NEWS | 📣 First rulings issued on 18 June 2024 by the Paris Court of Appeal on Corporate Duty of Vigilance 🌍
⚖️ The new Chamber of the Paris Court of Appeal dedicated to duty of vigilance litigation ruled on appeals against three decisions from the pre-trial judge of the Paris Judicial Court, which had declared inadmissible the claims based on the duty of vigilance law. These claims were respectively targeting #TotalEnergies (regarding greenhouse gas emissions obligations), #EDF (concerning the installation of wind power plants in Mexico), and Vigie Groupe, formerly Suez (for its activities in Chile, among others).
The Court of Appeal overturned the first instance decisions in the TotalEnergies and EDF cases and deemed the claims brought against them admissible. Consequently – subject to a possible appeal to the Supreme Court – the debate on the merits of the measures sought will now proceed before the Paris Judicial Court.
However, the inadmissibility of the claim against Vigie Groupe has been confirmed by the Court of Appeal, which ruled that the subsidiary sued by the claimants did not have the legal capacity to defend itself.
🔍 Key takeaways:
➡️ The requirement of a prior formal notice, required by Article L. 225-102-4 II of the Commercial Code, is satisfied if the notice clearly outlines the alleged violations and includes a call for action;
➡️ The summons must substantially concern the same obligations as those outlined in the formal notice, without the needing to refer to the same vigilance plan by date;
➡️ Anyone demonstrating a legitimate interest has the right to bring an action following the issuance of a formal notice, regardless of whether they were the one to issue the formal notice;
➡️ To ensure the admissibility of their claim, local authorities must demonstrate a local public interest, as interpreted by the Court of Appeal in this context as a specific harm or a particular impact of the risk on their territory; and
➡️ A subsidiary does not have the legal capacity to defend itself, as only the parent company is the natural debtor of the obligation outlined under Article L. 225-102-4 I of the Commercial Code.
For more information, please contact Anne-Claire Hans, head of the #ESG practice.
#Dutyofvigilance #ESG
*Senior Investigator , Anti- Dumping,Subsidy Investigations , Egyptian Trade Remedies Sector. Egyptian Ministry of Trade &Industry *Doctorate of Business and Administration, Accounting and Finance major.
2moCongratulations Girgis Abd El-Shahid