Legal representation before the TAE of Paris

Commercial litigation lawyer in Paris: role, procedure and competent court

A commercial dispute can arise at any time in the life of a business: persistent non-payment, a sudden breakdown in commercial relations, a conflict between partners, or contractual difficulties with a supplier or client. When amicable negotiation fails, the question of the competent court and the method of bringing the case before it becomes central – and procedural errors can have direct consequences on the admissibility of the claim.

In Paris, the jurisdictional landscape for commercial litigation has evolved with the creation of the Tribunal des Activités Économiques (TAE), resulting from an experimental reform introduced by the Act of 20 November 2023. This court, which succeeds the Paris Commercial Court as part of the pilot scheme, has an expanded jurisdiction.

The Economic Activities Court: origins and framework of the pilot scheme

The Economic Activities Court was established by Law No. 2023-1059 of 20 November 2023 on the policy and planning of the Ministry of Justice for the period 2023–2027. This reform introduced a pilot scheme in a limited number of jurisdictions, amongst which Paris features prominently due to the volume and complexity of the commercial cases handled there.

Institutionally, the TAE retains the collegial structure characteristic of the consular court: it is composed of elected consular judges, who are themselves traders or business leaders, ensuring an informed approach to economic realities. This model, unique to France, remains at the heart of the court’s functioning, even under its new name.

The experiment is scheduled to run for a fixed period, at the end of which the legislature is expected to assess whether the reform should be rolled out more widely.

The subject-matter jurisdiction of the Paris TAE: what disputes can it hear?

Traditional commercial disputes

The TAE inherits the historical jurisdiction of the commercial courts, as set out in Articles L. 721-3 et seq. of the Commercial Code. It has jurisdiction to hear disputes relating to:

• commitments between traders, between craftspeople, between credit institutions, between finance companies or between them;
• commercial companies;
• commercial transactions between any persons.

The commercial courts and the TAE are thus competent to hear:

• disputes between partners in a commercial company (SAS, SARL, SA, SNC, etc.), including liability claims against company directors;
• disputes relating to payment instruments and commercial paper: bills of exchange, promissory notes, and cheques under certain conditions;
• actions for the recovery of commercial debts;
• disputes relating to the abrupt termination of established commercial relationships (Article L. 442-1, II of the Commercial Code);
• collective proceedings (sauvegarde, redressement judiciaire, liquidation judiciaire) for companies falling within its jurisdiction.

The extension resulting from the reform: agriculture and the liberal professions

One of the major innovations of the experimental reform is the extension of the TAE’s jurisdiction to economic actors who previously fell under the jurisdiction of other courts – primarily the ordinary courts. For the handling of financial difficulties (early warning procedures, ad hoc mandates, conciliation, safeguard, receivership and compulsory liquidation), the following now fall within the jurisdiction of the TAE:

• farmers (EARLs, GAECs, SCEAs) in the context of their economic activities;
• the liberal professions, with certain exceptions.

The TAE also has extended jurisdiction over commercial leases where the dispute is linked to insolvency proceedings.

The territorial jurisdiction of the Paris TAE

General principle of territorial jurisdiction

The territorial jurisdiction of the Paris Commercial Court (now TAE) is determined by the general rules of the Code of Civil Procedure, combined with the special provisions of the Commercial Code for certain types of disputes.

In contractual matters, the general rule designates the court of the defendant’s domicile or registered office – or, depending on the nature of the dispute and on an optional basis, the place of actual delivery of the goods or performance of the service (Article 46 of the Code of Civil Procedure). For a dispute involving a company with its registered office in Paris, the TAE of Paris will, in principle, have territorial jurisdiction.

Jurisdiction clauses

It is common in contracts between professionals for the parties to include a clause designating territorial jurisdiction. Provided the conditions for the validity of such a clause are met – status as a trader, the clause’s appearance and precision – it may derogate from the statutory rules on jurisdiction.

Mandatory representation by a lawyer before the commercial courts

A paradigm shift

Since 2020, representation by a lawyer has, in principle, been mandatory before the commercial courts (and now the TAE).

It should be noted, however, that in certain cases, representation is not mandatory: it is essential to check, for each type of proceedings brought, the exact rules on representation applicable at the time the case is brought.

What this means in practice for businesses

This obligation is not merely a formal requirement. It has immediate practical consequences:

• from the moment the case is brought: the writ of summons must be drafted by a lawyer acting on behalf of their client;
• during the proceedings: all communications with the court (submissions, documents, incidental applications) must go through the appointed lawyer;
• at the hearing: only the lawyer may present the case.

The conduct of proceedings before the TAE of Paris

The pre-litigation phase: attempt at amicable settlement

Before bringing the matter before the court, it is strongly recommended—and in some cases mandatory—to attempt an amicable settlement of the dispute. This phase may take several forms: a formal notice to perform, direct negotiation assisted by legal counsel, conventional mediation or a contractually agreed conciliation mechanism.

Furthermore, in certain circumstances, the law requires a prior attempt at amicable resolution before bringing the matter before the court. It is essential to verify, at the time of initiating proceedings, the precise conditions under which this obligation applies, failing which the claim may be dismissed as inadmissible.

Commencing proceedings: the writ of summons

The proceedings begin with a writ of summons, the document initiating the proceedings served on the defendant by a bailiff. The writ of summons must be carefully drafted by the lawyer: it sets out the claims, sets out the factual and legal grounds, and lists the documents submitted. A poorly drafted writ of summons or one containing substantial omissions may undermine the entire litigation strategy.

The writ of summons must then be registered – that is, filed with the registry of the TAE.

The adversarial investigation phase

The duration of this phase varies significantly depending on the complexity of the case. For a straightforward case before the TAE of Paris, it lasts around 12 months; for a technical or international dispute, the investigation may extend over 18 to 24 months, or even longer.

In practice, the case is successively referred to procedural hearings until it is ready for judgment. During procedural hearings, the parties are expected to file their submissions in turn. Generally, each party files two sets of submissions.

In some cases, the Court sets a procedural timetable for the exchange of pleadings, which helps to limit delaying tactics.

The hearing and deliberation

Once the preliminary proceedings are complete, a reporting judge is appointed and the case is referred to a hearing for oral submissions. The parties’ lawyers present their arguments orally before a single judge or a panel of judges (three judges), as the case may be.

After the oral arguments, the court reserves its decision: the judgment is generally issued a few weeks after the hearing. The judgment is served on the parties by the registry and may be appealed to the Paris Court of Appeal within one month of service (unless a special time limit applies).

Enforcement procedures and protective measures

A favourable judgment does not necessarily bring the dispute to a close.

It is important here to distinguish between two categories of legal instruments with distinct purposes:

1. Interim measures: These may be sought as soon as proceedings are brought, or even before, in order to ensure the recovery of a debt prior to any final judgment. They may be converted into definitive measures once an enforceable order has been obtained.
2. Enforcement proceedings: These may be sought after obtaining an enforceable order and aim to secure the effective enforcement of the judgments handed down by the court. These include, in particular, attachment of bank accounts, sale of movable property, or attachment of immovable property.

For further information: Precautionary attachments and enforcement procedures

Key considerations for businesses involved in commercial litigation

Handling litigation before the TAE of Paris raises several operational considerations:

• the limitation period: in commercial matters, the general limitation period is five years from the date on which the rights holder became aware, or ought to have become aware, of the facts enabling them to take action (Article L. 110-4 of the Commercial Code). This period may be shortened by contractual clauses or extended in specific cases. A time-barred claim is inadmissible.
• preservation of evidence: in the absence of sufficient documentary evidence (signed contracts, purchase orders, written correspondence, invoices, account statements), the chances of success are significantly reduced. The compilation of the evidence file must be planned for as soon as the dispute arises.
• Anticipating costs: lawyers’ fees, court fees, expert witness fees and enforcement costs must be budgeted for in advance. Certain ‘legal protection’ insurance policies cover all or part of these costs – their existence must be verified before initiating proceedings.
• The arbitration clause: some contracts contain a clause providing for arbitration in the event of a dispute. In such cases, the Commercial Court (TAE) lacks jurisdiction to rule on the merits of the case. The lawyer must identify this clause as soon as the case file is received.

Are you facing a commercial dispute or anticipating proceedings before the Paris Economic Activities Court? Contact us for an initial assessment of your situation.