(1) Swiss courts’ powers to review foreign law.
(2) French law on representation of companies.
(3) Security for costs before Swiss courts.
(1) The Swiss courts should apply foreign law in accordance with judgements rendered by the highest foreign courts.
(2) A French Sàrl is not bound by a contract signed by a non-officer having apparent authority (mandat apparent).
(3) Swiss courts may order a claimant challenging an arbitral award to put up security for costs where the claimant comes from a country with which Switzerland has not concluded a convention. This is the case with tax haven countries, in the present matter Turks and Caicos.
Claimant: KK Ltd (Turks and Caicos Islands)
Respondent: FF (Paris, France)
PLACE OF COURT PROCEEDINGS: Switzerland
Swiss Federal Statute on Private International Law of 1987
French company law, article L 223-18 C.com.
The dispute arose out of a consultancy agreement and the issue was whether the Arbitral Tribunal had jurisdiction. The consultancy agreement was entered into between KK, an offshore affiliate from a Kuwait company, and FF, a French Sàrl (Société à responsabilité limitée).