Lloyd's Maritime and Commercial Law Quarterly
BREACH OF CONTRACT AS THE BASIS FOR THIRD-PARTY CLAIMS IN TORT: A FRENCH AFFAIR WITH CROSS-BORDER IMPLICATIONS
Andrew Tetley*
In recent years, France has charted a unique and dramatic course between contractual and tortious liability. A breach of contract, without more, can form the basis for a claim in tort by a third party against the party in contractual breach. When one considers that under French tort law there is neither a threshold requirement to show a duty of care between the third party and the wrongdoer nor any need to show that the third party’s consequent loss and damage was foreseeable, the potential impact of this recent development is clear and startling. With the recent coming into force in Europe of Rome II on the law applicable to non-contractual obligations, this feature of French law risks affecting not only French entities but also entities based elsewhere in the world whose contractual dealings cause harm to third parties in France.
A. INTRODUCTION
After arguing cases in both common law courts and civil law courts, it is impossible not to form views on where the common law traditions and the civil law traditions diverge or, conversely, converge. When writing for an international audience, it is tempting to focus on where there is significant divergence, on the basis that what is new or strange to the reader is likely to be of most interest. The author falls victim to this temptation. The subject of this article is the French approach to tort claims by third parties within a contractual framework. French law allows a third party to make a claim in tort based on a breach ipso facto of contract. The subject is one of general commercial interest, with heightened relevance in Europe since the recent coming into force of the European regulation on the Law Applicable to Non-Contractual Obligations (“Rome II”).1 Under Rome II, the risk of foreign tort laws inserting themselves into hitherto domestic affairs has been significantly increased. Indeed, within Europe, the application of Rome II risks seeing the extreme French law position described in this article applied in surprising ways to defendants and situations both inside and outside of France.
* Avocat, Paris; Solicitor, England and Wales; Barrister and solicitor, New Zealand; Legal practitioner, NSW, Australia; Barrister and solicitor, Western Australia; Solicitor and barrister, High Court, Australia; Counsel, Reed Smith, Paris; Lecturer in law, University of Paris Dauphine; Associate member, CREOP, Limoges (EA4332). The author would like to thank Ken Oliphant, Director of the Institute for European Tort Law (Vienna) for his helpful comments in the course of producing this article, as well as colleagues Laurence Elkoubi and Emilie Tran, who assisted with the research, and the anonymous referees.
1. Regulation (EC) No 864/2007 on the Law Applicable to Non-Contractual Obligations (Rome II) 1980 OJ L199/40.
LLOYD’S MARITIME AND COMMERCIAL LAW QUARTERLY
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