Banking Litigation in France
Banking Litigation in FranceUpdated on Tuesday 02nd August 2016
based on 1 reviews.
The number of companies and individuals lending money from financial institutions in France has increased a lot during the years before the Euro financial crisis. No matter the reasons and the scopes those loans were contracted for, they have led to the development of the banking industry in France. However, when the crisis hit, a large number of French companies and citizens have entered into conflicts with banks as they could no longer pay their debts. In order to prevent any banking litigation that may appear, the French Banking Law was recently amended in order to provide for easier procedures for companies facing financial difficulties.
Main ways of settling banking disputes in France
The French Civil Code provides for court proceedings as the main method for settling banking litigation. However, when it comes to litigation between companies and banks in France, arbitration, conciliation and mediation are also accepted because of the time and money-saving advantages these offer.
Court proceedings in banking litigation are carried out through the Commercial Courts in France with respect to disputes involving companies. However, banking disputes with awards below 10,000 euros are tried by the first instance civil courts in the country. All appeals on banking matters are heard by the French Court of Cassation.
Our lawyers in France can legally assist you in banking litigation cases.
Alternative methods of resolving French banking litigation
The most employed type of alternative dispute resolution (ADR) method in France is arbitration, especially when it comes to commercial litigation which also comprises banking cases. However, mediation and conciliation are also accepted.
Arbitration implies the parties to consent for the Arbitration Court to resolve the dispute and for the other instances to decline the trial of the case. On the other hand, mediation and conciliation implies the amicable resolution of the banking dispute. Mediation can be ordered by the court or contractual. With respect to the contractual mediation which was introduced in the Civil Code in 2012, the courts can only enforce the agreement the parties have reached.
For complete information on how to resolve banking litigation, do not hesitate to contact our law firm in France.