Creation of a Specialized Court Division to Handle Duty of Care Disputes in France
The Paris Judicial Court has established a new division to handle disputes related to the Duty of Vigilance Act.
On September 2, 2024, the 34th court division, entitled the "Social, Economic and Environmental Regulation Court Division," was created within the Paris Judicial Court to deal with all litigation based on Law no. 2017-399 of March 27, 2017, regarding the duty of vigilance of parent companies and contracting companies ("Duty of Vigilance Act"), as well as all associated litigation in social, economic, and environmental matters.
Since 2021, the Paris Judicial Court has had exclusive jurisdiction in France to deal with disputes relating to the Duty of Vigilance Act. This legislation requires companies employing at least 5,000 employees within their organization and in their direct or indirect subsidiaries headquartered in France, or at least 10,000 employees within their organization and in their direct or indirect subsidiaries headquartered in France or abroad, to establish and effectively implement a due diligence plan to prevent serious violations involving human rights and fundamental freedoms, personal health and safety, and the environment. The Duty of Vigilance Act paved the way for the adoption by the European Parliament of Directive 2024/1760 of June 13, 2024, on the duty of care of companies with regard to sustainability ("CS3D Directive").
A pioneer within the European Union with the adoption of the Duty of Vigilance Act, France once again distinguishes itself with the establishment of this new specialized court division, which will be responsible for handling particularly complex and technical disputes related to the Duty of Vigilance Act. Laure Aldebert, first vice president and coordinator of the Economic and Commercial Activities Division, has been appointed as the president of this court division. It is worth noting that the other magistrates serving in this chamber will not be exclusively assigned to it, thereby highlighting the importance of staffing the chamber with magistrates having multidisciplinary legal experience and the capability of handling a range of matters, including litigation relating to the Duty of Vigilance Act.
In this rapidly evolving legal context, companies should pay particularly close attention to the rulings issued by the new 34th chamber. This attention will be all the more advisable given that, in parallel, the CS3D Directive must be transposed by Member States by July 26, 2026.
