E-newsletter  -  October 2015

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Dispute Resolution
Unilateral (or asymmetrical) jurisdiction clauses: Where does the Cour de Cassation (French Supreme Court) stand?

Laure Marolleau

Unilateral (or asymmetrical) jurisdiction clauses may vary in form and nature. However, such clauses always provide for an option to only one of the parties allowing it to choose the court that will be competent in case of a dispute.

The validity of such unilateral jurisdiction clauses has been brought into question by several jurisdictions, starting with the Cour de Cassation (French Supreme Court). In its eBizcuss decision dated October 7, 2015, the Cour de Cassation has provided an answer to the following question: Can a jurisdiction clause allow/enable one of the parties to bring its claims before a court other than the court it designates?

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Business Law
Established business relationships – an elastic concept, on certain conditions

Flore Foyatier

To assess the length of an established business relationship and determine the notice period that ought to be applied prior to the effective termination thereof, the length of the business relationship that preceded the sale of a business going concern must not be taken into account wherever it is not demonstrated that the purchaser of such going concern “had the intent to pursue the business relationships initially developed” between the seller and the terminated party.

This is the finding of the Cour de Cassation (French Supreme Court) in a decision rendered on September 15, 2015.

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Corporate Law
Conquering the UAE through a successful market entry strategy

David Faravelon

Hydrocarbons, new technologies, building and civil engineering works, but also luxury tourism, renewable energies or agribusiness, the United Arab Emirates (the “UAE”) offers tremendous business opportunities for companies and such opportunities are enhanced as a result of the currently pursued policy of economic diversification. In the UAE, generated profits are net of taxes and natural persons and legal entities, with a few exceptions, are not subject to income tax and corporate income tax.

Yet, there is good reason not to rush into this highly competitive market which lies at the crossroads of Europe, Asia and Africa. Haste could lead an investor to opt for an expansion strategy that seems the fastest to implement, but that may be implemented in the wrong place, with a partner that does not meet the investor’s expectations or even through an inappropriate business structure.

Entering the UAE market must be a mature decision and the local factor must be carefully taken into account.

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Experts’ contributions
Les lois de l’adaptation de l’entreprise (étrangère) en France

We are pleased to publish this month a contribution entitled Les lois de l’adaptation de l’entreprise (étrangère ?) en France authored by Mr. Gilles Sabart, Regional Director, Southern East Region, at Alixio, an independent group of consultants specializing in employment strategy and labour legislation, change management and communications.

The life of companies in France does not look like a long quiet river as regulations and other external factors interfere with their internal operation. This is even worse for a company that does not understand the French context, a company that would overestimate or, on the contrary, underestimate such context.

Does it mean that the country where rationality prevails is subject to some form of irrationality or that all of this respond to a coherent system, in particular from a legal standpoint, grounded on the valorization of morality in the French economy? In any case, the one who knows how to take advantage of the system takes the lead.

Read the contribution (in French only)

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