La garantie autonome est inopposable en cas de scission – Autonomous guarantee is no longer enforceable in case of a spin-off (bilingual)

La Cour de Cassation (31 janvier 2017 n°15-19.158) pose le principe que la transmission universelle du patrimoine qui résulte d’une opération de fusion ou de scission est incompatible avec le caractère intuitu personae d’une garantie autonome et qu’il y a lieu de mentionner l’existence de cette garantie dans l’acte de scission et de recueillir le consentement exprès de la banque sur le transfert de garantie. Le principe est applicable en cas de fusion ou transmission universelle de patrimoine. La solution serait contraire en cas de caution.

In an important decision, the French Cour de Cassation (January 31, 2017 no15-19.158) ruled that the autonomous guarantee is no longer applicable in case of a spin-off (scission) of the guarantor. This decision would be applicable in case of merger or transmission of the whole business (fusion or transmission universelle du partrimoine). The solution would be (i) to have a specific provision indicating in the autonomous guarantee that it will remain still applicable in case of spin-off, merger or transmission of the whole business, (ii) to refer to the guarantee in the spin-off documentation and also (iii) to ask for the guaranteeing party’s consent to keep the guarantee applicable. The solution would be the contrary for a “caution” in French, i.e. a guarantee ancillary to a contract.

https://www.courdecassation.fr/jurisprudence_2/chambre_commerciale_574/174_31_35999.html

Frédéric Fournier
Associé /Partner