Case Study: International Arbitration and Dispute Resolution Analysis

This case study analyzes a dispute between Bricks and Mortar (Bricks) and Jovella International concerning an extension built by Bricks at Jovella's Paris headquarters. The extension suffered water damage, leading Jovella to refuse payment, blaming Bricks' workmanship. Bricks, in turn, blames Nuts and Bolts (Nuts), another contractor hired by Jovella, for improper ground preparation. The contract between Bricks and Jovella includes an arbitration clause seated in London, while the Jovella-Nuts contract does not. The analysis considers the application of the Arbitration Act 1996, the role of Parisian Courts, and the French legal system's approach to commercial disputes. It explores options available to Bricks, including arbitration and litigation, and discusses potential claims based on French tort law. The conclusion highlights the effectiveness of international arbitration in resolving complex business disputes and the increasing prominence of arbitration institutions in France. This document is a student contribution and similar solved assignments are available on Desklib.

Running head: INTERNATIONAL ARBITRATION
International Arbitration
Name of the Student
Name of the University
Author Note

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Situation Analysis:
After evaluating the given case study, it can be stated that the incident took place at the
headquarters of Paris of both the companies. There was an arbitration agreement between Bricks
and Jovella which was arranged to be seated in London. However, there was no presence of
arbitration clause in the contract between Jovella and Nuts. The Arbitration Act 1996 provides
that in the absence of any arbitral clause in the agreement, the contract is declared to be void by
the courts (Goode 2014). Therefore the provisions of the Arbitration Act 1996, has to be applied
in answering the situations arising out of the case study.
Answer 1:
The Parisian Courts must determine the purposes of the Arbitration Act and therefore
allow the parties- Bricks and Jovella to resolve their disputes through the process of arbitration.
It can be observed that the UNCITRAL Model Law has not been adopted by France.
Therefore, the legal framework of France undermines the Articles 2059 and 2061 of the Code of
Civil Procedure in order to regulate the matters regarding domestic and international arbitration
(Gaillard 2014). The Parisian Court of Session deals with both the domestic and international
arbitration. A matter of arbitration is deemed to be international when the international
commercial interests are at loss according to Article 1504 of the Code of Civil Procedure
(Trakman 2014). However, disputes regarding transaction do not necessarily occur in a particular
country. In Fulham Football Club (1987) Limited v (1) J. Sir David Richards and (2) The
Football Association Premium League Limited [2011] EWCA Civ 855, the Parisian Court of
Session decided that commercial disputes can be arbitrated as the process of litigation is time
consuming.

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Answer 2:
Since time immemorial, the tradition of civil law is followed by the French legal system
which is divided into private and public law. The commercial matters are mainly governed by the
private law. The court system of France determines disputes regarding commercial matters
through a three-tier structure (Gaillard 2014). The commercial courts are at the authority to deal
with disputes regarding commercial deeds, invoice and bills of exchange. In the second stage, the
Court of Appeals deals with the decisions filed by the commercial courts. In the final stage, the
role of Court of Cassation is to review the process of the lower courts and tribunals which has
been applied for judicial review. In this regard, it is noteworthy to mention here that the process
of litigation in the French legal system is lengthy, complex and time consuming (Trakman 2014).
Therefore, most of the commercial disputes are settled through arbitration proceedings.
From the very beginning, France has been a member of various International
Conventions in order to recognize the scope and enforcement of foreign arbitral awards. Since
time immemorial, the process of arbitration has proved to be beneficial. The process of
arbitration is independent and has been operated in order to ensure justice which was held in
Fiona Trust & Holding Corporation v. Privalov (2007) UKHL 40. However, the French legal
system is not at the authority to enforce an arbitral directly. Arbitral award can be enforced by
the French legal system by complying with the French international public policy (Brekoulakis
2013). Therefore, in the absence of court action, where Jovella has already initiated arbitral
proceedings against Bricks, two options are available to Bricks. The first one is arbitration and
the second is litigation. It is important that Bricks should initiate proceedings of arbitration rather
than litigation. This is because the proceedings of litigation are quite time consuming while the

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proceedings of arbitration completed within short span of time. In this regard, it is noteworthy to
mention here that, an arbitral award is final and is binding upon the parties.
Answer 3:
French civil liability from the very beginning is divided between the concepts of tort law
and contract law. However, according to the principles of French Law, the wrongdoer does not
need to be concerned about the wrongful nature of the act. In case of French tort law, the
defendant does not owe duty of care towards the plaintiff. The damage caused to the plaintiff and
the proof of fault is sufficient to claim damages in tort. Therefore, in the present case study it can
be stated that there may be a claim based on tort and therefore Bricks can claim compensation
for damages from Jovella.
Conclusion:
In the conclusion, it can be stated that traditionally the French legal system follows the
tradition of civil law. The commercial disputes were resolved through the process of litigation
which was quite time consuming. However, in case of business relationships which are complex
and of international origin, the process of arbitration has been effective in solving their disputes.
The legal system of France has been formulated in such a way so that it promotes the need of
international arbitration. In this regard, it is noteworthy to mention that in modern trends, various
institutions of arbitration have been settled in France in order to carry on proceedings of
arbitration effectively.

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References:
Brekoulakis, S.L., 2013. International Arbitration Scholarship and the Concept of Arbitration
Law. Fordham Int'l LJ, 36, p.745.
Fiona Trust & Holding Corporation v. Privalov (2007) UKHL 40.
Fulham Football Club (1987) Limited v (1) J. Sir David Richards and (2) The Football
Association Premium League Limited [2011] EWCA Civ 855.
Gaillard, E., 2014. Transnational Law: A Legal System or a Method of Decision
Making?. Arbitration International, 17(1), pp.59-72.
Goode, R., 2014. The role of the lex loci arbitri in international commercial
arbitration. Arbitration International, 17(1), pp.19-40.
Trakman, L.E., 2014. Confidentiality in international commercial arbitration. Arbitration
International, 18(1), pp.1-18.