Medici Alert📣 #Exequatur and #Statute of Limitations – What is the statute of limitations for requesting the exequatur of a foreign arbitral award? 5 years, according to the Versailles Court of Appeal’s decision dated December 10, 2024 (Case No. 23/03647).
ℹ️ Context: This decision fills a legal gap: until now, case law had only addressed the statute of limitations for requesting the exequatur of a foreign judgment and had ruled in this regard that no statute of limitations applied. However, there was no mention of the exequatur of arbitral awards (Civ. 1, January 11, 2023, Case No. 21-21.168).
✅ Solution: The Court of Appeal thus ruled that the general statute of limitations period of 5 years (Article 2224 of the civil code) applies for requesting the exequatur of an award – foreign in this case. One should bear in mind that this period is distinct from the one applicable to the enforcement of an award after its exequatur, which is 10 years (Article L. 111-4 of the Civil Code of Enforcement Procedures – “CCEP”).
To reach this conclusion, the Court:
- Exclude the law of the country where the arbitration seat is located (in this case, New York) in favor of the independence of the award from any state legal system;
- Concludes that the action for the exequatur of an arbitral award, unlike that of a foreign judgment, must be subject to a statute of limitations; otherwise, it would be imprescriptible and therefore contrary to French international public policy;
- Applies the general 5-year statute of limitations because (a) the 10-year period provided by Article L. 111-4 CCEP does not apply since the award is not yet enforceable and (b) the action for exequatur falls within the category of actions covered by Article 2224 of the Civil Code.
Finally, the Court specifies that the statute of limitations begins to run from the date of the award – not from its notification.
➡️ Impact: Will the solution adopted by the Court for foreign awards apply to awards rendered in France? This question arises because the nature of the recourses against these two types of awards is not identical and thus the solution adopted for foreign awards may not necessarily apply to awards rendered in France. Will the Working Group on the reform of French arbitration law address this issue?
Caroline Duclercq and Valérie Kasparian