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CISG Article 78: Endless disagreement among
commentators, much less among the courts

Francesco G. Mazzotta
July 2004

Appendix 6

FRANCE

Courts

1. Cour d'appel Grenoble, March 29, 1995, available at <http://cisgw3.law.pace.edu/cases/950329f1.html>.

Original language:     
Translation:
French
Available

Court (translation):

"Whereas, as to the interest, that Article 78 CISG provides that the interest on overdue payments is owed when the debtor is in arrears; That, unlike French law, a formal request is not necessary; That it is proper to hold that the interest runs from the day after the date when [buyer] should have paid the corresponding invoice; Whereas, as to the compounding of the interest, it is proper to grant the demand, to be calculated from the date of the pleadings seeking it [interest claim] (2 May 1994), until one full year shall have run.

....

For these reasons, the Appellate Court:

....

-    Orders [buyer] to pay [seller] f 101,825.50 in principal, plus interest on the overdue payments as of right, to be calculated from the day after the invoices should have been paid;
-    Decides that the interest will be compounded from 2 May 1994, until one full year shall have run."

2. Cour d'appel Paris, April 6, 1995, available at <http://cisgw3.law.pace.edu/cases/950406f1.html>.

Original language:     
Translation:
French
Available

Court (translation):

"Considering that:

Considering that:

On these grounds, the Court of Appeal:

Quashes the arbitral award delivered on 26 March 1993, in Paris, in ICC case no. 6653/ES/FMS between [buyer] and [seller], in which [the Arbitral Court] had ordered [seller] to pay, in addition to the principal payment, interest calculated at the LIBOR rate for one year, accruing from the date on which the price was paid."

3. Cour d'appel Grenoble, April 26, 1995, available at <http://cisgw3.law.pace.edu/cases/950426f2.html>.

Original language:     
Translation:
French
Available

Court (translation):

"On the demands for interest and the compounding of the interest, Article 78 of the CISG provides that any delay in payment gives rise to the payment of interest, without a legal demand being necessary. The interest thus will run, on 130,000 F, from [], the date on which the damaged girders were held available for [buyer], after being repaired. The interest will be compounded until one full year will have lapsed, counting from the pleadings of [], which made the demand for the first time."

4. Cour d'appel Grenoble, November 28, 2002, available at <http://cisgw3.law.pace.edu/cases/021128f2.html>.

Original language:     
Translation:
French
Unavailable

Unilex abstract:

"The Court of Appeal furthermore confirmed the lower Court's decision concerning the payment of the price, granting however the seller in addition interest on the unpaid sum, as provided by art. 78 CISG. As to the rate of interest, the Court applied the statutory rate of the domestic law otherwise applicable (Cuban law) and, for the period of time with respect to which it was not possible to establish the Cuban statutory rate, the French statutory rate. As to the damages, the Court of Appeal held that, even if according to art. 74 the aggrieved party may claim damages, it is up to that party to provide the necessary evidence of the loss suffered. In the case at hand the seller had only proved the non-payment of the price by the seller, with the consequence that no further damages in addition to the interest can be awarded for its benefit."

SUMMARY

Cases involving Article 78: 4
Cases for which an English translation is available: 3
Cases for which only an abstract was available: 1
Cases for which neither translation nor abstract was available: 0


Pace Law School Institute of International Commercial Law - Last updated November 15, 2004
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