Unfair competition: financial compensation and denigration

While the appropriation of a competitor's confidential information does constitute an act of unfair competition, it does not automatically give rise to compensation for financial loss. Only moral damage is presumed, while any material loss or lost profit must be precisely demonstrated. Defamation can only be characterised as such if it has been made public: …

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Commercial agent or simple service provider? Reality prevails over the contract.

In two recent rulings, the Court of Cassation consistently reiterated that classification depends neither on the contractual designation nor even on the contractual structure of the relationship, but on the reality of the tasks performed, and in particular on the existence of negotiating power, understood broadly. These converging decisions sanction the same error made by …

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Significant imbalance: the absence of economic dependence does not exclude either submission or sanction

In a ruling dated 7 January 2026, the Commercial Chamber confirmed that Article L. 442-6, I, 2° (former) of the Commercial Code does not require any structural asymmetry of economic power between the parties. A distributor may attempt to subject its suppliers to a significant imbalance even when they have strong brands and alternative outlets. …

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Transfer of registered office outside the European Union: no automatic dissolution of the French company

A French company that transfers its registered office to the United Kingdom after Brexit does not automatically lose its legal personality or automatically transfer its assets to the newly created foreign company. The Court of Cassation confirms that, in the absence of a legal framework or a bilateral agreement for cross-border transfers of registered offices, …

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Foreign jurisdiction clause: the indivisibility of the dispute is not sufficient to set it aside

Court of Cassation, First Civil Chamber, 8 October 2025, No. 23-16.756 (partial cassation). The Court of Cassation reiterates a principle of private international law: a validly stipulated foreign jurisdiction clause is binding on French courts, even when the dispute is indivisible between several defendants. In other words, the special jurisdiction of the court of the …

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Exception for non-performance and commercial leases: prior formal notice is not required

Court of Cassation, 3rd Civil Chamber, 18 September 2025, Appeal No. 23-24.005 The tenant in a commercial lease may suspend payment of rent as soon as the premises become unfit for use, without prior formal notice. The facts: commercial premises affected by water infiltration The company Le Bourgeon had leased premises to Ms [D] for …

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Healthcare networks: freedom of association does not justify calls for boycotts

The defence of professional interests cannot justify a collective call for a boycott. The French Union of Dental Surgeons (CDF) has been definitively sanctioned for anti-competitive practices. By encouraging its members to refuse to join healthcare networks such as Santéclair, the union exceeded the limits of freedom of association and committed an infringement of competition law.

A warning to distributors of a risk of counterfeiting without a court ruling constitutes commercial disparagement

The Court of Cassation reiterates that a company cannot warn its competitor's distributors of a risk of counterfeiting in the absence of a court ruling confirming its rights. Such warnings constitute wrongful disparagement, even when they are worded with restraint. Court of Cassation, Commercial, Financial and Economic Chamber, 15 October 2025, No. 24-11.150 The facts: …

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CJEU: Effective Judicial Review of CAS Awards is required by European Law

In its ruling of 1 August 2025, Case C-600/23, Royal Football Club Seraing, the Court of Justice of the European Union (CJEU) established a fundamental principle: courts of the Member States must be able to exercise an effective and thorough judicial review of arbitral awards rendered by the Court of Arbitration for Sport (CAS). 1. …

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Conservatory Arrest of Ships: Strict Application of the 1952 Brussels Convention

The French Supreme Court (Cour de cassation) has provided an important clarification on the legal regime governing the conservatory arrest of ships, reaffirming the primacy and strict application of the International Convention for the Unification of Certain Rules Relating to the Arrest of Seagoing ships, signed in Brussels on 10 May 1952. Cour de cassation …

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