Review by the Court of Appeal When Seized
Droit Immobilier

Review by the Court of Appeal When Seized

📅 Décision du 20 February 1991⚖️ Cour de cassation📖 2 min de lecture

The review by the court of appeal, when seized of an application to set aside an arbitral award based on article 1484-6° of the new Code of Civil Procedure, must concern not the characterisation given by the arbitrators to the contract binding the parties, even if it is claimed that the contract is governed by provisions of public policy, but rather the resolution of the dispute, annulment being incurred only to the extent that such resolution contravenes public policy.

Reference decision: Cass. • No. 89-19.159 • 20 February 1991 • View the decision →

This decision sheds important light on your property law. Here is what it changes for you.

The situation

The review by the court of appeal, when seized of an application to set aside an arbitral award based on article 1484-6° of the new Code of Civil Procedure, must concern not the characterisation given by the arbitrators to the contract binding the parties, even if it is claimed that the contract is governed by provisions of public policy, but rather the resolution of the dispute, annulment being incurred only to the extent that such resolution contravenes public policy.

What the law says

This decision confirms the fundamental principles of property law.

Key points

  • Scrupulously respect the statutory time limits for appeals
  • Keep all your supporting documents (title deeds, contracts, correspondence)
  • Plan ahead: preventive advice is always cheaper than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.

📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Informations juridiques

  • Numéro: 89-19.159
  • Juridiction: Cour de cassation
  • Date de décision: 20 février 1991

Mots-clés

droit immobilierjurisprudenceimmobilier

Cas d'usage pratiques

1

Developer challenges unfair construction arbitration award in Paris

A property developer in Paris contracted a builder for a €5 million luxury apartment block. After completion, serious defects worth €800,000 emerged. The contract's arbitration clause led to an award on 15 January 2024, dismissing the developer's claims almost entirely. The developer believes the arbitrator misclassified the contract and failed to apply mandatory insurance rules.

Application pratique:

Under the Cass. 20 Feb 1991 ruling, the Paris Court of Appeal will not re-examine whether the contract was a 'sale of future thing' or a 'construction contract'. Instead, it will only annul the award if the outcome violates French public policy. Focus your challenge on demonstrating that the award permits a breach of mandatory construction insurance laws (e.g., Law Spinetta 78-12). File your annulment request at the Court of Appeal within one month of award notification (by 15 February 2024). Keep all technical reports and correspondence to prove the public policy violation.

2

First-time buyer seeks to overturn low arbitration award in Lyon

A first-time buyer in Lyon purchased a flat off-plan (VEFA) for €350,000. The scheduled June 2023 delivery was delayed until December 2023, with multiple defects. The contract mandated arbitration, and on 10 March 2024, the arbitrator awarded only €5,000 in compensation. The buyer argues that French consumer protection law (public policy) entitles them to penalties worth 10% of the price.

Application pratique:

The decision of 20 February 1991 means the Lyon Court of Appeal will not reassess the arbitrator's classification of the contract but will verify if the award contravenes mandatory consumer protection rules. Your annulment application must pinpoint exactly how the award's resolution allows a violation of public policy—here, by effectively nullifying the mandatory delivery-date guarantees under the French Construction and Housing Code. Lodge your appeal within the strict one-month deadline (by 10 April 2024). Assemble all VEFA documents, delivery notices, and evidence of the public policy provisions breached.

3

Co-owner in Nice challenges arbitration ruling on roof terrace

In a 20-unit condominium in Nice, one co-owner built a private terrace on a roof area classified as common. The condominium rules contained an arbitration clause, and on 1 April 2024 an award allowed the construction. Dissenting co-owners claim this violates the French co-ownership statute's public policy requirement of unanimous consent for altering common parts.

Application pratique:

Based on the Cass. 1991 principle, the Aix-en-Provence Court of Appeal (with jurisdiction over Nice) will not reconsider whether the roof area was correctly designated as common or private. Annulment will only succeed if you prove that the award itself contravenes public policy—specifically, the absolute rule under Law 65-557 that any modification of common areas requires all co-owners' agreement. Focus your challenge on how the award's enforcement would flout this mandatory provision. File within one month (by 1 May 2024) and include the co-ownership rules, the arbitration award, and a precise citation of the statutory breach.

Maître Cécile Zakine

À propos de l'auteur

Maître Cécile Zakine — Avocate au Barreau des Alpes-Maritimes, Docteur en Droit. Chaque article de ce magazine est rédigé à partir de l'analyse d'une décision de jurisprudence réelle, commentée et mise en perspective par les équipes de Maître Zakine.

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