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Court of Justice of the European Communities (including Court of First Instance Decisions) |
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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Dorsch Consult v Council and Commission (External relations) [2000] EUECJ C-237/98P (15 June 2000) URL: http://www.bailii.org/eu/cases/EUECJ/2000/C23798P.html Cite as: EU:C:2000:321, [2000] EUECJ C-237/98P, ECLI:EU:C:2000:321 |
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JUDGMENT OF THE COURT (Fifth Chamber)
15 June 2000 (1)
(Appeal - Non-contractual liability - Embargo on trade with Iraq - Lawful act - Damage)
In Case C-237/98 P,
Dorsch Consult Ingenieurgesellschaft mbH, established in Munich (Germany), represented by Professor K.M. Meessen, with an address for service in Luxembourg at the chambers of P. Kinsch, 100 Boulevard de la Pétrusse,
appellant,
APPEAL against the judgment of the Court of First Instance of the European Communities (Second Chamber) of 28 April 1998 in Case T-184/95 Dorsch Consult v Council and Commission [1998] ECR II-667, seeking to have that judgment set aside,
the other parties to the proceedings being:
Council of the European Union, represented by S. Marquardt and A. Tanca, of its Legal Service, acting as Agents, with an address for service in Luxembourg at the office of A. Morbilli, General Counsel of the Legal Affairs Directorate in the European Investment Bank, 100 Boulevard Konrad Adenauer,
and
Commission of the European Communities, represented by A. Rosas, Principal Legal Adviser, and J. Sack, Legal Adviser, acting as Agents, with an address for service in Luxembourg at the office of C. Gómez de la Cruz, of its Legal Service, Wagner Centre, Kirchberg,
defendants at first instance,
THE COURT (Fifth Chamber),
composed of: L. Sevón (President of the First Chamber), acting for the President of the Fifth Chamber, P.J.G. Kapteyn (Rapporteur), P. Jann, H. Ragnemalm and M. Wathelet, Judges,
Advocate General: A. La Pergola,
Registrar: D. Louterman-Hubeau, Principal Administrator,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 14 October 1999,
after hearing the Opinion of the Advocate General at the sitting on 14 December 1999,
gives the following
Facts and procedure before the Court of First Instance
'2 On 30 January 1975 the applicant concluded with the Ministry of Works and Housing of the Republic of Iraq (hereinafter the Iraqi Ministry) a contract for services relating to the organisation and supervision of works on the construction of Iraqi Expressway No 1. The contract, which was for a minimum period of six years, was subsequently renewed several times for the purposes of execution and supervision of the abovementioned works. Article X of the contract provided inter alia that, in the event of differences arising as to the interpretation of the contract or non-performance of contractual obligations, the contracting parties were to endeavour to find an acceptable solution by conciliation (Article X(1)). In the event of the differences persisting, the matter was to be referred to the Planning Board, whose decision would be final and binding. However, no decision taken in relation to the contract could prevent the contracting parties from bringing a dispute before the competent Iraqi courts (Article X(2)).
3 According to the documents before the Court, outstanding debts owed to the applicant by the Iraqi authorities at the beginning of 1990 for services rendered under the abovementioned contract were acknowledged in two letters, dated 5 and 6 February 1990, from the Iraqi Ministry to an Iraqi bank, Rafidian Bank, directing it to transfer the sums due to the applicant to the latter's bank account.
4 On 2 August 1990 the United Nations Security Council adopted Resolution No 660 (1990) to the effect that there had been a breach of international peace and security resulting from Iraq's invasion of Kuwait and that Iraqi forces should withdraw immediately and unconditionally from the territory of Kuwait.
5 On 6 August 1990 the United Nations Security Council adopted Resolution No 661 (1990) in which, declaring that it was mindful of its responsibilities under the Charter of the United Nations for the maintenance of international peace and security and noting that the Republic of Iraq (hereinafter Iraq) had not complied with Resolution No 660 (1990), decided to impose an embargo on trade with Iraq and Kuwait.
6 On 8 August 1990 the Council, referring to the serious situation resulting from the invasion of Kuwait by Iraq and to United Nations Security Council Resolution No 661 (1990), adopted, on a proposal from the Commission, ... Regulation ... No 2340/90 ...
7 Article 1 of Regulation No 2340/90 prohibits as from 7 August 1990 the introduction into the territory of the Community of all commodities or products originating in, or coming from, Iraq or Kuwait and the export to those countries of all commodities or products originating in, or coming from, the Community. Article 2 of the same regulation prohibits as from 7 August 1990 (a) all activities or commercial transactions, including all operations connected with transactions which have already been concluded or partially carried out, the object or effect of which is to promote the export of any commodity or product originating in, or coming from, Iraq or Kuwait; (b) the sale or supply of any commodity or product, wherever it originates or comes from, to any natural or legal person in Iraq or Kuwait or to any other natural or legal person for the purposes of any commercial activity carried out in or from the territory of Iraq or Kuwait; and (c) any activity the object or effect of which is to promote such sales or supplies.
8 According to the documents before the Court, on 16 September 1990 the Higher Revolutionary Council of the Republic of Iraq, referring to arbitrary decisions by certain governments, adopted with retroactive effect from 6 August 1990 Law No 57 on protection of Iraqi property, interests and rights in Iraq and elsewhere (hereinafter Law No 57). Article 7 of that Law froze all property and assets and income from them held at the material time by the governments, undertakings, companies and banks of those States which had adopted arbitrary decisions against Iraq.
9 Not having received payment from the Iraqi authorities of the sums acknowledged as due in the abovementioned letters of 5 and 6 February 1990 from the Iraqi Ministry (see paragraph 3 above), the applicant, by letters of 4 August 1995, asked the Council and the Commission to compensate it for the damage suffered as a result of those debts having become irrecoverable through application of Law No 57, since that Law had been adopted in response to the adoption by the Community of Regulation No 2340/90. In those letters, the applicant claimed that the Community legislature was under an obligation to compensate operators affected by the embargo imposed on trade with Iraq and that the failure to do so rendered the Community liable under the second paragraph of Article 215 of the EC Treaty. It added that, as a precaution, it had registered its claims against Iraq with the United Nations Iraq Claims Compensation Commission.
10 By letter dated 20 September 1995 the Council refused to grant the applicant's request for compensation.
11 In those circumstances the applicant, by application lodged at the Registry of the Court of First Instance on 6 October 1995, brought the present action.
The contested judgment
The appeal
- existence of actual and certain damage (first to third pleas);
- existence of a direct and foreseeable causal link (fourth to sixth pleas);
- existence of special and unusual damage (7th to 16th pleas);
- right to compensation for damage suffered as a result of a lawful act (17th plea);
- right to compensation for damage suffered as a result of the failure of the Community legislature to exercise its discretion in regard to fixing the amount of the compensation, that plea being submitted in the alternative (18th plea).
Preliminary observations
Existence of actual and certain damage
The failure by the Community legislature to exercise its discretion regarding the fixing of the amount of compensation
Costs
59. Under Article 69(2) of the Rules of Procedure, which applies to appeals by virtue of Article 118, the unsuccessful party is to be ordered to pay the costs, if they have been asked for in the successful party's pleadings. Since the Council has asked for costs against the appellant and the latter has been unsuccessful, the appellant must be ordered to pay the costs.
On those grounds,
THE COURT (Fifth Chamber),
hereby:
1. Dismisses the appeal;
2. Orders Dorsch Consult Ingenieurgesellschaft mbH to pay the costs.
Sevón
RagnemalmWathelet
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Delivered in open court in Luxembourg on 15 June 2000.
R. Grass D.A.O. Edward
Registrar President of the Fifth Chamber
1: Language of the case: German.