Siemens AG and BKMI Industrieanlangen GmbH v. Dutco Construction Co., Ltd.

In 1981 Dutco Construction Co., Ltd. (Dutco) (defendant), BKMI Industrieanlangen GmbH (BKMI) (plaintiff), and Siemens AG (plaintiff) entered a consortium agreement concerning the construction of a cement factory in Oman. The consortium agreement stated that any disputes arising from the agreement should be arbitrated by three arbitrators under the arbitration rules of the International Chamber of Commerce (ICC). Dutco filed a single request for arbitration against BKMI and Siemens together to resolve claims involving BKMI and Siemens separately. BKMI and Siemens were instructed by the ICC to jointly nominate one arbitrator. BKMI and Siemens made the joint appointment but protested the procedure, arguing that joint proceedings were improper. The ICC found that the tribunal was properly constituted and proceeded with arbitration in multiparty form, with Dutco opposing Siemens and BKMI. The arbitration resulted in an award disfavoring BKMI and Siemens. BKMI and Siemens appealed the tribunal’s decision and sought to annul the arbitration award. The appeal was rejected by the France Court of Appeal, which found that because the parties mutually intended to create a multiparty agreement, they also accepted the foreseeable possibility of joint proceedings involving all three parties. BKMI and Siemens appealed to the France Court of Cassation.