SPOTLIGHT #14: French Arbitration Law Overhaul: Key Proposals of the 2025 Reform

SPOTLIGHT #14: French Arbitration Law Overhaul: Key Proposals of the 2025 Reform

At Lead up, we are committed to providing our clients with the most innovative conflict resolution solutions tailored to their specific industry contexts. To achieve this, we stay abreast of the latest developments in our clients’ sectors and analyze these changes in relation to their needs. Each month, in the “Lead up Spotlight,” we share with our colleagues, clients, and potential partners—our analysis of a recent development related to conflict resolution in a sector that matters to us and our clients.

This month’s “Lead up Spotlight” focuses on the report that was submitted on 20 March 2025 to the French Minister of Justice proposing an ambitious reform of French arbitration law. This reform aims to modernize, clarify, and enhance the efficiency of arbitration while consolidating its autonomy through the creation of a dedicated code. We summarize below the key points of this report:

1. Towards an Autonomous Arbitration Code

The report proposes the establishment of a distinct arbitration code, composed of 146 articles based on 40 proposals introduced by the working committee. This initiative seeks to clarify and unify the applicable rules by consolidating the current scattered provisions and affirming the autonomy of arbitration law.

2. Harmonization of Domestic and International Rules

A major proposal is the harmonization of domestic and international arbitration rules. The report suggests that international arbitration rules should also apply to domestic arbitration, except in specific cases, to simplify the legal framework and strengthen the coherence of arbitration law.

3. Simplification and Modernization of Procedures

To make arbitration more accessible, the report proposes eliminating certain formalities, such as the requirement for a written arbitration clause, and recognizing the validity of electronic awards. These measures aim to modernize procedures and adapt them to technological advancements.

4. Strengthening Procedural Guarantees

The report emphasizes the need to reinforce procedural guarantees, particularly by affirming the independence and impartiality of arbitrators. It also proposes measures to protect vulnerable parties, such as introducing provisions to address the genuine financial incapacity of a party and eliminating the possibility of waiving the right to engage an annulment proceeding in advance against an international arbitral award

5. Increased Efficiency of Arbitration

To enhance the efficiency of arbitration, the report suggests reinforcing the competence-competence principle, allowing the arbitral tribunal to rule on its own jurisdiction. It also proposes enabling the tribunal to consolidate related disputes into a single procedure and requiring parties to present all their claims and defenses during the arbitration process, under penalty of inadmissibility.

6. Enhanced Role of the Support Judge

The report proposes expanding the powers of the support judge (“juge d’appui”) to prevent any denial of justice, ensure respect for equality and the parties’ intentions, and intervene in cases of a party’s genuine financial incapacity. This measure aims to provide effective judicial support to the arbitral process.

7. Recognition and Enforcement of Arbitral Awards

The report proposes clarifying the distinction between recognition and enforcement of arbitral awards, allowing for autonomous recognition, including for foreign awards. It suggests removing the suspensive effect of annulment appeals in domestic cases and clarifying the exequatur process by specifying the roles of the first president and the reporting judge. Additionally, it recommends initiating appeals against orders refusing recognition or exequatur from the date of the decision and addressing the impact of annulling an award on subsequent awards to prevent unnecessary judicial intervention.

8. Centralization of  Para-arbitral proceedings in International Arbitration

The report supports the centralization of every para-arbitral proceeding such as recognition, enforcement or annulment  of international arbitration award before the Paris Court of Appeal, equipped with an international commercial chamber. This measure aims to enhance France’s attractiveness in international arbitration by providing a specialized jurisdiction and ensuring consistent jurisprudence.

These proposals aim to modernize French arbitration law, making it more accessible and efficient while strengthening procedural guarantees and enhancing France’s international attractiveness in this field.