Report No. 188

France:

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A Bill was presented to the Council of Ministers on July 18, 2000 for 'carrying reform of the Commercial Courts'. The reform is now in the first phase, under the decree no. 94-659 of July 30, 1999, modifying the chart of these jurisdictions.

These changes in the commercial courts were envisaged to come into effect from January 1, 2002. The Bill provided for (1) the Constitution of mixed rooms in those jurisdictions, (2) capacities of the president of the commercial court and (3) the statute of the elected judges.

The proposal was that each commercial court should have mixed rooms of these jurisdictions and that they will consist of a magistrate and two elected judges as assessors. The magistrates are appointed for 3 years. The mixed rooms will apply collective procedures in relation to the whole of the litigations relating to the deed of commercial partnership or economic grouping of interest to the commercial object (constitution, operation, liquidation, etc.) of disputes relating to financial instruments defined by the law of July 2, 1996; and disputes relating to the application of the Ordinance of December 1, 1986 relating to the freedom of prices and competitions and Articles 81 and 82 of the treaty establishing the European Community.

As regards corrective procedures, "functions of Judge, police chief in whom economic dimension" is prevalent will remain exerted by an elected judge.

The court also exercises bankruptcy jurisdiction.

The Bill modifies the ler Title of Book IV of the Code of Legal Organisations. Article 2 of the Bill relating to the amendments states that the Commercial Courts are made up of jurisdictions of first authority magistrates of the seat pertaining to the legal body, the elected judges and of a clerk. The appeals are carried to the Court of Appeal. As per one of the clauses of Article 1, the commercial courts deal with

(1) disputes relating to engagements between tradesmen and credit institutions;

(2) disputes relating to commercial companies and

(3) disputes arising out of commercial transactions between all people. The Court also deals with disputes arising out of promissory notes.

However, parties can refer these disputes to referees.

Under Article 4, the judgments of commercial courts are given by the Judges sitting in an odd number, at least three. The Bill envisages a detailed procedure for disposal.