Greetings, CaseSnappy readers! Today, we delve into a pair of European Court of Justice (ECJ) rulings arising from keenly contested provisions of EU law. Strap in as we navigate between beer exports and fishing rights in one of the landmark judgments on state liability under EU law.
Our central characters in these cases are Brasserie du Pêcheur, a French brewing company, and Factortame Ltd and others - a group of fisherman. Both parties challenged the regulations of Member States, alleging that they were inconsistent with EU law. Brasserie du Pêcheur was prohibited from exporting beer to Germany due to national regulations, a prohibition they claimed was inconsistent with EU law and resulted in substantial losses.
On the other hand, Factortame Ltd, and others were effectively excluded from registering their fishing vessels thanks to the UK's Merchant Shipping Act 1988, which they argued was incompatible with EU law.
Gearing up for a legal battle, both parties argued that the Member States in question (Germany and the UK) should be liable under EU law for the damage caused to them by breaches of EU law, even if the said breach was attributed to national legislation. Both Germany and the UK contested these claims, asserting that state liability is not justified according to EU law when legislative discretion has been exercised.
In a pivotal judgment, the ECJ declared that Member States could indeed be held liable for breaching EU law and causing damage, subject to certain boundary conditions. These included the breached rule of law intending to confer rights on individuals; a significant breach having occurred; and a direct cause-effect relationship between the breach and the resultant damage.
As written in the judgement, 'The court has consistently held that the right of individuals to rely on... direct effective provisions of the Treaty before national courts is only a minimum guarantee and is not sufficient in itself to ensure the full... implementation of the Treaty.'
The Court continued '...the conditions under which the State may incur liability for damage caused to individuals by a breach of Community law cannot, in the absence of particular justification, differ from those governing the liability of the Community in like circumstances.'
From breweries to fishing vessels, these cases underscore the important principle that state liability can be triggered by breaches of EU law and affirm the place of individuals or corporations to challenge such breaches.
Keep an eye out for our next instalment of Decoding Judgements, where we continue to dissect complex examples of case law. Join CaseSnappy for free today!