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Judicial liquidation abroad of an insurer and proceedings in progress – Insurance

The judgment of the second civil chamber of the Court of Cassation of May 25, 2022 does not call for long comments since it is limited to drawing lessons from European case law.

It should be remembered, however, that the Court of Cassation was initially seized of a case in which a French company took out an insurance policy with a company governed by Danish law. Following a disaster, she asked for compensation for her damages, which was not paid to her. A French judge was seized, but a judicial liquidation procedure was opened, in parallel, in Denmark, with regard to the insurance company.

The question of the effect of this Danish procedure on the proceedings initiated in France then arose: should the Danish procedure be considered to have led to the interruption of the proceedings in progress in France or not? We know that in internal matters, two provisions provide for such an interruption. Article L. 622-22 of the Commercial Code states that, in principle, proceedings in progress are interrupted until the pursuing creditor has declared his claim and they are then resumed as of right. , the legal representative and, where applicable, the administrator or the commissioner for the execution of the plan duly called, but tend only to the recognition of claims and the fixing of their amount. Article 369 of the Code of Civil Procedure states that the proceedings are interrupted by the effect of the judgment pronouncing the safeguard, judicial reorganization or judicial liquidation in cases where it entails assistance or divestiture of the debtor, Article 371 specifying that in no case the proceeding is interrupted if the event occurs or is notified after the opening of the proceedings.

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