#9 Class Actions - Part III France

Hi,

In previous articles we have been talking about class actions in the United States and in Great Britain. Thus covered two main representatives of common law we now pass to the countries of continental legal system.

In France, for instance, class actions are quite recent phenomenon. They were introduced only in 17 March 2014 by Loi Hammon allowing such claims to be brought by consumers.  Several years of discussions preceded entering this law which was much inspired by the extensive practice of class actions in the countries of common law.

Procedure

Although example of the US and GB have been utilized, French class actions are not the reflection of those. In France there has not been any huge procedural reform introducing class actions, all we are talking about is introduction of a new piece of legislation to the French Consumer Code concerning only consumers and service providers.

Class actions are sought from the breaches of contractual or statutory obligations by the service provider or from their anti-competitive behavior violating French and European law.

Class actions claims are heard only by the Tribunal de grande instance. The whole procedure may be compared to the UK Group Litigation Order and has two steps in it:

1.       Decision on professional liability of the service provider: liability, identification of the consumers incurring damages; assessment of damages; measures to inform the consumer belonging to the class.

2.       Compensation stage: only material loss is compensated, any moral harm may be compensated only by individual claim.

Similarly to the UK French procedure provides for opt-in mechanism which is to be adopted by the Tribunal de grande instance on the first stage. The consumers have right to opt-out from the procedure. 

Class consumer may only be compensated if the decision on professional liability has entered into force and is no longer subject for any review. Compensation claims arising from anti-competitive practice can be brought before the administrative decision on professional liability becomes final but the court must stay the proceedings until such decision so becomes. 

Limitations

French law provides for a very narrow scope class actions limited by:

·        Subject – they are only available for the class of consumers;

·        Grounds – class actions are raised only from contractual / statutory breaches of service providers or their anti-competitive practices sanctioned by the law;

·        Damages – only material damages are subject to compensation;

·        Prejudice – consumers may be compensated provided that the decision on liability of service provider is in force or administrative decision on professional liability is final.

Hope that the above information was useful for you,

See you soon,

Andrey