FRANCE: Tribunaux des activités économiques - Economic Activities Courts

Law No. 2023-1059 of November 20, 2023, on the orientation and programming of the Ministry of Justice for 2023-2027 has introduced, on an experimental basis for a period of four years starting from January 1, 2025, Economic Activities Courts ("EAC") to replace the following 12 commercial courts: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc, and Versailles.

It is worth noting that many of these courts handle maritime and transport cases, and three of them are located in the cities where the headquarters of France’s major transport insurance companies are based.

This new development carries several consequences:

1 – Increased Procedural Costs

Bringing a case before these courts will be subject to the payment of a contribution for economic justice ("CJE"), failing which the claim may be deemed inadmissible by the judge, even ex officio. The court registry will collect this contribution and transfer it quarterly to the general budget of the State.

Article 27 of Law No. 2023-1059 of November 20, 2023, and Decree No. 2024-1225 of December 30, 2024, have defined the basis of this contribution. It must be paid by the claimant when the total value of the main claim exceeds €50,000 (excluding amounts claimed under Article 700 of the French Code of Civil Procedure). If there are multiple claimants, each will have to pay the contribution if their claim exceeds €50,000.

The CJE will apply to individuals or legal entities employing more than 250 employees. Depending on the company's size, the contribution will range from 3% to 5% of the amount claimed, capped at €100,000.

For the criteria determining the amount of the CJE (turnover, average annual profit for legal entities, reference taxable income for individuals), refer to Article 27 of the law and the decree of December 30, 2024:??https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000050870748

For example, an insurance company with a turnover exceeding €1.5 billion and intending to file a principal claim of €3 million will be required to pay a CJE of €100,000. (For comparison, an equivalent claim before the Paris Maritime Arbitration Chamber would result in arbitration costs of €59,100).

This contribution will only be refundable if the case is terminated due to withdrawal or if a settlement is reached through an amicable dispute resolution method that ends the litigation.

2 – New Designation

Contracts containing jurisdiction clauses in favor of the affected courts will need to be amended, with the clause now referring to the "Economic Activities Court of [city]."

Similarly, procedural documents must be addressed to the "Economic Activities Court of [city]" instead of the commercial court.

3 – Expanded Jurisdiction Over Insolvency Proceedings

Insolvency proceedings involving farmers, associations, civil companies, or liberal professions will now fall under the jurisdiction of the new EACs (excluding regulated legal and judicial professions).

Conclusion

This "taxation" of judicial proceedings introduces a new economic consideration when deciding whether to initiate legal action, alongside technical and legal criteria. It is likely to encourage parties to negotiate or resort to alternative dispute resolution methods if they remain cost-effective.

The lawyers at GIE ASTERIAS Avocats (www.asteriaslaw.com) are available for any further information and to assist you in both amicable and judicial proceedings.

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