FRANCE Law and Practice Contributed by: Samuel Sauphanor, Alexandra Szekely, Timothée de Saint Viance and Benoît Barré, Le 16 Law
7. Special Rules and Laws 7.1 Rules for Claiming Punitive or Exemplary Damages
6.2 Undermining the Privilege Over Communications Exempt From Discovery or Disclosure In France, legal professional privilege is gov - erned by Article 66-5 of the Law of 31 December 1971 and Article 2.2 of the Règlement Intérieur National (RIN) of the French Bar. It is absolute, general and unlimited in time, applying to all exchanges between a lawyer and their client, whether oral or written, and extending to con - sultations, correspondence, meeting notes and any document prepared in the context of legal advice or representation. It cannot be waived by the client or circumvented through judicial orders. However, where a lawyer is personally implicated in the commission of an offence, such as aiding or abetting fraudulent activity, the protection may be lifted under strict judicial supervision. Searches of law firms are subject to specific procedural safeguards under Article 56-1 of the French Criminal Procedure Code. They must be authorised by a judge, conducted in the presence of the Bâtonnier (head of the Bar) and strictly limited to documents relevant to the offence being investigated. These protections are rigorously applied and enforced. In summary, while French law maintains a robust and categorical approach to legal professional privilege, it does not shield communications that are themselves instrumental to the perpetration of fraud.
Under French law, the concept of punitive or exemplary damages does not exist. Damages awarded in both civil and criminal proceedings are strictly compensatory in nature and must correspond to the actual loss suffered by the vic - tim. Courts are not permitted to award damages intended to punish the wrongdoer or to deter future misconduct beyond the strict measure of harm caused. This principle applies uniformly, including in fraud claims. Whether the action is brought before a civil court under Article 1240 of the French Civil Code or before a criminal court act - ing upon constitution de partie civile , the amount of compensation must reflect proven material or moral damage. The only limited exception arises under the mechanism of the CJIP introduced by the Sap - in II Law. In this context, legal entities under investigation for corruption, influence peddling or related offences may agree to pay a public interest fine of up to 30% of average annual turnover. However, this fine is negotiated with prosecutors, does not constitute judicial dam - ages and is payable to the French Treasury and not to victims. Punitive elements in French enforcement are accordingly reserved for criminal or quasi-crim - inal sanctions imposed by the state and not for private claims for damages. 7.2 Laws to Protect “Banking Secrecy” Banking secrecy is firmly enshrined in French law under Article L.511-33 of the French Mon - etary and Financial Code, which imposes a strict
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