International Arbitration( French seat) Award annulled when Tribunal wrongly declines jurisdiction (Paris Court of Appeal Keppel—PWA)
Arbitration analysis: In its decision of 21 October 2025, the Paris Court of Appeal ruled on the annulment of an arbitral award in which the arbitral tribunal had declined jurisdiction. The court recalled the well-known principles of French arbitration law regarding consent to arbitration, usually found in an arbitration agreement, which in the matter of international arbitration is not subject to any formal requirements, is independent from the contract in which it is contained (directly of by reference) and the existence and scope of which is assessed without the need to have regard to any state law. The court also clearly stated the method to be followed when ruling on the annulment of an award on the ground of Article 1520 1 of the French Code of Civil Procedure (ie the case when the arbitral tribunal wrongly upheld or declined jurisdiction) which does not relate to the merits of the case but rather consists in a full review of all legal and factual elements that are relevant to establish the existence and scope of the arbitration agreement. This decision can serve as a guide to parties before and after the conclusion of their contract to support the choice of Paris as the place of arbitration, which is a way to ensure: first, that they shall not be placed in the hands of an arbitral tribunal that would retain or decline its jurisdiction for no valid reason, second, that the existence and scope of the arbitration agreement will not be dependent upon a debate as to the determination of the law governing the arbitration agreement and its content, because pursuant to a material rule of French arbitration law, the arbitration agreement is not dependant from any state law, and third, that their decision to resort to arbitration will be given effect. Finally, both the rigor of the method followed by the Court and the magnitude of the litigation costs to be borne by the losing party should deter parties from engaging in frivolous proceedings. Written by Christophe Dugué, Avocat—independent arbitrator and counsel in international commercial arbitration cases, in English and French.