FRANCE Law and Practice Contributed by: Thierry Marembert, Cécile Labarbe and Céline Serpagli, Kiejman & Marembert
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
must do it themselves and may not ask their lawyer to do so. A number of concerns have been raised regarding third-party funding in international arbitrations. The ICC and the Paris Bar Association, among others, have highlighted the risks associated with non-dis- closure of third-party funding agreements, especially regarding the potential annulment of the award and/or obstacles to its enforcement, and have recommended that the funded party’s attorney encourages their cli- ent to disclose the existence of such an agreement. 2.2 Third-Party Funding: Lawsuits Since third-party litigation funding is unregulated, there are no restrictions on the types of lawsuits that can be funded. 2.3 Third-Party Funding for Plaintiff and Defendant As third-party litigation funding is unregulated, it seems to be available to both the plaintiff and the defendant. 2.4 Minimum and Maximum Amounts of Third-Party Funding There is no legal limitation on the minimum and maxi- mum amounts that can be provided by a third party. 2.5 Types of Costs Considered Under Third- Party Funding As court fees are relatively low, a third-party funder might consider covering legal fees in addition to the cost of legal opinions or experts, if necessary. 2.6 Contingency Fees Article 11.3 of the Règlement Intérieur National pro- hibits pure contingency fee arrangements. However, attorneys may charge success fees that represent a portion of the total fees. 2.7 Time Limit for Obtaining Third-Party Funding As third-party funding remains unregulated, there is no time limit within which a party to litigation should obtain third-party funding.
Although not mandatory, it is highly recommended to send a formal notice to the defendant ( mise en demeure ) before initiating a lawsuit. The date of such notice serves as a starting point for calculating legal interest when payments are due. The defendant is under no obligation to reply to a formal notice. In certain cases, such as civil disputes under EUR5,000 or neighbourhood disputes, the claimant must first attempt to resolve the dispute amicably before initiat- ing a lawsuit, and then mention in the summons the steps taken to reach an amicable agreement; other- wise, the summons may be ruled inadmissible. 3.2 Statutes of Limitations The common civil limitation period is five years but might be only three months in defamation cases. The limitation period starts from the day the claimant knew, or should have known, the facts giving rise to the cause of action. This limitation period may, to a certain degree, be reduced or extended contractually (by no less than a year and no more than ten years). A legal action, even in summary proceedings, inter- rupts the statute of limitations. 3.3 Jurisdictional Requirements for a Defendant Before initiating a lawsuit, the claimant must deter- mine which court has jurisdiction over the case, con- sidering the subject matter, the territorial jurisdiction rules and the quantum of the claims. Regarding subject matter, several courts have exclu- sive jurisdiction in certain areas. For instance, labour courts have exclusive jurisdiction for most work relationship disputes, while commercial courts have exclusive jurisdiction when commercial parties are involved. Tribunaux judiciaires have exclusive jurisdic- tion over certain litigation, such as intellectual property disputes, personal civil status claims, estate disputes or exequatur. In contrast to other courts, parties must be represented by an attorney before tribunaux judi- ciaires or tribunaux de commerce for specific matters,
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