Judgment of 20 December 1993, Municipalité de Khoms el Mergeb v. Société Dalico

1994 Rev. arb. 116 (1994)

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Judgment of 20 December 1993, Municipalité de Khoms el Mergeb v. Société Dalico

France Court of Cassation
1994 Rev. arb. 116 (1994)

Facts

In June 1981, the council of Municipalité de Khoms el Mergeb (plaintiff) entered a contract with Société Dalico (Dalico) (defendant). Article 32 of the standard conditions contained in the contract granted exclusive jurisdiction to the Libya courts and required the application of Libyan law to the contract. However, the text of the contract also referred to an annex, which amplified and amended the standard conditions, as an integral part of the agreement. The contract also incorporated documents contained in the tender offers. After a series of disputes between the parties, Dalico initiated an International Chamber of Commerce (ICC) arbitration in Paris under an arbitration clause contained in one of the tender-offer documents and specified in the annex. Municipalité de Khoms el Mergeb objected to the ICC proceedings, arguing the unsigned tender document referred to as the annex in the contract was invalid under Libyan law, the law of the contract under Article 32 of the contract. The ICC arbitral tribunal rejected the claim by Municipalité de Khoms el Mergeb and entered an award for Dalico. Municipalité de Khoms el Mergeb initiated a suit under French courts to challenge the award by the arbitral tribunal.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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