Judgment of the General Court (Seventh Chamber) of 13 May 2020 –

Talanton v Commission

(Case T‑195/18)

(Arbitration clause — Seventh framework programme for research, technological development and demonstration activities (2007-2013) — Perform Contract — Eligible costs — Repayment in part of the sums paid — Abuse of contractual rights — Principle of good faith — Legitimate expectations — Burden of proof — Counterclaim)

1. Judicial proceedings — General Court seised under an arbitration clause — Jurisdiction of the General Court to hear a counterclaim for payment — Basis (Arts 256(1) and 272 TFEU) (see paras 41, 42)

2. Judicial proceedings — General Court seised under an arbitration clause — Determination of the law applicable to the contract (Arts 272 and 340(1) TFEU) (see paras 52-54)

3. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Proceedings by the Commission for recovery of advances paid — Recovery of debts due to the Union from third parties — Not precisely stated in the regulation — Not precisely stated in the contract — Compliance with a reasonable time limit — Criteria for assessment (Art. 272 TFEU; Council Regulation No 1605/2002; Commission Regulation No 2342/2002) (see paras 66-69, 72, 73, 76, 80)

4. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Justification of costs incurred — Proceedings by the Commission for recovery of advances paid — Allocation of the burden of proof (Art. 272 TFEU; European Parliament and Council Decision No 1982/2006) (see paras 121-125)

5. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Demonstration that the costs have actually been incurred –None — Ineligible costs (Art. 317 TFEU) (see paras 137, 162, 193, 197)

6. Judicial proceedings — Application initiating proceedings — Formal requirements — Brief summary of the pleas in law on which the application is based — Plea not supported by precise arguments — Inadmissibility (Statute of the Court of Justice, Arts 21, first para. and 53, first para.; Rules of Procedure of the General Court, Art. 76(d)) (see para. 199)

7. Judicial proceedings — Measures of inquiry — Expert’s report — Discretion of the General Court (Rules of Procedure of the General Court, Arts 88 and 91(e)) (see para. 234)

Re:

First, application based on Article 272 TFEU seeking a declaration that the expenditure declared by the applicant, in the context of grant agreement No 215952 relating to the implementation of ‘A sophisticated multi-parametric system for the continuous-effective assessment and monitoring of motor status in Parkinson’s disease and other neurodegenerative diseases’ project, concluded in the context of the Seventh Framework Programme for research, technological development and demonstration activities (2007-2013), was eligible, and that the request, by the Commission, for recovery of the sum of EUR 481 835.56 and EUR 29 694.10, pursuant to that grant agreement, amounted to a breach of the Commission’s contractual obligations, and, second, a counterclaim seeking an order requiring the applicant to pay the sum of EUR 481 835.56, together with interest.

Operative part

The Court:

1. Dismisses the action;

2. Orders Talanton Anonymi Emporiki — Symvouleftiki-Ekpaideftiki Etaireia Dianomon, Parochis Ypiresion Marketing kai Dioikisis Epicheiriseon to reimburse to the European Commission non-eligible costs in the sum of EUR 481 835.56, together with late payment interest at the rate of 3.5% from 26 February 2018;

3. Orders Talanton Anonymi Emporiki — Symvouleftiki-Ekpaideftiki Etaireia Dianomon, Parochis Ypiresion Marketing kai Dioikisis Epicheiriseon to pay to the European Commission, by way of compensation, a lump sum of EUR 29 694.10, together with late payment interest at the rate of 3.5% from 26 February 2018;