice to the respondent and without the respondent being present). It is an order upon a party’s motion (ordonnance sur requête) and is a non-adversarial process. The claimant seeks to surprise the respondent by using this method.
However, an adversarial debate shall take place if the other party seeks the retraction of the order.
If the defendant later successfully discharges the injunction (requesting the lifting of the conservatory attachments or appealing and overturning the référé order), the boomerang effect could be harsh, and the applicant could be held liable for the damages suffered by the respondent. Therefore, the applicant would have to:
That is why the provisional measures are said to be “at the risk and expense of the applicant”. As a result, the applicant can be required to provide securities (a deposit, a guarantee or a security) in some instances. The respondent can avoid provisional enforcement from the applicant by lodging cash or securities themselves (a bank guarantee for the amount of damages would suffice to lift a provisional attachment).
In principle, injunctive relief is ordered by the judge where the measure is enforced. On an exceptional basis, it can also be granted against assets of the respondent located in foreign countries, under certain conditions (if the precautionary attachment is brought at the same time against the debtor’s assets both in France and abroad).
Like the compulsory production of documents located in the hands of a third party, provisional measures can also be obtained against third parties (for example, a provisional attachment on the wages of a defendant might be enforced directly in the hands of their employer).
If a respondent fails to comply with the terms of an injunction, there is no such thing as contempt of court but the respondent may incur punitive measures, called penalty payments (astreinte).
Proceedings differ, depending on each type of jurisdiction. A common characteristic is that proceedings start with the filing of a writ (or a form in certain instances), followed by the exchange of written submissions and evidence by the parties before a hearing where oral arguments take place.
Whereas administrative proceedings tend to be based mainly on written materials (oral arguments being limited), judicial proceedings are based on filing submissions and evidence, concluding with oral arguments at a dedicated hearing in front of a panel of either three judges or a single judge. However, and except for criminal trials, oral arguments are generally limited to one hour or two, without involving witnesses or experts at trial.
In some courts (such as tribunaux judiciaires), each party will generally present its closing argument through its attorney, with minimal intervention from the judges, while in other courts (such as tribunaux de commerce) the oral argument is more interactive, with the judge(s) asking for clarifications on certain points.
After the filing of the initial writ of summons, most courts hold case management hearings every four weeks or so to prepare the case file for the oral arguments and to rule over any interlocutory motions (lack of jurisdiction, dispute over evidence, etc).
Certain proceedings may be conducted without any hearing before tribunaux judiciaires, when the parties expressly agree to such. In this case, the factual and legal reasoning, as well as the claims, shall be submitted exclusively in writing.
Under French law, jury trials only exist for the most serious criminal matters before the Cour d’assises, which has jurisdiction to judge criminal acts punishable with over 20 years of imprisonment. Jury trials are excluded in all civil, commercial, labour and administrative disputes.
The types of evidence that are admissible depend on the jurisdiction. For civil matters, there are certain rules (not applicable before commercial courts) that restrict admissible evidence, depending on the nature and gravity of the dispute.
Evidence generally consists of documentary evidence, testimonies and investigative measures decided by the court during case management hearings. Usually, at least in civil and commercial trials, evidence must be brought to the court by the parties.
Contrary to criminal proceedings, civil and commercial courts used to reject evidence obtained by unlawful or disloyal means, but the Supreme Court ruled in 2023 that unlawfully obtained evidence could be admissible if it is strictly necessary and proportionate to prove the claim.
Although parties can file experts’ written reports as evidence or ask the court to appoint an expert to make an assessment on a specific issue, it is rare that experts provide testimony at trial, even those experts appointed by the court. This is because the trial hearing is mostly limited to an oral presentation of the parties’ arguments where the parties’ attorneys summarise the evidence of their clients, rather than cross-examine the evidence with witnesses or experts being present (except before the International Commercial Chamber of the Paris Court of Appeal – see 1.2 Court System).
In principle, closing argument hearings are public (with limitations in certain matters – see 1.3 Court Filings and Proceedings). Transcripts are very limited, even in criminal matters, and the dialogue of the persons present is never recorded verbatim, except before Cours d’assises under certain circumstances.
Except in simple disputes and before Cours d’assises, judgments are issued weeks or months after the closing argument hearing (typically four to eight weeks).
Parties have access to the full judgment of their case. Under certain conditions, third parties may also request copies of judgments. Moreover, in principle, the public has access to anonymised versions of decisions rendered by French courts, since an executive order of June 2020 enshrined the open data of court decisions. Judicial court decisions must be posted online within six months of their issuance (two months for administrative courts).
Judges’ interactions with parties and their lawyers, when cases have come to trial, have increased in recent years. In the past, only criminal trials involved a thorough interaction, but this is now frequent in all types of courts, especially in commercial courts where judges often ask precise questions, albeit only on the points they deem useful.
Judgments are generally rendered around two to three months after the hearing.
Proceedings on the merits of a dispute generally take one to two years to be decided by most courts.
There can be accelerated proceedings on the merits (called jour fixe, bref délai or procédure accélérée au fond) upon evidence of an emergency. In such cases, the hearing for oral arguments takes place a few weeks or months after the delivery of the initial writ.
Parties can settle at any time, including after a judgment has been rendered. Settling is not possible for issues related to public order or non-pecuniary rights, such as the capacity of the persons, citizenship, filiation, professional sanctions for personal bankruptcy, etc. Although possible, court approval is not required to settle a lawsuit.
A non-disclosure clause can be included in the agreement.
Parties can ask the judge to certify the settlement agreement to ensure its enforceability. The parties can appeal against the refusal of the court. Settlements shall be enforceable when countersigned by the lawyers of each of the parties and endorsed by the clerk of the court.
In order for a settlement to be valid, parties must make mutual concessions, in addition to classic conditions applicable to all contracts (ie, consent of the parties, contractual capacity, lawful and specific content). If those conditions are not met, the trial judge may declare the settlement null and void, even if it has been probated.
Forced execution in kind has been the principle since 2016. When execution in kind is impossible, the judge may consider awarding damages to compensate the prejudice caused. In addition, litigants can ask the judge to order the losing party to pay the legal costs, including legal fees.
The main rule for damages is full compensation, meaning that the claimant may only receive the exact compensation for the damage suffered, without any kind of personal gain. This principle applies to contract law, where only the damage that could have been foreseen at the time of the contract’s conclusion may be compensated. Therefore, punitive damages, mostly accepted in common law, do not exist in French civil law.
However, the parties to a contract may decide to insert a penalty clause (clause pénale), applicable in case of breach of contract and upon formal notice by the other party. Only the judge can either moderate or increase such a clause if its amount is manifestly excessive or too low compared to the damage suffered. In certain instances, such clause may be considered abusive (such as in residential lease agreements or consumer disputes).
In principle, evidence of direct, personal and certain damage must be provided in order for an injury to be recoverable. Therefore, prospective damages (which could never materialise) are not compensated. However, the boundary between certain and uncertain is not always easy to draw. Damages resulting from a loss of opportunity, defined as the loss of a “chance”, are now deemed to be compensable, although they will only give rise to partial compensation (ie, the estimated value of the probability of that positive event happening).
In terms of classification, French civil law commonly distinguishes between pecuniary damage (loss of margin, loss of expected profit, etc) and non-pecuniary (or moral) damage (harm caused to honour or reputation, emotional damage, etc).
In the case of personal injury damage, when the physical integrity of an individual is at stake, a reference table called the Dintilhac nomenclature is used to identify the many different types of damage that can be repaired.
Damages can be evaluated by judicial experts.
Legal interest may be added to the damages. It incurs from the date of delivery of the court decision (or of the formal notice), and is calculated according to either legal or contractual rates.
Since 2020, all court decisions are automatically enforceable immediately (ie, provisionally), notwithstanding an appeal against the decision. However, the court may decide to dismiss provisional enforceability, in whole or in part, if it is deemed incompatible with the nature of the case or if it entails excessive consequences.
Similarly, in the case of appeal or opposition, the first president of the court may be asked to dismiss provisional enforcement if there is a serious plea for annulment or if it entails manifestly excessive consequences. The judge may also order the debtor to pay penalties in case of failure to pay (a penalty for each day of delay).
If the debtor does not spontaneously adhere to the judgment, the creditor shall serve the decision by bailiff. The bailiff may then proceed to the following attachments provided for by the French Code of Civil Enforcement Procedures:
To enforce a foreign judgment in France, one must follow an exequatur procedure. However, within the European Union, regulation provides that decisions given in one member state are, in principle, recognised in other member states with no need for any specific procedure.
Under French law, an appeal allows for a re-examination of the case, both in fact and in law. Since 2020, appealing against first instance decisions does not suspend the decisions’ effects: they are provisionally enforceable as of right, unless the law or the judge decides otherwise.
Most first-degree decisions and regulatory authorities’ sanctions can be challenged by way of appeal. An appeal can be lodged against a pre-trial judgment but, in most instances, it will only be reviewed by the appeal court, together with the appeal lodged against the judgment on the merits.
In most cases, representation by an attorney is compulsory before the appeal court.
The parties have one month from the notification of the judgment to lodge an appeal. The appeal period can be reduced to 15 days, particularly for interlocutory and interim relief orders, orders on motions and decisions from the enforcement judge. The time limit is extended by one month when the notified party is domiciled in French overseas territories, and by two months when the notified party is domiciled abroad.
The notice of appeal shall state whether the appeal aims to cancel the judgment on procedural grounds or challenge its findings. In the latter case, the notice must specify which findings are challenged.
Once the appeal has been lodged, the case can be allotted to a standard track or a fast track. On the standard track, appellants have three months from the filing of the notice of appeal to file their submissions; the defendant then has three months from the notification of the appellant’s submissions to respond. On the fast track, which is reserved to urgent cases, including appeals against interim relief orders, the parties have two months each. For both the standard and fast tracks, the time limits may be reduced or extended by the presiding judge on a case-by-case basis.
Under the same conditions as for the notice of appeal, the time limits are extended when the notified party is domiciled in the French overseas territories or abroad. The judge in charge of managing the case on either track can order further rounds of submissions.
In cases of extreme urgency where parties’ rights are “at risk”, parties can petition the highest ranking judge of the court to have their case heard on a fixed date. A systematic invitation for the parties to enter into a participatory procedure agreement for hearing preparation was introduced in 2023 (Convention de procédure participative aux fins de mise en état). To encourage its use, resorting to these agreements allows for priority scheduling of hearings.
The scope of the dispute before the appeal court is tied to the notice of appeal and the parties’ initial submissions.
In their first submissions, the parties must specify all their claims on the merits. In principle, new claims made in subsequent submissions may be held inadmissible, except for claims specifically intended to respond to the party’s submissions and exhibits, or claims dealing with new issues raised after the filing of the first submissions.
This restriction only applies to claims: new factual or legal arguments may still be raised in subsequent submissions if they relate to the parties’ claims.
A court of appeal cannot dismiss an appeal that complies with the rules mentioned in 10.4 Issues Considered by the Appeal Court at an Appeal. However, a party can petition the appeal judge to strike out the appeal of the other party when it does not comply with the appealed judgment requirements (for instance, to pay the damages awarded). The judge also declines to strike out the appeal when the party is unable – for objective reasons – to comply with the decision or when enforcing the decision could entail manifestly excessive consequences.
After hearing an appeal, the appellate court may uphold or reverse the lower court decision either in whole or in part but can also modify it, ordering any measure it deems justified and awarding costs.
The prevailing party is generally awarded reimbursement by the losing party of the costs linked to the proceedings and, to some extent, their lawyer’s fees. The costs that are directly related to the conduct of a trial (dépens) include:
Awards of attorney’s fees are generally limited to lump sums and may not cover all the legal fees incurred by the prevailing party.
The award of costs is at the court’s discretion. The behaviour of the parties as well as fairness may be taken into consideration.
Any award of compensation shall bear interest at the legal rate from the date of delivery of the judgment, unless the court decides otherwise. This is applicable to attorney’s fees.
The most popular ADR methods in France are mediation and conciliation, which are structured processes in which the parties aim to reach an agreement for the resolution of a dispute with the help of a third person. The main difference between mediators and conciliators is that judges may themselves be conciliators if they decide so, whereas a mediator is always a third party. Moreover, mediators receive fees from the parties, while conciliators are volunteers.
Mediation and conciliation may be suggested either by the parties themselves or by the judge. Parties may also contractually agree to use the Procédure participative (participatory procedure), in which they undertake to work jointly and in good faith for an amicable resolution.
To enforce an ADR agreement, the parties may refer it to the judge for approval. Since 2022, an ADR agreement may even be enforceable when countersigned by the parties’ lawyers and with a visa from the court’s registry.
The popularity of judicial ADR methods is increasing as they offer advantages such as confidentiality, flexibility and the saving of significant time and money. Courts often encourage parties to initiate ADR. In certain matters, it has become standard practice for some courts to suggest mediation at the beginning of the proceedings and to recommend names of mediators.
According to the Centre for Mediation and Arbitration of Paris (CMAP), the success rate of mediation cases in France was 63% in 2024, but only 14% were initiated by both parties. 74% of mediations in 2024 were conducted in commercial cases. Parties may include mediation or conciliation clauses in contracts (this is known as conventional mediation or conciliation).
Generally, neither mediation, conciliation nor the Procédure participative is compulsory: they are based on consent and must be accepted by all parties. By exception, an ADR attempt is mandatory before initiating certain proceedings, such as labour law disputes or divorce proceedings.
An ADR attempt may also become compulsory due to the willingness of the parties. If they have provided for mandatory conciliation or mediation in their contract, they must use it first, before initiating litigation. If they fail to do so, the defendant can assert that the claim is inadmissible (except in proceedings of interim relief depending on emergency situations).
In recent years, the judge’s power to ask the parties to use mediation at every step of the proceedings has widened, even during pre-trial or specific proceedings where it was previously prohibited (divorce and judicial separation). A mandatory ADR proceeding was also introduced for disputes with low financial stakes (under EUR5,000) and neighbourhood disputes, except in certain cases (for example, in the case of legitimate grounds or for consumer or mortgage loans).
Since 2025, the judge may enjoin the parties to attend a preliminary meeting with a judicial mediator for information purposes – the parties are hence compelled to attend this meeting, where the mediator explains the principles and benefits of mediation. Failure to comply without legitimate reason may result in a civil fine of up to EUR10,000. However, each party remains free to refuse to take part in mediation.
The judge also has the power to summon parties to a conciliation hearing to be held by another judge. The hearing enables a judge other than the one assigned to the dispute to assist the parties in reaching an amicable resolution within a confidential framework, playing a more proactive role in facilitating the process. However, the parties are only required to be physically present, with no real obligation to reach a final and binding agreement. If the parties fail to reach an agreement, they must return to the original judge.
Several organisations with a particular focus on ADR have been established since the 1980s, including the Institut Français de la Médiation, which was launched in 2007, as well as professional training organisations for mediators, labour unions and professional networks.
The government has also established a number of specific mediation institutions that work in a variety of fields, including both public and private ones. The most successful is the Médiateur des Entreprises, a national service reporting to the Ministry of Economic and Financial Affairs that was created in 2010 to help companies solve their disputes with clients or suppliers. According to a 2025 report, its mediation department handled more than 1,900 cases in 2024, with a high success rate.
A Law of 22 December 2021 titled “Confidence in the judicial system” created a National Mediation Council. Its mission is to provide advice in the field of mediation and to propose to the public authorities any measures to improve it.
France is a major centre of arbitration, with the International Chamber of Commerce (ICC) and the International Court of Arbitration being located in Paris. The latest version of the ICC Arbitration Rules was published in 2021.
The arbitration process can be conducted either on an ad hoc basis or under the auspices of an arbitral institution (such as the ICC). Arbitration procedures are greatly influenced by the will of the parties, as specified in arbitration clauses (before a dispute arises) or compromises (after a dispute has arisen). There is often a purely residual nature to the sets of laws governing arbitration procedures. The applicable body of rules may depend on the purpose of the arbitration.
There are international arbitrations “involving the interest of international trade”, as well as domestic arbitrations. In any event, the due process of law, adversarial principle, rights of defence and equality of arms must govern the arbitration process.
In April 2025, the Ministry of Justice announced the creation of an arbitration code, planned for autumn 2026, the main purpose of which will be to increase the flexibility and effectiveness of arbitration rules, and to better protect weaker parties.
Disputes relating to persons’ capacity and status, divorce, judicial separation and any litigation involving public institutions or public order issues cannot be settled through arbitration.
There are several judicial remedies available to challenge an arbitration award. Appeals on the merits are restricted to domestic awards if such an appeal has been specified by the parties.
Annulment appeals are available in any case when:
Appeal proceedings should be brought before the court of appeal that has jurisdiction over the award. The award can be appealed as soon as it is released and up to one month following its notification.
Since July 2025, the Paris Court of Appeal holds exclusive jurisdiction over all annulment appeals.
Despite the reform of the appeal procedure, the suspensive effect of the appeal continues to be applicable to domestic awards, notwithstanding the ability of the arbitration tribunal to order provisional enforcement. If granted, provisional enforcement can be challenged by the parties through a specific application before the president of the appeal court. An appeal against the arbitration award also triggers an appeal against the subsequent enforcement order.
Finally, full judicial review of the arbitration might also be possible, mostly in the event of a fraud.
Exequatur is automatically granted when the award has been fully or partially confirmed by the court of appeal. Otherwise, the enforcement of the award requires a fast and simplified ex parte judicial application.
The application file should include an original of both the award and the arbitration agreement (or certified copies). For awards in foreign languages, a French transcript may also be requested.
Applications should be filed before:
Enforcement can be denied if the award and/or the enforcement itself constitutes a blatant violation of domestic or international public order. The French Supreme Court recently denied enforcement in a matter regarding an insolvency proceeding, ruling that the principle of the stay of individual proceedings – which is a matter of international public policy – cannot be circumvented through arbitration (Cour de cassation, 8 February 2023, No 21-15.771).
An appeal can be lodged against such decisions within one month after being notified.
Favourable enforcement decisions cannot be appealed when they affect domestic and international arbitrations, except when the parties have agreed to waive their right to claim for the annulment of the award. Such decisions that affect foreign awards can be appealed when they are based on annulment grounds provided in Article 1520 of the FCCP.
There are no major proposals for dispute resolution reform in France, as far as is known.
The main areas of growth for commercial disputes are linked primarily to competition law, duty of care and environmental liability, financial fraud and bank liability, cybersecurity and data protection, collective insolvency proceedings, etc.
The entry into force of the “DDADUE Law” of 30 April 2025, which transposes Directive 2020/1828 and reforms the class action regime, could lead to an increase in litigation related to class actions.
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Consecration of a New Civil Penalty for Lucrative Misconduct
France has introduced a civil penalty targeting lucrative misconduct (faute lucrative) through the DDADUE Law of 30 April 2025 (Law No 2025-391).
This reform introduces Article 1254 into the French Civil Code, establishing a civil penalty for lucrative misconduct that applies to both contractual and tortious breaches arising from professional activities.
Lucrative misconduct is defined as a deliberate breach from which a professional derives profit exceeding the damages they could be ordered to pay to the victim.
Introduction: the challenge of profitable misconduct
In French civil liability law, the principle of full compensation aims to restore victims to their pre-harm situation, preventing both loss and profit for the victim. The victim cannot profit from compensation beyond what is necessary to restore their pre-harm situation. This principle therefore prohibits punitive damages paid to victims as private penalties, which are known in Anglo-Saxon systems but have traditionally been rejected in French law for the benefit of compensatory damages.
However, lucrative misconduct that allowed wrongdoers to profit despite compensating victims has multiplied. Moreover, lucrative misconduct represents a challenge in economies where the threat of legal sanctions no longer suffices to dissuade powerful economic operators with substantial financial capacities from disregarding the law, fundamental rights and ethics for reasons of economic efficiency, profitability and profit.
Therefore, the question of whether to implement a more repressive regime has led to discussions for several years.
The introduction of this civil penalty for lucrative misconduct marks a significant departure from the principle of full compensation that has long characterised French civil liability law, representing a major turning point in how the French legal system addresses wrongdoing.
Background: a long-awaited reform
Article 1254 represents the culmination of decades of scholarly discussion rather than a sudden innovation.
The question of lucrative misconduct and its integration into the French Civil Code has been the subject of extensive doctrinal debate for many years on two major points:
Definition of lucrative misconduct
The definition of lucrative fault was subject to debate, based essentially on two competing approaches.
Sanctions for lucrative misconduct
As explained above, French civil liability law adheres strictly to the principle of full compensation, precluding punitive awards to victims. Therefore, further debate took place on the appropriate sanction for lucrative misconduct, as it needed to be coherent with the French legal system into which it would be integrated.
Different approaches were expressed. Some authors were in favour of punitive damages, which would represent a complete departure from the French legal system. Others preferred that the amount of the civil penalty that would go beyond what is necessary to restore the victim’s pre-harm situation would be attributed to the victim. Other authors argued for a civil penalty that would be distinct from the victim’s compensation.
Previous reform attempts
Although Article 1254 appears as an innovation in the French legal system, it should be noted that previous reforms had already attempted to address lucrative misconduct but did not reach completion.
For example, in 2005, the “Catala” project envisioned punitive awards with partial allocation to state coffers rather than victims, providing that the “author of a manifestly deliberate offence, and in particular a lucrative offence, may be ordered to pay, in addition to compensatory damages, punitive damages, part of which the judge may award to the public treasury”.
On the other hand, in 2008, the “Terré” project favoured giving an option to the victim, stating: “In cases of fraud, the creditor of the unperformed obligation may prefer to request the court to order the debtor to pay all or part of the profit derived from the non-performance.”
Finally, another project dated 13 March 2017 proposed a civil penalty rather than punitive damages, specifying that the amount of the civil penalty shall be allocated to the funding of a compensation fund related to the nature of the damage suffered, or, failing that, to the Public Treasury.
European influence
Ultimately, Article 1254 emerged under the influence of European Union law, through Law No 2025-391 of 30 April 2025, which transposed Directive 2020/1828 on representative actions for consumer protection.
One may be surprised that Article 1254 stems from this Directive, as it aims to ensure that a representative action mechanism for the protection of the collective interests of consumers is available in all member states, and focuses on creating procedural mechanisms that allow qualified entities to bring collective actions on behalf of consumers rather than introducing civil penalties for lucrative misconduct.
Understanding lucrative misconduct
Provisions relating to lucrative fault
Article 1254 of the French Civil Code ultimately enshrines a subjective definition of lucrative misconduct with a sanction in the form of a civil penalty, providing that “Where a person is found liable for a breach of legal or contractual obligations relating to their professional activity, the judge may, at the request of the public prosecutor, order them to pay a civil penalty, the proceeds of which shall be allocated to a fund dedicated to the financing of collective actions”.
It also states that the order to pay the civil penalty may only be made if the following conditions are met:
Under Article 1254, the “amount of the penalty shall be proportionate to the seriousness of the fault committed and to the profit derived therefrom by the perpetrator of the fault. If the latter is a natural person, this amount may not exceed twice the profit made. If the perpetrator is a legal person, this amount may not exceed five times the amount of the profit made”.
It also states that the total amount of fines imposed in situations where a civil penalty is combined with an administrative or criminal penalty, by reason of the same facts, shall not exceed the highest statutory maximum. In addition, it is not possible to insure against the risk of being ordered to pay the civil penalty.
Conditions for applying the civil penalty
Lucrative misconduct contains three essential characteristics:
Legal element: any fault
The legal element of lucrative misconduct is a fault, which is defined as a breach of a legal or contractual obligation by a professional related to their professional activity.
Because lucrative fault can appear in multiple contexts and can manifest differently across economic sectors and regulatory regimes, Article 1254 proposes a broad definition of fault that is not restricted to a particular area. This means that any legal obligation is a possible legal element of lucrative fault, and that the source of the obligation that is breached is irrelevant.
However, one limit lies in the requirement that the breach of legal or contractual obligations must be related to the wrongdoer’s professional activity.
Moral element: deliberate intent with a view to obtaining gain or saving
The second condition concerns the moral element – ie, intent. The breach must be deliberately committed with a view to obtaining undue gain or savings. This criterion actually divides into two aspects.
Overall, the intentional element is directed toward securing undue gain from the deliberate breach, which distinguishes lucrative misconduct from other qualified civil faults, establishing it as a specific form of intentional wrongdoing.
Material element: profit and serial damage
The final criterion of lucrative misconduct concerns the causal element of the fault and the intent, which also divides into two results.
However, one might wonder whether the requirement of serial damages is welcome, as it creates a significant limitation: if one breaches a contractual or legal obligation to make profits or avoid costs but that fault causes harm only to one person, no civil penalty could be imposed. In one way, it leaves open the possibility to commit a lucrative fault without being sanctioned when committed against a single person.
The civil penalty
Nature of the sanction
Article 1254 characterises the sanction as a civil penalty. If the civil penalty is equal only to the undue profit, it is purely confiscatory and the aim is only to prevent the wrongdoer from profiting from their wrong. It thus escapes being characterised as a punitive sanction.
The civil penalty can be multiplied but cannot exceed twice the profit obtained if the wrongdoer is an individual, or five times the profit obtained if the wrongdoer is a legal entity. In this context, the civil penalty could exceed the undue profit made by the wrongdoers and could be considered a punitive sanction.
In reality, the nature of the civil penalty will depend on its quantum.
Assessment of the civil penalty
Article 1254 provides that the amount of the civil penalty is calculated based on the seriousness of the breach and the profit obtained by the person who committed the breach, but it cannot exceed a certain amount.
Determining seriousness of the breach
The amount would normally be assessed based on the circumstances of each case, and may take into consideration the extent of damage, the strategies used to circumvent the law, and/or the methods employed to conceal fraud.
Determining the profit obtained by the person who committed the breach
This assessment actually requires proceeding with an economic analysis that will depend on each case. The doctrine currently states that two methods could be applied:
Capped amount and multiplier coefficient
Article 1254 provides for a capped amount and a multiplier coefficient in assessing the civil penalty, as follows:
The amount of the civil penalty can be substantial, particularly for legal entities, where it can reach up to five times the profit obtained. This significant multiplier coefficient ensures that the civil penalty serves as an effective deterrent against lucrative misconduct.
Furthermore, the absence of a fixed limitation and the proportional nature of the civil penalty, combined with multiplier coefficients, make it difficult for wrongdoers to anticipate the exact amount they could be ordered to pay and therefore the net profit they might still derive from the breach.
Procedural limitations
Despite its broad applicability, Article 1254 contains procedural restrictions that may limit its effectiveness.
Sanctions imposed upon request
One limitation is the impossibility for the judge to resort to the civil penalty on his or her own initiative; it can only be imposed upon request from the public prosecutor before judicial courts, or from the government before administrative courts.
Neither the victim, any potential third-party funder nor the fund to which the sanction proceeds could be paid are admitted to request it. Private parties cannot initiate these proceedings.
Whilst this limitation can be criticised, it is important to remember that the primary purpose of the civil penalty is to deter and/or sanction the wrongdoers rather than provide compensation, which explains why victims cannot request its application and why it cannot be imposed on judicial initiative.
Special motivation requirement
Another limitation to Article 1254’s effectiveness is that it provides for a specially motivated decision by the judge to order the perpetrator of a lucrative fault to pay a civil penalty.
Article 1254 does not provide guidelines to determine what constitutes a specially motivated decision, and because this is the first time such a requirement has been provided in obligations law, it could be seen as a procedural limitation. Some authors have expressed their surprise at this requirement but have explained it through the nature of the civil penalty: as the sanction has a strong punitive character, it can only be pronounced through a specially motivated decision.
Moreover, the express obligation for judges to provide reasoning for civil penalties is an essential guarantee of the right to a fair trial and involves the characterisation of lucrative misconduct and evaluation of the quantum, including quantification of illicit profit and particular circumstances justifying the multiplicative coefficient.
Allocation and non-insurability
Regarding the proceeds from the civil penalty, two elements must be noted.
However, some authors are not convinced by this prohibition: lucrative misconduct requires an intentional fault, meaning that it must have been deliberately committed with a view to obtaining an undue gain or saving. In this context, one can wonder whether it is not necessarily uninsurable, as insurance covers events that are random.
Practical implications and effectiveness
Effectiveness
Multiple concerns about the effectiveness of Article 1254 have been expressed.
The civil sanctions are imposed upon request and are reserved to the public prosecutor. In this context, it is plausible that they will only be set in motion in rare high-profile trials, and might render Article 1254 less effective in practice for at least two reasons:
The amount that the wrongdoer will be ordered to pay is assessed based on the profit obtained from its lucrative misconduct. However, it is possible that lucrative misconduct without generating significant profits may still constitute a serious breach in that it endangers others. In that case, the low profit obtained by the person who committed the breach will cap the amount of the civil penalty.
Deterrence
Article 1254 aims to dissuade economic actors from disregarding the law to optimise gain by imposing a sanction that deprives them of their gain.
However, one can wonder whether Article 1254 will be able to meet that purpose, because those who derive profits from lucrative misconduct would necessarily be individuals and not legal entities, as there is no lucrative misconduct without human intelligence; the deterrence of Article 1254 can only be effective if individuals are involved, and not only legal entities.
Moreover, based on comparative law, certain authors consider that the deterrent effect is more impactful in countries where punitive damages are allowed. As the French legal system is reluctant regarding punitive damages, the choice has been made to consider the sanction as a civil penalty.
Conclusion
The recognition of profitable misconduct in the Civil Code has been celebrated by many, for the following reasons:
Article 1254 represents a significant evolution in French civil liability law. The introduction of profitable misconduct and its confiscatory sanction into the Civil Code marks a significant departure from civil liability law, which has traditionally been centred on damage reparation.
Only the future will tell whether this recognition will significantly impact France’s legal attractiveness and prove effective, depending on how courts and prosecutors take hold of this article, and on judicial interpretation and enforcement practices.