(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
Claimant: KK Ltd (Turks and Caicos Islands)
Respondent: FF (Paris, France)
PLACE OF COURT PROCEEDINGS:
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). FF was bidding to sell armaments in Kuwait and KK was to assist
FF towards getting the contract, against a substantial commission in the