# C_2005193EN.01000101.xml

| 6.8.2005 | EN | Official Journal of the European Union | C 193/1 |
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6.8.2005

EN

Official Journal of the European Union

C 193/1

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JUDGMENT OF THE COURT

JUDGMENT OF THE COURT

(Third Chamber)

of 16 June 2005

in Case C-123/02: European Parliament v Royal & Sun Alliance Insurance (1)

1

(Arbitration clause - Insurance policies - Termination on grounds of increase of the risk insured - Abuse - Contractual liability - Damages)

(2005/C 193/01)

Language of the case: French

In Case C-123/02 European Parliament (Agents: D. Petersheim, O. Caisou-Rousseau and M. Ecker) v Royal & Sun Alliance Insurance (Lawyers: J.-L. Fagnart and L. Vael) — action brought on 5 April 2002 under Article 238 EC — the Court (Third Chamber), composed of A. Rosas, President of the Chamber, R. Schintgen (Rapporteur) and K. Schiemann, Judges; P. Léger, Advocate General; M. Múgica Arzamendi, Principal Administrator, for the Registrar, gave a judgment on 16 June 2005, in which it:

European Parliament

Royal & Sun Alliance Insurance

| 1. | Holds that the termination of guarantees in contracts nos. 5.013.347 and 1F516.071 notified by Royal & Sun Alliance Insurance to the European Parliament on 9 October and 6 November 2001 constitutes a wrongful termination of those contracts; |
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1.

Holds that the termination of guarantees in contracts nos. 5.013.347 and 1F516.071 notified by Royal & Sun Alliance Insurance to the European Parliament on 9 October and 6 November 2001 constitutes a wrongful termination of those contracts;

| 2. | Orders Royal & Sun Alliance Insurance to compensate the damage caused to the European Parliament as a result of the wrongful termination of contracts nos. 5.013.347 and 1F516.071; |
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2.

Orders Royal & Sun Alliance Insurance to compensate the damage caused to the European Parliament as a result of the wrongful termination of contracts nos. 5.013.347 and 1F516.071;

| 3. | Holds that the sum due as compensation for the damage which Royal & Sun Alliance Insurance caused the European Parliament in respect of the year 2001 is obtained by multiplying, firstly, the sum of EUR 205 131,75 by the percentage of premiums received by Royal & Sun Alliance Insurance out of the total sum of those due by the Parliament to the four co-assurors and by multiplying, secondly, the sum of EUR 178 453,01 by the same percentage and by the fraction 44/46, which corresponds to the proportion of the length of time involved. The sum which that institution paid or should have paid to Royal & Sun Alliance Insurance under the ‘labour disputes/terrorist acts’ guarantee for its assets in Belgium and Luxembourg for the period 5 November to 31 December 2001 and in respect of all the guarantees covering its assets in France for the period 18 November 2001 to 31 December 2001 must then be deducted from the sum of those two products; |
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3.

Holds that the sum due as compensation for the damage which Royal & Sun Alliance Insurance caused the European Parliament in respect of the year 2001 is obtained by multiplying, firstly, the sum of EUR 205 131,75 by the percentage of premiums received by Royal & Sun Alliance Insurance out of the total sum of those due by the Parliament to the four co-assurors and by multiplying, secondly, the sum of EUR 178 453,01 by the same percentage and by the fraction 44/46, which corresponds to the proportion of the length of time involved. The sum which that institution paid or should have paid to Royal & Sun Alliance Insurance under the ‘labour disputes/terrorist acts’ guarantee for its assets in Belgium and Luxembourg for the period 5 November to 31 December 2001 and in respect of all the guarantees covering its assets in France for the period 18 November 2001 to 31 December 2001 must then be deducted from the sum of those two products;

| 4. | Holds that the sum due as compensation for the damage which Royal & Sun Alliance Insurance caused the European Parliament in respect of the year 2002 is obtained by multiplying the sum of EUR 389 291,73 by the percentage of premiums which Royal & Sun Alliance Insurance would have received out of the total of those which the European Parliament should have paid the four co-assurors in respect of the guarantees for the year 2002 and by deducting from the product thus obtained the sum which that institution should have paid Royal & Sun Alliance Insurance in respect of the cover for its assets in France against all material damage for the year 2002; |
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4.

Holds that the sum due as compensation for the damage which Royal & Sun Alliance Insurance caused the European Parliament in respect of the year 2002 is obtained by multiplying the sum of EUR 389 291,73 by the percentage of premiums which Royal & Sun Alliance Insurance would have received out of the total of those which the European Parliament should have paid the four co-assurors in respect of the guarantees for the year 2002 and by deducting from the product thus obtained the sum which that institution should have paid Royal & Sun Alliance Insurance in respect of the cover for its assets in France against all material damage for the year 2002;

| 5. | Holds that the sums due to the European Parliament by Royal & Sun Alliance Insurance generate interest at the statutory rate with effect from 4 April 2002; |
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5.

Holds that the sums due to the European Parliament by Royal & Sun Alliance Insurance generate interest at the statutory rate with effect from 4 April 2002;

| 6. | Orders Royal & Sun Alliance to pay the costs. |
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6.

Orders Royal & Sun Alliance to pay the costs.

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(1)  OJ C 144, 15.06.2002.

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