FRANCE Law and Practice Contributed by: Samuel Sauphanor, Alexandra Szekely, Timothée de Saint Viance and Benoît Barré, Le 16 Law
Civil Route – Protective Seizures Under Article L.511-1 of the French Code of Civil Enforcement Procedures, a creditor may seek authorisation to impose conservatory measures ( mesures conservatoires ), such as asset freez - es or judicial liens, without prior notice to the debtor. To obtain this authorisation, the claimant must demonstrate that the claim appears well- founded in principle and that there is a legitimate risk of non-recovery. These measures attach directly to the debtor’s assets (bank accounts, movable property, real estate) and the request is typically submitted ex parte to preserve the element of surprise. No cross-undertaking in damages is required but the creditor may be held liable under Article L.512-2 if the seizure causes undue harm and the measure is ultimately lifted. If a third party (eg, a bank) is subject to the sei - zure, it is required to co-operate with the enforc - ing bailiff ( commissaire de justice ) and disclose relevant information. Failure to comply, or pro - viding false or incomplete data, may result in financial liability and, in some cases, criminal sanctions under Articles R.523-4 and R.523-5 of the French Civil Procedure Code. Any per - son who intentionally diverts or destroys seized property may face up to three years in jail and a fine of EUR375,000 under Article 314-6 of the French Criminal Code. Criminal Route – Seizure of Criminal Assets In criminal proceedings, prosecutors and inves - tigating judges may order asset freezes as part of the investigation. These can be implemented at any stage, including pre-indictment, under Articles 706-141 et seq of the French Criminal Procedure Code. The purpose is to secure the proceeds or instrumentalities of the offence, with a view to eventual confiscation or restitu -
tion. These criminal measures are independent of civil enforcement actions and follow their own procedural rules. Cross-Undertaking in Damages French law does not recognise the common law concept of a cross-undertaking in dam - ages. However, the judge retains discretion to impose sanctions or indemnities on claimants who abuse the conservatory process or act in bad faith. 2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets French law does not provide for a general dis - covery mechanism compelling a defendant to disclose the full extent of their assets. Asset disclosure is not a routine part of litigation and there is no equivalent to common law disclo - sure or discovery obligations. Asset identifica - tion must instead be pursued through targeted procedural tools, often without the co-operation of the defendant. Banking Secrecy and Limitations The principle of banking secrecy, enshrined in Article L.511-33 of the French Monetary and Financial Code, limits access to information held by financial institutions. This can significantly restrict a claimant’s ability to trace or identify the defendant’s assets, particularly in civil matters. Judges are reluctant to override this secrecy without a clear and compelling legal basis. Pre-Litigation Measures to Identify Assets While French law does not mandate asset dis - closure, Article 145 of the French Civil Procedure Code provides a strategic entry point. It allows parties to obtain pre-action investigative meas - ures, typically through an ex parte application,
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