Judgment — ECLI:EU:C:2006:683
Date: 2006-10-26
Language of the case: Italian
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Approximation of laws
Concepts: General
Procedure: Action for failure to fulfil obligations - unfounded
Origin: Italy

Summary of the Judgment Approximation of laws – Combating late payments in commercial transactions – Directive 2000/35 (European Parliament and Council Directive 2000/35, Art. 4(1)) According to Article 4(1) of Directive 2000/35 on combating late payment in commercial transactions, which provides that Member States are to provide in conformity with the applicable national provisions designated by private international law that the seller retains title to goods until they are fully paid for if a retention of title clause has been expressly agreed between the buyer and the seller before the delivery of the goods, read in conjunction with recital 21 in the preamble to that directive, the Community legislature considered it desirable to ensure that creditors are in a position to exercise a retention of title on a non-discriminatory basis throughout the Community if the retention of title clause is valid under the applicable national provisions designated by private international law. The availability of such a clause to creditors may be considered to be a specific contribution to combating late payments in commercial transactions. In view of the wording of Article 4(1) of Directive 2000/35 and the purpose of that directive, it cannot be inferred from that provision that it is intended to affect any rules other than those which expressly provide, firstly, that it is possible for the seller and the buyer expressly to agree a retention of title clause before the goods are delivered and, secondly, that it is possible for the seller to retain title to the goods until they have been paid for in full. Accordingly, the national rules which concern the enforceability of retention of title clauses against third parties, whose rights are not affected by Directive 2000/35, are still governed exclusively by the national legal orders of the Member States. (see paras 28-30)