In a judgment of 24 May 2017 (Biogaran v International Drug Development, case n° 15-25.457), the commercial chamber of the French Cour de Cassation (Supreme Court) considered the question of whether a counterclaimant is bound by the requirements of a “multi-tier” dispute resolution clause. The clause in question required the parties to mediate as a…

Escalation clauses (or multi-tiered dispute resolution clauses) need careful drafting so that the wording is both enforceable and commercially useful – and does not produce unexpected surprises. With regard to clauses that provide for ‘final’ dispute resolution by means of arbitration, in particular, there is uncertainty as to the consequences of the parties’ failure to…

On 29 April 2014, the French Cour de cassation made a decision on the criteria a multi-tiered dispute resolution clause (“multi-tiered clause”) should meet to render claims inadmissible if disregarded. In this case, Medissimo, a pharmaceutical company, entered into a contract with Logica, an IT company, to outsource the maintenance of a software program and…