CJEU Case C-584/17 P / Judgment

ADR Center SpA v European Commission.
Policy area
Justice, freedom and security
Deciding body type
Court of Justice of the European Union
Deciding body
Court (Third Chamber)
Decision date
16/01/2021
ECLI (European case law identifier)
ECLI:EU:C:2020:576
  • CJEU Case C-584/17 P / Judgment

    Key facts of the case:

    Appeal — Arbitration clause — Grant agreements concluded in the context of the Specific Programme ‘Civil Justice’ for the period 2007-2013 — Audit reports questioning the eligibility of certain costs — European Commission decision to recover unduly paid sums — Article 299 TFEU — Power of the Commission to adopt an enforceable decision within contractual relationships — Jurisdiction of the EU judicature — Effective judicial protection.

    Outcome of the case:

    On those grounds, the Court (Third Chamber) hereby:

    • Dismisses the appeal;
    • Orders ADR Center SpA to bear, in addition to two thirds of its own costs, two thirds of the costs incurred by the European Commission;
    • Orders the European Commission to bear, in addition to one third of its own costs, one third of the costs incurred by ADR Center SpA.
  • Paragraphs referring to EU Charter

    34) In paragraphs 199 to 213 of the judgment under appeal, the General Court stated that that conclusion was not contrary to the judgment of 17 June 2010, CEVA v Commission (T‑428/07 and T‑455/07, EU:T:2010:240), or the judgment of 9 September 2015, Lito Maieftiko Gynaikologiko kai Cheirourgiko Kentro v Commission (C‑506/13 P, EU:C:2015:562), which raised the question of whether a debit note constituted a challengeable act within the meaning of Article 263 TFEU. According to the General Court, such a finding also did not infringe Article 47 of the Charter of Fundamental Rights of the European Union (‘the Charter’), since, following the partial reclassification of the action, it examined, in the same action, both the legality of the contested decision and the merits of the Commission’s contractual claim against ADR which was at the origin of the adoption of that decision.

    ...

    38) In support of its appeal, ADR raises two grounds of appeal, the first alleging an error of law committed by the General Court in interpreting the principle governing European Union financial aid and, the second, alleging an error of law committed by the General Court in interpreting Article 299 TFEU, Article 79 of the Financial Regulation and Article 47 of the Charter.

    ...

    46) In the second place, ADR submits that the General Court erred in law in holding that the recognition of the Commission’s competence to adopt enforceable recovery orders in contractual matters did not infringe Article 47 of the Charter.

    47) In that regard, ADR submits that the General Court examined the complaint alleging an infringement of Article 47 of the Charter solely from the perspective of the right of access to a tribunal, but did not rule on the issue of the right to an effective remedy. By granting the Commission the right to adopt unilateral measures, even though the Commission’s co-contracting party has brought an action under Article 272 TFEU before the competent court, be it the EU judicature or the national courts, the General Court would allow that institution to circumvent the action brought by that co-contracting party. This would considerably reduce the effectiveness of the action based on Article 272 TFEU and, since actions brought against an enforceable recovery order do not have suspensive effect, such a situation could have significant adverse consequences for grant beneficiaries, including bankruptcy or liquidation.

    ...

    49) By the second ground of appeal, ADR relies on arguments based essentially on the misinterpretation, not only of Article 299 TFEU and of Article 79(2) of the Financial Regulation, but also of the principle of effective judicial protection, as enshrined in the Court’s case-law relating to Article 47 of the Charter.

    ...

    79) With regard to ADR’s arguments alleging infringement of the principle of effective judicial protection, enshrined in Article 47 of the Charter, the General Court rightly pointed out, in paragraph 210 of the judgment under appeal, that that principle constitutes a general principle of EU law and that it comprises various elements, including the right of access to the courts (see, to that effect, judgment of 6 November 2012, Otis and Others, C‑199/11, EU:C:2012:684, paragraphs 46 and 48).

    80) In paragraph 211 of the judgment under appeal, the General Court recalled the case-law of the Court of Justice according to which, in order for a court or tribunal to determine a dispute concerning rights and obligations arising under EU law in accordance with Article 47 of the Charter, that court or tribunal must have jurisdiction to consider all questions of fact and law relevant to the dispute before it (see, to that effect, judgment of 6 November 2012, Otis and Others, C‑199/11, EU:C:2012:684, paragraph 49).

    ...

    84) However, such a reclassification of the action, since it depends not only on the will of the EU judicature but is also, in accordance with that case-law of the General Court, subject to conditions independent of that reclassification, such as the fact that the applicant does not expressly oppose it and the existence of a plea alleging infringement of the rules governing the contractual relationship in question, cannot be regarded as providing effective judicial protection under Article 47 of the Charter, since that fundamental right requires, as recalled in paragraph 80 of the present judgment, that the court must consider all questions of fact and law relevant to the dispute before it.

    ...

    86) When the Commission performs a contract, it remains subject to its obligations under the Charter and the general principles of EU law. Thus, the fact that the law applicable to the contract in question does not provide the same guarantees as those conferred by the Charter and the general principles of EU law does not exempt the Commission from ensuring that the parties with which it has concluded a contract comply with them.

    87) It follows from the foregoing that that case-law, which makes a distinction according to whether the pleas in law raised in an action must be regarded by the EU judicature before which it is brought as alleging one of the infringements or cases referred to in the second paragraph of Article 263 TFEU, or, on the contrary, as alleging an infringement of the terms of the contract concerned or an infringement of the provisions of the national law applicable to that contract, cannot guarantee that all questions of fact and law relevant to the resolution of the dispute will be examined in order to ensure effective judicial protection under Article 47 of the Charter.

    ...

    91) Consequently, the argument based on infringement of the principle of effective judicial protection, enshrined in the Court’s case-law relating to Article 47 of the Charter, is inoperative and must therefore also be rejected.