Paris Court of Appeal issues a landmark decision regarding the improper constitution of an arbitral tribunal

 

On 23 March 2021, the international division of the Paris Court of Appeal issued a much-awaited decision in the D.S. Construction v. State of Libya OIC arbitration proceedings.

The State of Libya was represented before the Court by Eversheds Sutherland Paris.

In this case, D.S. Construction sought to resort to the PCA for constituting the arbitral tribunal. The Court found that the PCA’s intervention was not contemplated by the OIC Agreement and never agreed by Libya. The Court accordingly held that the arbitral tribunal was improperly constituted.

This landmark judgement serves as a strong reminder that the arbitration process is, above all, rooted in the consent of the parties.

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