A commercial dispute is any disagreement arising between traders or in connection with a commercial transaction. It falls within the jurisdiction of the Commercial Court (tribunal de commerce) and follows a fast procedural timetable, marked by limitation periods of 5 years, powerful protective tools (attachment by court order) and alternative methods (settlement, mediation, arbitration) that are often preferred. The pre-litigation phase matters as much as the court proceedings themselves.
What is a commercial dispute under French law?
A dispute is classified as commercial when it concerns a commercial transaction (acte de commerce) within the meaning of Articles L. 110-1 et seq. of the French Commercial Code (Code de commerce) (in French), or when it is between two traders in the course of their business. This classification has several consequences:
- Jurisdiction of the Commercial Court at first instance (Article L. 721-3 of the Commercial Code), unless there is an arbitration clause. In Paris, since 1 January 2025 and for four years, the Commercial Court has become, on an experimental basis, the Economic Activities Court (tribunal des activités économiques).
- Freedom of evidence between traders (Article L. 110-3 of the Commercial Code): invoice, email, written statement, witness evidence.
- 5-year limitation period for obligations between traders (Article L. 110-4 of the Commercial Code).
- Option to adjust the time limits by contract, within a range of 1 to 10 years.
When a dispute is between a trader and a non-trader (mixed transaction), the competent court depends in particular on the status of the party being sued: a prior analysis is essential before choosing between the Commercial Court and the Judicial Court (tribunal judiciaire).
The stages of commercial litigation in France
Stage 1 – The formal notice
A formal notice (mise en demeure) is not mandatory between businesses (B2B) but remains the pivotal step of the pre-litigation phase. It starts late-payment interest running (Article 1344-1 of the French Civil Code), sets out the creditor’s position in writing and often unlocks payment without proceedings.
Stage 2 – Negotiation and amicable settlement
After the formal notice, the parties often attempt an amicable settlement. The settlement agreement (protocole transactionnel) records the agreement and bars any legal action between the parties on the same subject matter (Article 2052 of the Civil Code). Before the Judicial Court, a claim not exceeding €5,000 must be preceded by an attempt at conciliation, mediation or a participatory procedure, failing which it is inadmissible (Article 750-1 of the French Code of Civil Procedure (in French)); this provision does not apply before the Commercial Court.
Stage 3 – Protective measures
To protect the creditor’s security against a debtor at risk of insolvency, a protective attachment (saisie conservatoire) makes it possible to freeze bank accounts, receivables or assets before any judgment, under Article L. 511-1 of the French Code of Civil Enforcement Procedures (Code des procédures civiles d’exécution) (in French). It is authorised on an ex parte application (without the other party being heard) by the enforcement judge (juge de l’exécution) or, before any proceedings and for a commercial claim, by the President of the Commercial Court (Article L. 511-3 of that code).
Stage 4 – Suing a French company: the summons and the proceedings
The summons (assignation) before the Commercial Court opens the proceedings. The procedure is oral, with short time limits and pre-trial preparation that is often quick. The court rules on freely adduced evidence, without excessive formality.
Stage 5 – Enforcement
Once the creditor has obtained an enforceable title, it can convert the protective attachment into an attachment of debts (saisie-attribution), or seek attachment of earnings, of a business (fonds de commerce) or of real property. The judicial officer (commissaire de justice) is the central figure in enforcement.
The creditor’s tools in a commercial dispute
- Formal notice sent by a lawyer: the pivotal step, starts late-payment interest running.
- Judicial officer’s report (constat): preserves digital or physical evidence before action is taken.
- Protective attachment: freezes assets before judgment.
- Order for payment (injonction de payer): a simplified procedure for liquidated claims that are due.
- Summary proceedings for an interim payment (référé provision): quickly obtaining an advance on a claim that cannot be seriously disputed.
- Action on the merits: full proceedings for complex disputes.
Evidence in a commercial dispute
Article L. 110-3 of the Commercial Code (in French) establishes freedom of evidence: “In respect of traders, commercial transactions may be proved by any means unless otherwise provided by law.”
In practice, the strength of the case depends on how rigorously the evidence is gathered: invoices, purchase orders, email exchanges, screenshots recorded by a judicial officer, witness statements, technical expert reports. A body of consistent evidence often outweighs a single piece of evidence that can be challenged.
Alternative dispute resolution
- Settlement (transaction) (Article 2044 of the Civil Code): a contract by which the parties, through mutual concessions, end an existing dispute or prevent a future one. It bars any legal action between the parties on the same subject matter (Article 2052 of the Civil Code).
- Mediation: a neutral third party facilitates the negotiation. Confidential and faster than court proceedings.
- Conciliation: a procedure before the Commercial Court, sometimes prior to the summons.
- Arbitration: a private tribunal ruling in law or in equity, whose decisions are binding on the parties.
Time limits and limitation periods
The ordinary limitation period is 5 years between businesses (B2B) (Article 2224 of the Civil Code and Article L. 110-4 of the Commercial Code). It can be:
- Interrupted by: acknowledgement by the debtor, a court claim, an enforcement measure. Interruption wipes out the time already elapsed and starts a new full period running.
- Suspended in certain circumstances (inability to act).
- Adjusted by contract to between 1 year and 10 years, within the limits of Article 2254 of the Civil Code.
Anticipating the limitation period is crucial for older claims: a summons served before the period expires interrupts limitation, and this interruption continues to have effect until the proceedings come to an end (Article 2242 of the Civil Code).
The role of a commercial litigation lawyer
The lawyer acts at every stage: drafting the formal notice, advising on procedural strategy, applying for a protective attachment, negotiating the settlement agreement, pleading before the Commercial Court, following up enforcement. The role is as much strategic as legal: anticipating the other side’s defence, calibrating the evidence, choosing the right moment to sue or to settle.
In-depth articles on commercial disputes
- Is a formal notice from a lawyer mandatory before a summons? (in French)
- How to obtain a judicial officer’s report on online content (in French)
- What is the legal effect of a settlement agreement? (in French)
- How to interrupt the limitation period of a commercial debt (in French)
- Protective attachment: how to freeze a debtor’s accounts before judgment
Each commercial litigation case calls for its own analysis, taking into account the amount at stake, the debtor’s profile, the evidence available and the time limits running.
Every situation is different: the information on this page is general and does not replace legal advice tailored to your case. The firm makes no promise of outcome; it commits to the means it deploys.