FRANCE Law and Practice Contributed by: Yves Hénaff d’Estrées, HENAFF D’ESTREES
2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards French courts will recognise and enforce a final judg - ment of a foreign court or an arbitral award without re-examining the merits of the case, once they have verified that due process has been followed, and that no fraud is involved. 2.6.7 Judgments in Foreign Currencies A lessor under an aircraft lease may obtain a judgment in a foreign currency. 2.6.8 Limitations on Lessors’ Actions Following Termination French courts may in certain cases qualify default interest or additional rent as a penalty clause following termination of a lease for default, including where the lessee fails to return the aircraft. French courts may reduce penalty clauses that are considered manifestly excessive, in consideration of the contractual obliga - tions of the parties and the facts of the case. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees A lessor under an aircraft lease is not required to pay taxes or fees in a significant (ie, non-nominal) amount in connection with the recognition and enforcement of such lease in France. 2.6.10 Mandatory Notice Periods French courts may in certain commercial cases declare a contractual clause void where this provides a too-short notice period for terminating an aircraft lease (regardless of its terms), and where this relates to an aircraft operated domestically or leased to a domestic operator. 2.6.11 Lessees’ Entitlement to Claim Immunity A lessee (for example, a government entity) may contractually waive its sovereign immunity from suit (immunity of jurisdiction). The lessee’s waiver of its immunity must be expressed and must describe those of its assets which may be seized in execution of a judicial or arbitral decision. 2.6.12 Enforcement of Foreign Arbitral Decisions The 1958 Convention on the Recognition and Enforce - ment of Foreign Arbitral Awards (the “New York Con - vention”) has been ratified and is in force in France.
French courts will recognise and enforce a foreign arbitral decision, in the absence of fraud and provid - ing the principles of due process have been observed. 2.6.13 Other Relevant Issues In a case where a lessee defaults, it is advisable for the lessor to terminate the lease as soon as contractually possible and also notify the airport where the aircraft is parked of the termination of the lease, in order to limit the risk of being compelled to pay certain of the lessee’s debts, such as French airport charges. 2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation The concepts of contractual assignment and novation are recognised by French jurisdictions. 2.7.2 Assignment/Novation of Leases Under Foreign Laws Assuming that a lessor transferring its rights under an aircraft lease is assigning or novating its rights under such lease to a new lessor, pursuant to a New York or English law-governed assignment and assumption agreement or novation agreement or deed, the agree - ment or deed will be regarded as valid by a domestic court if the lessee is notified thereof, and the lessee’s consent will not be required. When a lessor is assign - ing or novating its obligations under the lease, the lessee’s consent is required, unless the lease pro - vides otherwise. There are no mandatory terms that a French jurisdiction requires to be included in such agreement/deed. 2.7.3 Enforceability of Lease Assignments/ Novations It is not necessary for an aircraft and/or engine lease assignment and assumption/novation to be trans - lated, certified, notarised or legalised to be enforce - able against a domestic party. Translations of such agreements or deeds are generally required only when litigating before French courts. 2.7.4 Filing/Registration of Lease Assignments/
Novations Formalities
When title to an aircraft has been transferred and after the new aircraft owner/lessor has been duly registered
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