Meaning
Statutory provision in the French legal framework that suspends the limitation period for civil claims when parties agree to mediate or conciliate their disputes. Under article 2238 code civil, the clock measuring extinctive prescription stops running from the date of the agreement to resolve the issue through alternative means. This mechanism protects the claimant from losing the right to sue while attempting an amicable settlement.
Once the dispute resolution process terminates without success, the limitation period resumes for the remaining duration, which cannot be less than six months.
Statutory Pause
The rule requires a written agreement or a formal process initiated by the disputing parties to take effect. It creates a shield for investors who wish to pursue amicable negotiation before launching costly arbitration. In cross-border investments governed by French law, this pause prevents the respondent from running down the clock while pretending to negotiate in good faith.
Resolution Period
The suspension remains in force during the entire duration of the mediation. It ends when either party or the mediator declares the process terminated. The written declaration of failure marks the exact day when the prescription clock starts ticking again.
Arbitral Recourse
If negotiations fail, the claimant retains the full right to submit the dispute to the designated tribunal. This protection is necessary when the original contract mandates pre-arbitral ADR before a formal filing is permitted. It ensures that contractual dispute resolution clauses do not lead to the loss of substantive legal rights.
