C-19/60
ECLI:EU:C:1961:30
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JUDGMENT OF 15. 12. 1961 — J0INED CASES 19/60, 21/60, 2/61, 3/61
In Joined Cases
19/60 SOCIÉTÉ Fives Lille Gail , whose registered office is at 7, Rue de Montalivet, Paris, represented by Raymond Barraine, Head of its Administration and Legal Departments,
21/60 Société Union Sidérurgique du Nord de la France (hereinafter referred to as 'Usinor'), whose registered office is at 14 Rue d'Athènes, Paris, represented by Rene Damien, Chairman of its Board of Management,
2/61 Société des Forges et Ateliers du Creusot, whose registered office is at 15, Rue Pasquier, Paris, represented by Georges Chambon, its managing director,
3/61 Société Marrel Frères , whose registered office is at 28 Rue Claude-Drivon, Rive-de-Gier (Loire), represented by Jacques Marrel, its General Manager,
assisted by Jean-Pierre Aron, Advocate at the Cour d'Appel, Paris, with an address for service in Luxembourg at the offices of the Chambre Syndicate de la Siderurgie Française, 49 Boulevard Joseph-II,
applicants,
v
High Authority of the European Coal and Steel Community , represented by its Legal Adviser, Italo Telchini, acting as Agent, and Professor André de Laubadère, of the University of Paris, acting as co-Agent, with an address for service in Luxembourg at its office at 2 place de Metz,
defendant,
Application:
(a) In Case 19/60:
For the annulment of the implied decision of the High Authority refusing to pay to the applicant, Fives Lille Cail, as parity of transport costs (hereinafter referred to as 'transport parity'), the sum of FF 5 764.16 representing the difference between the cost of carriage of ferrous scrap to the recipient works from, on the one hand, the nearest station to the scrap recovery yard and, on the other, the nearest port of entry; or in the alternative, for an order that the High Authority pay as damages to the said applicant the sum of FF 5 764.16;
FIVES LILLE CAIL v HIGH AUTHORITY
(b) In Case 21/60:
For the annulment of the implied decision of the High Authority refusing to pay the applicant, Usinor, the sum of FF 14 912.71 as transport parity in respect of the said ferrous scrap; in the alternative, for an order that the High Authority pay as damages to the said applicant the sum of FF 14 912.71;
(c) In Case 2/61:
For the annulment of the enforceable decision of the High Authority of 14 December 1960 ordering the applicant, the Société des Forges et Ateliers du Creusot, to repay to it the amount of FF 20 800 which had been wrongly paid to the applicant under the scheme for the equalization of imported scrap and scrap treated as such; in the alternative, for an order that the High Authority pay as damages to the said applicant the sum of FF 20 800;
(d) In Case 3/61:
For the annulment of the enforceable decision of the High Authority of 14 December 1960 ordering the applicant, Marrel Frères, to repay to it the amount of FF 4 760; in the alternative, for an order that the High Authority pay as damages to the said applicant the sum of FF 4 760.
THE COURT
Composed of: A.M. Donner, President, J. Rueff, President of Chamber, L. Delvaux, Ch. L. Hammes (Rapporteur) and R. Rossi, Judges,
Advocate-General: K. Roemer
Registrar: A. Van Houtte
gives the following
JUDGMENT
Issues of fact and of law
I — Facts needs of current consumption and to keep stocks at their normal level, introduced, un The underlying facts may be summarized as der Article 53 of the ECSC Treaty, financial follows: arrangements, which were binding on all 1. In 1954 the High Authority, finding that undertakings in the Community which were the supplies of ferrous scrap within the consumers of ferrous scrap and which Community were insufficient to meet the provided both for joint purchase of ferrous
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60, 2/61, 3/61
scrap from third countries and shipyard and the third and fourth companies about scrap treated as such and for equalization of $15 000 each. the prices of this scrap and domestic scrap. 6. In October 1958, the four applicant com 2. Since the equalization scheme was in panies accepted delivery of certain quan troduced, the Office Commun des Consom tities of shipyard scrap in execution of mateurs de Ferraille (the Joint Bureau of supply contracts concluded by the OCCF, Ferrous Scrap Consumers, hereinafter namely: referred to by its French initials as 'the (a) Fives Lille Cail (the applicant in Case OCCF') has negotiated on behalf of the un 19/60): 392 120 metric tons in execu dertakings of the Community a large tion of Contract 2/RN-2568f con number of contracts for the purchase of cluded by the OCCF with Les Abeilles, shipyard scrap for delivery price-free on rail Le Havre, a recovery and salvage un ex-railway station nearest to the scrap dertaking, on 19 September 1958; recovery yard; the recipient undertakings (b) Usinor (the applicant in Case 21/60): were designated to the seller of the scrap by 1 014 470 metric tons in execution of the regional offices (in France, the Union Contract 6/RN-2582f concluded by the des Consommateurs de Ferraile de France, OCCF with the Lombarda Metalli un the French union of ferrous scrap con dertaking, Milan, on 24 September sumers, hereinafter referred to as 'the 1958;
UCFF'). (c) The Société des Forges et Ateliers du 3. Because of the difference in the cost of Creusot (the applicant in Case 2/61): transporting ferrous scrap to its destinations 2 918 metric tons in execution of from the ports of entry or the scrap recovery Contracts 766/DN-2588f and yards, some scrap consumers' works situated 772/DN-2605f concluded by the OCCF nearer the ports of entry than the ship- with the Compagnie Minière et Métal breaking yards tended to look for scrap im lurgique, Paris, on 27 September 1958, ported by sea from third countries rather and on. 29 September 1958 with the than shipyard scrap.
Société de Démolitions Navales et 4. In these circumstances, the undertakings Terrestres, Paris; concerned were unwilling to take supplies of (d) Marrel Frères (the applicant in Case shipyard scrap without an assurance that, to 3/61): 506 220 metric tons in execution put them on an equal footing, they would be of the said Contract 772/DN-1605f. repaid the difference between the cost of The applicant companies maintain that transport from the railway station nearest to they had, through the UCFF, obtained the scrap recovery yard (in the case of the prior consent of the OCCF to the shipyard scrap) and the cost of transport grant of transport parity, calculated on from the nearest port of entry (in the case of the basis of notional ferrous scrap im scrap from third countries). ports either through the port of
5. From 1954 to 1958, some undertakings in Dunkirk ('Dunkirk parity' of FF 14.70 the Community, particularly in France but per metric ton) or through the port of also in Italy and in the Netherlands, among Marseilles ('Marseilles parity' of FF them the four applicant companies, received 10.50 per metric ton). from the OCCF a rebate totalling about $523 000 in respect of the difference in In support of these statements they transport charges. produced the following documents: Evidence of the extent of this practice, as far the applicant in Case 19/60 produced as they were concerned, was provided by the a letter of 9 October 1958 from the applicants during the oral proceedings by UCFF registering its consent to the the discount payments from 1954 to 1958. grant of transport parity in respect of The first applicant received $20 000 as tran the purchase referred to in (a) above: sport parity, the second applicant $70 000 the applicant in Case 21/60 produced
FIVES LILLE CAIL v HIGH AUTHORITY
a letter of 27 October 1958 in which by the High Authority; as in the case of the the OCCF notified the UCFF of its earlier calculations, allowance was made in agreement that the consignee should, the corrected calculations for payment of in respect of the purchase referred to the transport parities. under (b) above, be credited with an In consequence, the applicant in Case 2/61 amount of FF 1 470 per metric ton received the sum of FF 20 800 under that (Dunkirk parity); head and the applicant in Case 3/61 the sum the applicant in Case 2/61 produced of FF 4 760. a letter of 15 October 1958 in which The High Authority subsequently recon the OCCF gave the vendor of the sidered these payments and on 15 March ferrous scrap in respect of the 1960 sent to the two abovementioned appli purchase referred to under (c) above cant companies fresh statements of account its consent to invoice a price which amended the earlier ones and no 'equivalent to the Marseilles parity'; longer allowed for the 'Marseilles parity'. the applicant in Case 3/61 produced By enforceable decisions of 14 December a letter of 21 October 1958 in which 1960, it ordered the applicants to repay the the OCCF requested the vendor of aforementioned amounts. the scrap in respect of the purchase On 16 January 1961, the Société des Forges referred to under (d) above to in
et Ateliers du Creusot and Marrel Frères crease its invoices by FF 1 050 per lodged applications against these decisions metric ton (Marseilles parity). which were entered in the Registry under 7. On 15 March 1960, the Directorate Nos 2/61 and 3/61 respectively. General for Steel of the High Authority sent to the applicants in Cases 19/60 (Fives Lille II — Conclusions of the parties Cail) and 21/60 (Usinor) equalization state ments in respect of the above-mentioned The applicants claim: contracts which took no account of the (a) In Case 19/60 (Fives Lille Cail) that the agreed transport parities (FF 5 764.16 for Court should annul, 'as being ultra vires the former, and FF 14 912.71 for the latter and contrary to the rules of law relating to undertaking). the application of the ECSC Treaty', the By letters of 30 July and 11 August 1960 implied decision of the refusal by the High respectively the said applicants requested Authority to grant the request contained in the High Authority to correct these state the letter of 30 July 1960 for payment of the ments of account by allowing for transport sum of FF 5 764.16 as transport parity; parity; when, after two months, they had In the alternative that the High Authority received no reply, they lodged an applica be ordered to pay the same sum of FF tion on 26 October and 5 November 1960 5 764.16 as damages for a wrongful act or against the implied decision of refusal to be omission in the performance of its functions; inferred from the failure of the High (b) In Case 21/60 (Usinor) that the Court Authority to reply. should annul 'as being ultra vires and con
8. On 10 and 14 August 1959, the High trary to the rules of law relating to the Authority sent to the applicants in Cases application of the ECSC Treaty', the im 2/61 (Société des Forges et Ateliers du plied decision of refusal by the High Creusot) and 3/61 (Marrel Frères) respec Authority to grant the request contained in tively, provisional equalization statements the letter of 11 August 1960 for payment of of account under which they were credited, the sum of FF 14 912.71 as transport as reimbursable expenses, with the parity; difference in transport costs calculated in In the alternative, that the High Authority accordance with the 'Marseilles parity'.
On be ordered to pay the same sum of FF 10 December 1959, three out of four of 14 912.71 as damages for a wrongful act or these statements of account were corrected omission in the performance of its functions;
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60, 2/61, 3/61
(c) In Case 2/61 (Société des Forges el The submissions and arguments of the par Ateliers du Creusot) that the Court should ties may be summarized as follows: annul, 'as being ultra vires and contrary to the rules of law relating to the application of A — Admissibility the ECSC Treaty', the enforceable decision The defendant contests the admissibility of of the High Authority of 14 December 1960 the applications only in so far as they arise ordering it to repay the sum of FF 20 800 out of the proceedings for annulment, and which it had received as the difference in the in any event largely as a formality. transport costs of shipyard scrap on the basis of the Marseilles parity; 1. Admissibility of Applications 19/60 and In the alternative, and in the event of the 21/60 with regard to the application of enforceable decision's being upheld, that the Article 35 of the Treaty High Authority be ordered to pay the same sum of FF 20 800 as damages for a In respect of these two applications the wrongful act or omission in the performance defendant raises the question whether the of its functions; conditions precedent for an action for (d) In Case 3/61 (Marrel Frères) that the failure to act based on Article 35 are Court should annul 'as being ultra vires satisfied in the present case. It does so from and contrary to the rules of law relating to two points of view: the application of the ECSC Treaty', the en (a) Under what provision was the High forceable decision of the High Authority of Authority bound to take the decision 14 December 1960 ordering it to repay the requested? sum of FF 4 760 which it had received as (b) There was not in this case an express the difference in the transport costs for request for a decision or, in conse shipyard scrap on the basis of the Marseilles quence, formal notice duly served. parity; On the first point (a), the applicants reply In the alternative, and in the event of the that, in making 'part' payment of the enforceable decision's being upheld, that the equalization amounts due to them, the High High Authority be ordered to pay the same Authority was acting on the basis of its sum of FF 4 760 as damages for a wrongful Decisions Nos 16/58, 17/58, 23/58, 29/59 act or omission in the performance of its and 30/59 fixing the general rules to be functions. applied with regard to equalization. For this (e) In all four cases, that the High Authority reason, it had a duty under those decisions be ordered to pay the costs. to make the equalization payments and was, The defendant contends that the applica of necessity, bound subsequently to meet the tions lodged by the four applicant com applicants' requests for a further payment. panies should be dismissed as inadmissible The applicants also rely on Article 53 of the or unfounded, with all legal consequences, Treaty as a lawful and mandatory provision especially as regards the payment of fees, which regulates the working of the equaliza costs and any other expenses. tion scheme.
On the second point (b), they maintain that they could not have given the High III — Submissions and arguments of Authority formal notice to take a decision in the parties clearer terms than those in their letters of 30
July and 11 August 1960. From the conclusions of the parties it is The defendant replies, first, (a) that none of clear that the applications come, first, the decisions referred to by the applicants within the context of proceedings for annul provide, in the case of shipyard scrap, for ment (Articles 33 and 35), and, secondly the grant of reimbursement of transport and alternatively, of those for damages charges within the Community and secondly (Article 40). (b), that it is doubtful whether the letters
FIVES LILLE CAIL v HIGH AUTHORITY
of July and August 1960 can constitute The defendant replies that the meaning and the essential formality provided for under scope of the arguments on which the appli Article 35. cants appear to base the substance of their claim are made clear only in the applicants' 2. Admissibility of the applications from reply. the viewpoint of exceptio obscuri libelli
Again, the defendant raises the principle of B — The substance of the case exceptio obscuri libelli but the Court is un able to say with certainty whether this refers Action for 'ultra vires acts and infringe to all four applications or merely to Applica ment of rules relating to the application tions 19 and 21/60. of the Treaty' Pursuing this objection the defendant main tains that the wording of the applications 1. In support of their argument, the appli makes it impossible to understand what con cants maintain that the High Authority had stitute the alleged ultra vires acts and no right to revoke the measures adopted by 'infringement of the rules governing the the OCCF concerning transport parity for application of the Treaty' which vitiate its shipyard scrap because this practice con implied decisions of refusal and its decisions stituted a substantive right of the parties, regarding repayment. Applications based on which is infringed by its withdrawal ex post such vague and indefinite submissions must facto. be dismissed. In their reply they submit, on this point, the In their reply the applicants maintain that following arguments to establish the legal they have set out in the clearest terms two basis and nature of this practice: basic legal submissions: (a) The consent of the OCCF in October 1958 as regards transport parity was in (a) The fact that the High Authority accordance with a practice regularly repeatedly allowed for transport parity followed by the OCCF since 1954 in making previous equalization pay which was, moreover, subsequently ments and the assurances which, in this confirmed when the High Authority case, they were given by the OCCF itself applied it to Applicants Nos. 3 created a right in their favour and the and 4. High Authority could no longer, in (b) This consent, which was a condition of March 1960, validly annul the effects their acceptance of the deliveries in of the said agreements. question, and which, under Article 1 (b) In their reply, they contend that to ig (5) of the statutes of the OCCF, they nore this situation constitutes a breach were free to accept or to refuse if the of a general principle of law 'which price of the scrap was unsatisfactory, comes within the rules governing the was binding on the High Authority as application of the ECSC Treaty', the body responsible for the working of namely, the principle governing the the OCCF, which it controlled through revocation of an administrative a permanent representative. measure and, in particular, the time- In this connexion, the applicants invoke limit within which revocation can be also the High Authority's quasi- effected. delictual liability for a wrongful act or The applicants add that, as the OCCF omission in the performance of its func has always operated under the control tions. and on the responsibility of the High (c) By virtue of the rules applicable to the Authority, 'the formal undertakings' revocation of administrative measures, which it has 'entered into' are binding even assuming their illegality, it was not on the latter and 'annulment' of them legally possible for the High Authority, is illegal. in March 1960, that is to say after a
JUDGMENT OF 15. 12. 1961 — J0INED CASES 19/60, 21/60, 2/61, 3/61
lapse of 17 months, to annul the effect parity appears to have been fairly common of the consent given by the OCCF in in France, intermittent or at least very October 1958 regardless of the reasons variable in Italy and in the Netherlands and, which impelled it to withdraw these finally, completely non-existent in Germany, agreements, especially in view of the Belgium and Luxembourg. fact that the High Authority did not ac On this point the applicants claim that the cuse them of bad faith as a result of problem of parity arises very rarely or not at false or incomplete information. all in countries where the seaports are (d) The principle which prohibits situated at the same distance from or closer withdrawal of administrative decisions to the works than the recovery yards. cannot be undermined by the fact that As regards the legal arguments: the statements of account or the (a) The defendant states first that the equalization payments are provisional. revocation of an administrative They are provisional only in so far as measure consists in a decision taken by adjustments have to be made either an administrative authority concerning because of substantive corrections of measures it has adopted itself and arithmetical errors or because of revi which it decides to retract.
This is not sion of the amounts of the factors used the situation in this case since: in the calculations but not because of In Cases 19/60 and 21/60, no decision changes in the basic principles had been taken by the High Authority, themselves; once these have been and it is not, therefore, withdrawing adopted, they cannot be called in ques any decision; it merely claims that un tion again. dertakings given unlawfully by OCCF The decisions of the OCCF have, accor officials who are not empowered to do dingly, conferred individual rights on so have no value and ought not to be the applicants which the High enforced. Authority can no longer take away In Cases 2/61 and 3/61, the claim for
from them. repayment amounts to nothing more 2. Against the arguments of the applicants than recovery of sums not owed and the defendant puts forward four submis paid in error. sions which may be summarized as follows: In any event, the Court has in its judgment (a) No withdrawal of an administrative in Joined Cases 42 and 49/59 (SNUPAT) decision, properly speaking, is involved itself recognized that the withdrawal of an in this case. administrative measure with retroactive (b) The 'undertakings' which the appli effect is permissible where, as in the present cants claim constitute decisions have no case, the public interest of the Community, legal value because they were entered which is to ensure the proper functioning of into unlawfully by unauthorized the equalization scheme, must prevail over agents. the private interest which particular under (c) The said undertakings' are absolutely takings have in maintaining an illegal void since they conflict with the fun
advantage. damental principles of the Treaty and In the rejoinder, it reinforces this argument of the equalization scheme. by emphasizing that, during the period (d) The fact that the statements of account when the purchases in dispute took place, and payments are provisional makes it the price of imported scrap was lower than possible for them to be revised or that of shipyard scrap. recovered. The applicants contest this argument by As regards the actual situation, the defen producing, in their reply, statistics to dant contends in general terms that, far demonstrate that, despite the liability con from being widespread, as the applicants stituted by the grant of the transport parity, argue, the practice of granting a transport the purchase and consumption of shipyard
FIVES LILLE CAIL v HIGH AUTHORITY
scrap were in the interests of the Com the Community and laid down the munity because its cost price was un principle that the equalization doubtedly lower than that of imported price could in no way be corrected scrap. They add that, in any case, it was not to allow, in whole or in part, for in the interest of the Community to import transport costs or other charges in scrap at the cost of foreign currency. curred between the place of delivery fixed for the equalization (b) Finally, the defendant states that the price and the place at which the 'undertakings' of the OCCF were scrap was used. without legal value since they were The applicants object that the last entered into by officials of the OCCF three of these decisions (Decisions who had no power to enter into them Nos 19/58, 15/59 and 18/60) were and that, in those circumstances, these of subsequent date to the under
undertakings cannot create or con takings given by the OCCF in Oc stitute a legal rule subject to the princi tober 1958 and that, in any case, ples governing the withdrawal of ad before Decision No 18/60, there ministrative measures. This is because: was no express prohibition in the defendant's decisions against (i) Neither the OCCF nor the Caisse applying the correcting factor for de Péréquation des Ferrailles Im
transport on which they rely; by portées (the Imported Ferrous the date on which Decision No Scrap Equalization Fund, hereinafter referred to as 'the 18/60 was issued, 24 August 1960, the scrap had been delivered to the Fund') had the power, without the applicants for almost two years. approval of the High Authority, to decide on their own initiative that (ii) The OCCF's general lack of the disadvantageous geographical authority and that of the Fund in position of certain undertakings volve, a fortiori, that of the ser should be redressed by refunding vants of the governing bodies of the difference in transport costs. those organizations and, even In this connexion the High more, of all other subordinate Authority recalls that its perma staff, to whom powers can be nent representative or his deputy delegated by management boards could make the decision of the only in terms of purely executive Council of the OCCF or of the action. All power of decision which Fund subject to approval by the involves incurring liability on the High Authority. part of the agencies of the According to the defendant, there equalization scheme is vested sole was, before 1956, already some ly in the relevant management disagreement within the Council boards. of the OCCF about the extent to This situation, which arises under which the geographical position of the published statutes of those undertakings could be taken into organizations, could not have been account in fixing the equalization unknown to the applicants, still price. less to their representative at the To settle the argument, the High OCCF, namely the UCFF.
Against Authority in turn adopted Deci this argument the applicants ad sions Nos 34/56, 19/58, 15/59 and vance the contention that, even if 18/60 which 'expressly' fixed at the financial bodies set up by the the vendor's yards the equalization High Authority and which are price for scrap treated as imported subject to its control had exceeded scrap broken up on the territory of their powers because of their
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60, 2/61, 3/61
organization, they were as ostensi firmed and ratified the undertak ble agents, able to give valid ings given earlier by the OCCF. 'undertakings' to bona fide third (c) The defendant contends that the prac parties without in each case ob tice of granting a transport parity con taining prior proof of authoriza travened both the general principles of tion from the High Authority. non-discrimination and of equal access (iii) The defendant continues to main to the sources of production provided tain that, after publication of the for under Articles 4(b) and 3(b) of the basic decision, No 13/58, measures Treaty and the very reason for the such as those which the contested equalization scheme. Its permanent undertakings involved could only representative at the OCCF could not therefore have allowed it even if he had be made by itself. This decision, No 13/58, which been aware of it, and the High was adopted following and in ex Authority was unaware of the problem until after the OCCF and the Fund had ecution of the judgment of the Court in Case 9/56 (Meroni v been dissolved. Moreover, if the princi High Authority), expressly put an ple on which the applicants base their end to the delegations of powers claims was accepted, it ought logically made earlier to the OCCF and the to have been applied to imported scrap Fund. in the case of consumers who were at
After 1 August 1958 those different distances from the seaports, organizations could have been but that has never been suggested. entrusted only with simple ex The principle of refunding the tran ecutive work; consequently any sport 'parity' has, therefore, never been organization, authority or agent recognized by the High Authority and other than the High Authority had was formally disapproved by it as soon absolutely no power to take a deci as unjustified action to that effect was found to have been taken. sion such as that permitting the re fund of the transport parity. The applicants reply that the contested 'Assurances' such as those on undertakings are not in conflict with which the applicants rely and either Article 3(b) or with Article 4(b) which date from September 1958 of the Treaty. were therefore based on measures First, they certainly accord with the having no legal value and which, principle of equal access, since their absence would have meant that some assuming that the High Authority works would have been denied access to wanted to change its point of view, ought to have been taken by it in shipyard scrap. the form of and pursuant to a Secondly, the result of the provisions general decision. adopted by the OCCF is not to create The applicants reply that the prin but, on the contrary, to prevent dis crimination between consumers of im ciple of transport parity has always been accepted by the ported scrap and consumers of shipyard OCCF for whose work the High scrap because their effect is to place Authority was in any case respon both in the same position. sible. Nor is there any discrimination The latter itself applied the princi between the various undertakings ple on two occasions after August needing shipyard scrap because the 1958, after checking the relevant principle of refunding transport statements of account and pay charges was applied to all undertakings ment of the amounts in question; in the six countries which could prove it could not have more clearly con excessive transport costs.
FIVES LILLE CAIL v HIGH AUTHORITY
The applicants further maintain that (d) (i) The defendant contends that there transport parity is in the interest of the can be no doubt about the legality general public, which bears the excess of the procedure for recovering un of the purchase price of imported scrap lawful payments when it is borne and scrap treated as such including in mind that the equalization shipyard scrap, over the equalization scheme is based on principles of prices. During the whole equalization public law and when account is period, the cost price of shipyard scrap, taken of the necessarily on rail ex scrap recovery yard was provisional nature of the amounts markedly lower than the cost price of paid under this financial scrap imported by sea cif the port of machinery. It denies that the entry; it was therefore in the interest of provisional nature of the state the public to purchase all available ments of account is as unimpor supplies of shipyard scrap. The effect, tant as the applicants claim. It therefore, of the undertakings entered goes without saying that material into by the OCCF was to reduce the errors are always subject to burden of equalization and to prevent amendment; to describe a discount the export of amounts of scrap at prices as only provisional implies that it which were especially favourable to is subject to further adjustments consumers as a whole; these undertak going beyond mere material ings fulfilled one of the fundamental amendments, for example adjust objectives of the Treaty, which is to en ments arising from the fact that sure the establishment of the lowest the initial calculation took account prices in accordance with Article of factors which ought to have 3(c). been ignored. Of course, the In its reply, the defendant states that provisional nature of the state the applicants' view is based on mis ments of account obviously does interpretation of the fundamental not constitute authority for altera provisions of the Treaty governing tions in the principles themselves, equal access and non-discrimination. It but the decisions concerning presupposes that natural differences repayment which are complained produced by geographical location are of entail no alteration in the prin compensated for by artificial means; to ciples which the High Authority introduce into the equalization scheme claims to have previously accepted. a formula for geographical correcting (ii) The defendant contests, as regards factors based on the distance between the effect in law of errors which it
undertakings and their centres of supp holds to be open to amendment, in ly would be to adopt an attitude which particular those concerning the is in every respect alien to the fun applicants in Joined Cases 2 and damental principles of the Treaty. 3/61, that the fact that it included The applicants' reply to this is that the the transport parity refund in the High Authority has, in the case of applicants' first statement of ac ferrous scrap, nevertheless allowed count and subsequently in certain differences arising from geographical fresh amended statements, can be location to be redressed by adding $2 to interpreted as meaning that it the equalization price of scrap ac thereby decided to accept the ac cording to whether or not imports tual principle of reimbursement entered over land or by water; the and to confirm the agreements and feasibility of making such imports is es undertakings entered into earlier sentially dependent on geographical cir by the OCCF; in its view, it only cumstances. intended to take an implementing
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60,2/61, 3/61
decision into which there crept an abandon at some time. Accordingly, its error. refusal to allow for the transport parity in To maintain the contrary would no way amounted to a change of mind on its be to accept that the High part, of which it should have informed those Authority consciously acted in concerned, but was the application of the conflict with its Own general deci legal rules which it had laid down: it denies sions and deliberately agreed to having been guilty of a wrongful act or discrimination between the un omission by failing to inform the undertak dertakings in the Community ings of the alleged abandonment of a prac which is expressly prohibited un tice which was neither consistent with the der the Treaty. Treaty nor widespread. The High Authority merely made In any case, the applicants cannot complain a mistake which it had a duty to of lack of information without revealing the correct and which the provisional negligence of which they themselves were nature of statements of account in guilty when, particularly after publication any case enabled it to make good. of Decision No 13/58, they relied on promises which were made to them in the Application for damages in respect of a circumstances which they describe; after wrongful act or omission publication of that decision, they could not have been unaware that the executive bodies 1. The applicants claim that the defendant has been guilty of a wrongful act or omis with whom they were dealing had no power sion in that it failed to make its new view whatever to take decisions of principle such point known in good time and thus allowed as that in question. A wrongful act or omis undertakings to enter into undertakings sion on the part of the alleged victims ex which they would have refrained from empts the defendant from liability. entering into if they had been properly in 2. Another wrongful act or omission on the formed. part of the High Authority is, in the appli In their view, it was for the High Authority, cants' view, the way, which the defendant as soon as it took over the management of itself describes as improper, in which the the equalization scheme itself on 24 July equalization scheme for which it is responsi 1958 to announce without delay that it in ble functioned. The OCCF always func tended to put an end to the practice of tioned under the control of the High refunding the transport parity which had Authority and not under that of the under been followed constantly since 1954. By fail takings; it was therefore the duty of the ing to do so and in waiting nearly two years High Authority and of it alone to examine to define its position expressis verbis after the measures adopted by the OCCF. having itself carried out the OCCF's under If, as the defendant maintains, the OCCF's takings to the applicants in Joined Cases 2 agreements were manifestly irregular, the and 3/61, the High Authority was guilty of High Authority is gravely at fault for hav a wrongful act or omission giving rise to ing, in two of the present cases, itself given liability on its part. It should, therefore, be effect to provisions which were so clearly ordered to compensate the applicants for the unlawful under the signature of one of its damage suffered, which they assess as the Directors-General.
amounts which they could have claimed as The applicants add that, according to the additional transport charges. defendant's submission, the agreements of The defendant replies that repayments of the OCCF, on the basis of which the appli transport charges merely constituted mis cants committed themselves, are null and takes confined to certain undertakings in the void since they were made by unauthorized Community and in no respect a regular and agents who acted without the consent of the widespread practice based on a principle High Authority. The OCCF has accordingly which it accepted and which it decided to been guilty of a wrongful act or omission in
FIVES LILLE CAIL v HIGH AUTHORITY
not consulting the High Authority in ad In the light of these observations, the defen vance. It is responsible for the working of dant contends that no serious negligence on the OCCF and any wrongful act or omission its part can be established. on the part of that body constitutes a 3. In its rejoinder, the defendant points out wrongful act or omission on the part of the that the estimate made by the applicants of High Authority. their damage appears to be erroneous and to The defendant replies that, although it is be the result of confusion between the ques true that Decision No 14/55 of 26 March tion of ultra vires acts and that of liability 1955 entrusted the OCCF and the Fund for a wrongful act or omission. 'under the responsibility of the High Since the undertakings on which the appli Authority' with the operation of the finan cants rely are invalid, there is, accordingly, cial machinery, this provision must not be no legal basis for payment of the amounts interpreted as establishing a system of relating to those commitments. automatic and absolute substitution of The alleged damage must therefore be responsibility but only as placing the said assessed 'directly, as it actually was'. The bodies under the supervison of the High damage to which the applicants refer arises Authority and making the latter responsible from the fact that they were dissuaded from for the proper functioning of that supervi making purchases of imported scrap which sion. would have been more profitable for them. What may, therefore, be required of the The criterion of the 'Dunkirk parity', which High Authority is normal diligence in the is the only one to which they refer, is exercise of its supervision; it is possible to arbitrary. seek to establish its liability only in so far as this supervision is seen to have been lacking. To appraise these alleged deficiencies in concreto regard must be had to the dif IV — Procedure ficulties which may arise from the technicality of the working of an equaliza tion scheme and to the periods of time which The applications were lodged in due form are inevitably required to correct the and within the prescribed period; the irregularities or mistakes which may have procedure, including the joinder of the been committed. cases, followed the normal course.
Grounds of judgment
I — The applications for annulment
Admissibility
Consideration must first be given to the admissibility of the applications. This ques tion arises in a different form in Cases 19 and 21/60 on the one hand and in Cases 2 and 3/61 on the other.
1. Cases 19 and 21/60
These applications are against an implied decision of refusal by the High Authority of requests for the payment of certain sums as transport parity. Their admissibility
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60, 2/61, 3/61
is therefore subject to the conditions laid down by Article 35 of the Treaty for the institution of an action for failure to act.
The admissibility of such an action is subject in the first place to a finding that the High Authority had, under a provision of the Treaty or rules laid down for the im plementation thereof, a duty to take a decision or make a recommendation.
It is established in this case that neither any provision of the Treaty nor any deci sion of general or individual application which would constitute a rule laid down for the implementation thereof provided for or governed any allowance whatever as transport parity. None of the decisions adopted by the High Authority under Article 53 of the Treaty, the legal basis for the institution and the working of the equaliza tion scheme, contains or lays down specific rules on this subject. Without its being necessary to examine whether these decisions formally preclude the practice regularly followed in respect and to the advantage of the applicants, they could not in any case, in the absence of a general foundation in law, constitute rules laid down for the implementation of the Treaty which could create for the High Authority a duty to act in a particular manner. Since the High Authority was under no duty to act, the conditions laid down in the first paragraph of Article 35 are therefore not satisfied.
Furthermore, since there was no submission alleging misuse of powers, it is not necessary to enquire whether it was open to the High Authority to take action within the meaning of the second paragraph of Article 35.
Since, in these circumstances, the conditions of Article 35 of the Treaty have not been fulfilled, the action brought by the applicants must be declared inadmissible.
2. Joined Cases 2 and 3/61
The defendant contends that, in the absence of details, the wording of the applica tions does not make it possible to identify the substance and effect of the complaints of ultra vires acts and of 'infringement of the rules of law relating to the application of the Treaty' which may entail the annulment of the contested decisions. Thus both the mandatory rules laid down in Article 22 of the Protocol on the Statute of the Court of Justice of the ECSC and those laid down in Article 38 of the Rules of Procedure, which provide that the applications originating the proceedings shall contain a 'brief statement of the grounds on which the application is based' have been infringed.
It is not clear from a study of the submissions of the High Authority whether it in tended to challenge the applications in Joined Cases 2 and 3/61 from the viewpoint of procedural requirements as well as those in Joined Cases 19 and 20/60. Nevertheless, the Court must of its own motion consider this question since the provisions governing the form of applications affect not only the interests of the parties but also the right of the Court to exercise its power of judicial review.
FIVES LILLE CAIL v HIGH AUTHORITY
With regard to the wording of the applications, although it must be accepted that the statement of the grounds for instituting the proceedings need not conform with the phraseology or the list in the first paragraph of Article 33, it may be sufficient for the grounds for instituting the proceedings to be expressed in terms of their sub stance rather than of their legal classification provided, however, that it is suf ficiently clear from the application which of the grounds referred to in the Treaty is being invoked. A mere abstract statement of the grounds in the application does not alone satisfy the requirements of the Protocol on the Statute of the Court of Justice or the Rules of Procedure. The words 'brief statement of the grounds' used in those instruments mean that the application must specify the nature of the grounds on which the application is based. The ground of complaint relied upon must therefore be established in relation to the facts which have been set out. This has not, however, been done in the present case.
The applicants have, in fact, confined themselves to accusing the High Authority of acting ultra vires and infringing the rules of law governing the application of the Treaty without specifying what constituted the ultra vires acts, which is a general expression capable of covering all cases in which an application for annulment is lodged as provided for in Article 33, and, moreover, without identifying the rule of law the infringment of which by the High Authority is such as to justify lodging an application.
Reference to an undertaking given to the applicants and to an assurance given to them by the OCCF or the UCFF when contracts relating to scrap were entered into does not disclose a general and impersonal rule of law the infringement of which can by itself initiate proceedings for annulment. Only in their reply do the appli cants specify 'the rule of law' alleged to have been infringed as the general principle governing the legality of the revocation of administrative measures, a principle 'which comes within the rules of law relating to the application of the ECSC Treaty'.
The ground for annulment set out in these terms was referred to neither directly nor by implication in the applications originating the proceedings. It does not con stitute the amplification of a submission set out therein but an entirely new submis sion. The submission was accordingly, made out of time and, for that reason, the applications must be declared inadmissible.
II — Applications for damages
A — Admissibility
The four applicants seek pecuniary compensation from the High Authority for the damage which they claim was caused them by a wrongful act or omission on the part of the Authority in the performance of its functions.
JUDGMENT OF 15. 12. 1961 — J0INED CASES 19/60, 21/60, 2/61, 3/61
This wrongful act or omission is alleged to take three forms. In the first place, the High Authority failed to make known in good time its new view on transport parity and thus allowed the undertakings to enter into commitments which they would have refrained from entering into if they had been properly informed. Secondly, it failed to prevent, by adequate supervision, the bodies operating under its control or under its direction from taking unlawful action and entering into illegal commit ments. Finally, it is accordingly liable for the unlawful and defective working of the equalization scheme.
In consequence, the applications for compensation are not based on the submission that the High Authority illegally withdrew from them rights and privileges which had been granted to them by the OCCF. Those applications are based on grounds which are independent of those of the applications for annulment. They are, conse quently, admissible.
B — Substance
1. Wrongful act or omission on the part of the High Authority
The defendant claims that the applicants wrongly accused it of having, in 1958, changed its mind with regard to transport parity. On the contrary, it always con sidered that this parity could not form part of the equalization price, and in support of this claim the High Authority relies principally on Decision No 34/56. It further contends that, although the question of refunding the transport parity was raised at the OCCF, it was never the subject of a decision of principal. However, there appears to be no need to go into these arguments. Even if they were substantiated they would not alter the fact, admitted by the High Authority, that promises to re fund transport costs were on various occasions made and carried out.
These promises were made possible only because the High Authority failed to exer cise sufficient control over the working of the equalization scheme, with the result, as is, moreover, clear from its own statements, that it was unaware of the existence of practices which were incompatible with its policy on transport parity.
The High Authority contends in vain that it could be unaware of the existence and extent of the transport parity by seeking to minimize its effect and reduce it to 'errors confined to certain undertakings in one of the countries of the Community'. In fact the size of the payments made as transport parity to French undertakings ($349 021), Italian undertakings ($160 000) and Netherlands undertakings ($13 000), which is a total of more than $500 000, was certainly such as to attract its attention if it exercised sufficient supervision, especially since it had a permanent representative on the boards of management of the Brussels organizations. In any case, the very fact of having authorized the equalization scheme, in whatever form,
FIVES LILLE CAIL v HIGH AUTHORITY
obliged the High Authority to supervise it, which in fact was the principle laid down by Article 1 of Decision Nos 22/54 and 14/55 setting up the said scheme. The High Authority's failure to exercise adequate supervision is further aggravated as regards the present disputes. In these cases the assurances with regard to the transport parities were in fact given to the applicants at a time when the High Authority no longer limited its activities to mere supervision of the equalization scheme but had, by Decision No 13/58, taken over the administration of it. Alerted by previous dif ficulties, it ought to have intensified its surveillance of the organizations which con tinued to act de facto on its behalf. Whatever the reasons for this failure, in not preventing them from continuing their previous practices and, in particular, from making promises in October 1958 to the four applicant companies, with regard to the grant of the transport parity, whatever were the reasons for this omission, it gravely neglected the duties of supervision required by a normal standard of care, and it is this shortcoming which gives rise to its liability.
The defendant continues to maintain that the lack of supervision cannot have affected the applicants adversely since the latter must have been aware of the il legality of the measures adopted in their favour and also of the lack of authority of the organizations which had adopted them.
This submission cannot be accepted. The fact that, by Decision No 13/58, the Fund had been entrusted with the application of the financial machinery and that, at the time, similar promises had been repeatedly made and fulfilled in the case of a large number of undertakings in the Community might lead the applicants to believe that the promises made to them were legal and reflected the intentions of the High Authority. It is impossible to argue against this that neither the nature of the equalization scheme nor the principles of the Treaty permitted the equalization rules to be applied in this manner. In fact, whatever the merits of such an argu ment, it is not in dispute that the practice of transport parity was forbidden in clear and formal terms only by Decision No 18/60. It is understandable that, not having made a detailed study of the legal issues likely to be involved in this connexion, the applicants regarded that practice as a normal application of those regulations.
2. The applicants' damage
The applicants assess the damage for which they are seeking compensation as the amounts of transport parity which were promised or paid to them. This assessment is unacceptable. The wrongful act giving rise to the liability of the High Authority is not caused by the fact that it did not pay that parity but by the lack of adequate supervision of the organizations responsible for applying equalization. It is from this view, therefore, that the existence and amount of damage must be assessed. The existence of damage can be accepted only if it is established that the purchase of shipyard scrap without the benefit of the transport parity grant was more expen-
JUDGMENT OF 15. 12. 1961 — JOINED CASES 19/60, 21/60, 2/61, 3/61
sive for the applicants than an outright purchase of imported ferrous scrap. The applicants have neither submitted nor offered evidence on this point and their applications cannot therefore be upheld.
Costs
The applicant parties, having failed in their submissions, must, under the terms of Article 69 of the Rules of procedure of the Court of Justice of the European Com munities, be ordered to pay the costs.
Upon reading the pleadings; Upon hearing the report of the Judge-Rapporteur; Upon hearing the parties; Upon hearing the opinion of the Advocate-General; Having regard to Articles 35, 40 and 53 of the Treaty establishing the European Coal and Steel Community; Having regard to the Protocol on the Statute of the Court of Justice of the Euro pean Coal and Steel Community; Having regard to the Rules of Procedure of the Court of Justice of the European Communities;
THE COURT
hereby:
1. Dismisses the applications;
2. Orders the applicants to pay the costs.
Donner Rueff
Delvaux Hammes Rossi
Delivered in open court in Luxembourg on 15 December 1961.
A. Van Houtte A. M. Donner
Registrar President