Arbitration analysis: The representatives of a company in liquidation initiated International Chamber of Commerce (ICC) arbitration proceedings under a franchise agreement but saw their claims withdrawn after the respondents failed to pay their share of the advance on arbitration costs. When the claimants later resubmitted their claims before the commercial court of Pau, France, the respondents successfully challenged the court’s jurisdiction by invoking the arbitration clause in the agreement, at first instance and on appeal. However, the French Cour de cassation has now ruled that the principle of ‘procedural loyalty’ (loyauté procédurale) precludes parties that refuse to fund the arbitration costs from later challenging the jurisdiction of the state courts to hear the dispute. Thus, the respondents, having provoked the withdrawal of claims submitted to arbitration by failing to pay the advance on costs, could not subsequently invoke the principle of competence-competence before the state courts. Written by Gisèle Stephens-Chu, Avocate à la Cour and solicitor-advocate, Stephens Chu Dispute Resolution.